General information

Loan term

The maximum loan term is 20 years. A longer loan period means lower monthly payments. The loan must be repaid by the loan recipient`s 70th birthday.

Loan repayment

Generally, the total sum of the loan applicant(s)` loan and leasing payments may make up to 40% of the loan applicant(s)` income.
 
Loan repayment takes place on a monthly basis, when the bank debits all payments to be paid to the bank on the basis of the loan agreement from the loan recipient`s bank account without additional order.
 
It is possible to choose between an annuity schedule and schedule with equal principles. 

  • In case of an annuity schedule, the loan payment amount is the same each month. In the initial loan period, it is primarily made up of interest but with each monthly payment, the share of the principal increases. Interest is calculated on the loan balance.
  • In case of a payment schedule with fixed principles, the loan principle has been divided into equal parts and interest is added. As interest is calculated on the loan balance, so the payment burden decreases with each month.
Therefore, the particularity of the annuity schedule is equal payments and a bigger total interest sum for the loan period. The payment schedule with fixed principles means higher payment burden at the beginning of the period, consistently decreasing monthly payments and lower total interest sum for the loan period.
 
We recommend using the home loan calculator and maximum loan amount calculator for model calculations.

Interest rate

Interest is made up of base interest and the customer`s personal margin.

  • 6-month Euribor* (European Interbank Offered Rate).
  • The customer`s personal margin depends on financial indicators and other circumstances related to the specific customer`s.

The loan interest rate may change according to the agreement! In case of a potential increase in the loan interest rate, the monthly loan payments increase and due to that, the loan payments may become bigger.  

* Unfixed base interest rate EURIBOR (Euro Interbank Offered Rate) is the euro reference rate quoted for deposits of the corresponding period on the European interbank financial market, administered by the European Banking Federation and Financial Markets Association. Information about base interest rates is published on the bank`s webpage; you can also get information from bank offices and from the bank`s information line +372 628 3300.

Guarantee

Idea loan guarantee is real estate, which can be encumbered with real security i.e. mortgage and the loan sum may form up to 60% of the guarantee`s market value.

In insuring assets mortgaged in own favour in Estonia, we accept all non-life insurance companies registered in Estonia and licensed by the Financial Supervision Authority with the company`s name published on the Financial Supervision Authority`s homepage.

Insurance requirements

  • According to the loan agreement, the real estate guarantee must be insured for the duration of the loan period at least to the extent of restoration value of the object.
  • At minimum, the insurance must cover fire, flooding and natural disaster risk and vandalism damage. The maximum allowed deductible rate is 500 euros.
  • Luminor Bank AS (reg No 11315936) must be noted as the beneficiary in the insurance policy.
  • The loan recipient must submit the certificate verifying conclusion of a new insurance policy or extension of insurance policy to the Bank three days before the previous insurance policy ends at the latest. Please send the new insurance policy to the e-mail address kindlustused@luminor.ee or postal address Liivalaia 45, 10145 Tallinn.

In insuring assets mortgaged in own favour in Estonia, we accept all non-life insurance companies registered in Estonia and licensed by the Financial Supervision Authority with the company`s name published on the Financial Supervision Authority`s homepage.  

Premature loan repayment

You must fill in an application for premature loan repayment.

Premature loan repayment comes with the premature repayment fee on the prematurely repaid loan sum calculated in the amount of 3 next months` interest.

If the loan recipient gives at least 3 months` notice of premature repayment, then the premature repayment fee is not applied.

Dependent on loan agreement terms and conditions, in addition to the, interest as at payment date and/ or the cost of prematurely terminating the derivative related to setting limits on base interest rate must be paid to the bank; in case of debs, also these with accrued interest.

Costs related to loan formalities

  • Real estate appraisal.
  • Contractual fee.
  • Notary`s fee and state fee.
  • Non-life insurance.