A home loan is suitable for you and your family for purchasing, building or renovating your home.
We recommend that you conclude a loan protection coverage for your home loan agreement. This protects you in the event of unemployment, incapacity for work and severe health impairment and in the case of death due to illness or accident.
|Home loan conditions|
Starting from EUR 7,000.
A sum of loan may amount to 80% of the market value of housing, established as a security. When using the guarantee of Fund KredEx, the sum of loan may amount to 90% of the market value of the collateral.
Total monthly payments of financial obligations may amount to 50% of your net income. The maximum amount of loan payments depends on your income, assumed financial obligations and the number of family members.
The currency of home loan is euro.
Interest rate of a home loan is tied to Euribor. Euribor is a European Interbank Offered Rate. You may choose a 3, 6 or 12-month Euribor rate. A client-based interest marginal is added to the Euribor rate.
Upon request, you may fix your home loan interest also for a longer period. A home loan with fixed interest rate provides assurance that the loan payments do not change over the period. You can obtain further information about fixing the interest from your private advisor.
|Loan term||You can take a home loan for the maximum term of 30 years, provided that the entire loan is repaid by the age of 75.|
A suitable collateral to a home loan is the housing (apartment or private residence) to be purchased or renovated in Estonia. To obtain a valuation of collateral, use the services of our accepted real estate offices. Collateral valuation usually has a fee depending on the valuator’s price list. The collateral has to be insured throughout the loan period.
Ask for a favourable and convenient insurance offer from a private advisor.
As a rule, the amount of self-financed part is at least 20%.
Self-financing when using the KredEx guarantee starts from 10%. Further information on the conditions of the guarantee is available on the homepage of KredEx.
In the absence of self-financing, we also accept additional collateral.
If the housing used as a guarantee for the loan is not your home, the loan amount may be up to 60% of the property’s market value.
You can repay a home loan based on a repayment schedule either as annuity or as equal principal payments.
For annuity schedule, the loan payment is the same each month. When starting the loan repayment, a major part of the payment is interest. With each subsequent payment, the repayment of principal part will increase. With annuity schedule, the loan burden is distributed more evenly and in general, the modest monthly payments enable a larger loan amount.
For equal principal payments, we distribute the principal part of loan evenly on all payments, to which interest calculated on loan balance is added (the larger the loan balance, the higher the interest). This means that the amount of the monthly loan payment is larger at the beginning and decreasing towards the end of final loan term.
If you can allow yourself larger payments at the beginning of the loan term, it would be more practical to choose the schedule with equal principal payments, as in this way you will pay less interest in the end.
Upon repayment of the principal part of loan, you can apply for a grace period for up to 18 months. You only pay interest during the grace period. In this period, the loan balance decreases more slowly (compared to a non-grace period) and thus the total interest expense paid on the loan increases.
|Annual percentage rate as a typical example||
The initial annual percentage rate of charge of a home loan is 2.45% under the following sample conditions:
The total amount of repayments payable by the client is EUR 55,665.18 and the total amount is EUR 56,173.18.
|Submitting an application||
Together with the application present:
You can request further information about additional documents from a private advisor.
After the application has reached the bank, a private advisor will contact you. You will sign the agreement at a previously agreed time.
Followed by signing of the contract, the collateral shall be formalised at a notary’s office (establishment of mortgage) and property insurance concluded.
If the collateral is the joint property of spouses, also the consent of the spouse is required for the notarial acts. In addition to your passport or ID-card, the original documents certifying marital status and ownership of property must be brought along to the notary.
After establishment of mortgage, respective notary and state fees shall be paid. The exact amounts can be ascertained from a notary’s office.
You can calculate the approximate loan-related costs by using the notary and state fee calculator.
|Requirements to applicants||
To apply for a loan
Income does not imply only to salary, but also other certified and regular income (rent, parental benefit, business income, etc).
The conventional method of repayment for consumer loans is based on an annuity schedule. An annuity is a fixed-amount payment, consisting of both the loan principal and the interest calculated on the loan balance. When you make your first loan payments, interest represents a greater share of the annuity, but as the loan term approaches, the principal becomes proportionally greater.
Enter the initial loan sum, the term of the loan and the interest rate (percentage of the loan balance per year). An annuity consumer loan repayment schedule will be generated for the entire repayment period by each month. You will see the size of the annuity payment and be able to keep track of the decrease in the principal and size of the interest payments over time.
|1. Agreement fee|
|1,5% of the loan, min EUR 35|
|1% of the loan amount, min EUR 250|
|1,5% of the credit limit, min EUR 20|
|free of charge|
|1% of the loan limit, min EUR 150|
|legal entity (incl. sole proprietor, farmer)|
|1% of the credit limit, min EUR 175|
working capital loan
|1% of the loan amount, min. EUR 175|
|1% of the loan amount, min. EUR 175|
|start-up loan||1% of the loan amount, min. EUR 175|
apartment building renovation loan
|1% of the loan amount, min. EUR 175|
|2. Fee for changing of contractual terms|
consumer loan (1)
home loan, endowment loan (1)
|up to 1% of the remaining loan, min EUR 150|
|mortgage loan||up to 1% of the remaining loan, min. EUR 150|
limit loan (1)
|up to 1% of the loan limit, min EUR 35|
amending the student loan repayment schedule starting from second amendment
|EUR 7 (2)|
service fees applicable to all the loan products for private individuals except student loan
|change of the current account(s) related to the loan||EUR 20|
|change or replacement of the co-borrower of home loan, mortgage loan, endowment loan||EUR 130|
|change of the paying day once a year||free of charge|
|change of the paying day starting from the second change of the paying day within one year||EUR 20|
|grace period for the principle amount of the loan||
home loan and mortgage loan EUR 50;
|increasing the loan amount|
|- consumer loan||1,5% of the loan limit, min. EUR 35|
|- home loan||1% of the loan limit, min. EUR 250|
|- mortgage loan||1% of the loan limit, min. EUR 150|
|- overdraft||1,5% additional credit limit, min EUR 20|
|legal entity (incl. sole proprietor, farmer)|
|- increasing the loan amount/limit||1% additional loan amount/limit, min EUR 175|
|- changing of contractual terms||1% of the remaining loan /limit, min EUR 175|
|3. Contractual penalties|
|- contractual penalty for the violation of the notification obligation stipulated in the agreement, incl. for not submitting the insurance policy of collateral||EUR 32|
|- contractual penalty for the violation of any other non-monetary obligation stipulated in the loan agreement||up to 5% of the loan amount outstanding at the moment of violation|
|- contractual penalty for the violation of an obligation stipulated in the loan agreement||up to 5% of the loan amount outstanding at the moment of violation|
|4. Re-registration of a pledge established on a building into a mortgage||free of charge|
|5. Notice of debt to borrower|
|reminder of debt||free of charge|
|debt claim letter||EUR 5|
(1) All amendments to the loan, which have not been indicated under separate clauses in the price list (incl. amendment of collateral in a notarised or other form).
(2) Amendment of student loan schedule due to a grace period (for the time the borrower is engaged in military services or for three years after the birth of a child) - free of charge.
Taking a loan is an important decision, involving risks. We would like to help you in preparing an informed decision.
When applying for a loan you should do a proper homework:
You may ask information about our loan conditions and get explanations both, before concluding loan agreement as well as during its term. In case of questions, contact us on the general information lines of SEB Pank.
Before conclusion of a loan agreement we deliver to you for your information a personal Standard European Credit Information sheet, on which we give brief information on the more important conditions of the agreement. Please examine carefully the information presented on the information sheet.
If there is more than one borrower, they shall bear solidary liability upon performance of the agreement: each borrower is responsible for the repayment of loan and fulfilment of other obligations assumed under the agreement to the full extent.
We issue the loan in the currency of your residence in Estonia, i.e. in euros.
Generally we disburse the loan to your current account at SEB Pank after all preconditions to loan disbursement have been met (e.g. an additional agreement, certificate, invoice, etc., has been submitted, collateral established and the withdrawal period after conclusion of the loan agreement expired). Depending on the financing project we disburse the loan either in one or several parts.
Collateral and the extent of establishing the same (amount of pledge, limit of liability of the provider of surety, etc.) are specified in the loan agreement. Generally, the amount of mortgage established over the pledged real estate is 1.3 times the loan amount.
If we request a valuation report certifying the value of real estate provided as security, you will be obliged to select the appraiser from among our accepted professionals.
You may withdraw from the loan agreement within seven days after signing it, on conditions set out in the agreement. If by the date of submitting the withdrawal application we have already disbursed you the loan, you will have to return the loan amount and the accrued interest within 30 days as of submitting the withdrawal application. If you do not repay the loan within 30 days, it means that you have not withdrawn from the loan agreement.
If you take a loan for buying real estate, you must provide your own financial contribution, the minimum amount of which we shall specify also into the loan agreement. As a rule, the bank shall not disburse the loan before you have paid the self-financed part.
Financial contribution may be replaced with additional collateral that suits the bank.
The real estate provided as collateral must be insured on conditions set out in the loan agreement. In order for us to establish that the insurance obligation has been met, you will have to send us the insurance policy.
In case you:
we shall present you a claim for contractual penalty.
If you wish to lease or rent the property provided as collateral:
will first have to ask for our consent. Whereas we may ask you to show us the conditions of the lease or rental contract (draft contract). If our consent is not asked, we may demand contractual penalty from the borrower.
We grant the loan for a specific purpose, which shall be stated in the loan agreement. If you do not use the loan for its intended purpose, we may
Interest is a fee, which is paid for using the loan. Interest rate is specified in the loan agreement.
Interest rate may be unfixed (floating) or fixed for a specific period.
Unfixed interest rate consists of
The interval after which euribor may change depends on your chosen euribor period upon conclusion of the agreement. E.g. the new value of 6-month euribor is fixed after every six months. This interest rate could either increase or decrease every half-year.
If the interest rate changes, also the loan repayment will either increase or decrease. This may mean higher cost of repaying the loan.
Our experience shows that loans taken during the low period of base interest rate (euribor) most likely appreciate in the future, since the interest rate will rise. Our loan agreement does not contain a provision, which would stop the rise of interest rate in case the base interest rate increases.
Please consider whether you are still able to make the loan payments should the interest rate rise 2-3%. Please find here a housing loan calculator to assist you, which enables to try out different interest change scenarios.
Negative value of base rate is deemed to equal zero.
In order to mitigate the risk of raising euribor, we suggest fixing the interest rate for an agreed period. Fixed interest rate comprises
If your wish during the fixed interest period to
and the market interest rate is lower at the moment of making the said changes than the fixed interest rate agreed in the loan agreement, the bank will be entitled to request interest difference charge.
Market rate is the interest rate fixed for loans granted in euros at the international financial markets, which is in force until the end of the validity of the fixed base interest rate.
We debit the payments to be made under the loan agreement from your current account. If you have taken the loan together with a co-borrower, we will have the right to debit the loan payments also from their current account.
To repay the loan and pay interest we shall agree on a payment schedule.
Based on an annuity schedule, you will make equal payments (annuity payments) in each month, consisting of
For annuity schedule, the loan payment is smaller and interest payment bigger at the beginning of the loan term. At the end of the loan term, the division is the opposite. If the interest rate changes or the loan repayment date is changed or if you repay the loan in bigger extraordinary payments, then also the amount of annuity payment will change.
For a schedule with equal principal parts, you will pay equal principal amounts, to which interest shall be added, throughout the loan term. Accordingly, the amount payable to the bank is different each month.
During a grace period, agreed with us, you will pay only interest. In this period the loan balance will decrease at a slower pace (compared to the period without grace period) and accordingly, the total cost of interest paid on the loan will increase.
Upon request, we will forward you a sample repayment schedule at the conclusion of the agreement, which shows the principal and interest payments.
You may prepay the loan in full or in part, if you inform us of your wish 10 days in advance and pay a contractual fee. The amount of contractual fee depends on the collateral and interest rate.
If you prepay a loan secured with mortgage
Generally, the conditions of the agreement (incl. interest rate) are amended upon agreement of both parties and this shall be recorded in the annexes to the agreement. As a rule, a fee is charged for amending the conditions of a loan agreement.
If the loan agreement contains mandatory special conditions, you will have to follow these with utmost care. Only this way you may be sure that the agreement will remain in effect.
If you do not make the contractual payments in due time, we may demand penalty for late payment. We calculate the amount on the delayed payments proceeding from the rate of penalty for late payment specified in the agreement. If you violate a non-monetary obligation, we will be entitled to charge contractual penalty in the rate as set out in the agreement.
Should you remain in arrears, we will first send you a reminder. If the debt is still not settled, we shall send you a debt notice, for which you will be charged and we also inform the persons, securing the agreement, of the debt.
If the payments are overdue for more than 45 days, we shall forward the debt information to a payment default registry (AS Krediidiinfo).
We are entitled to extraordinarily cancel the loan agreement for example if you have partly or fully delayed at least three successive payments.
If you do not repay the loan upon cancellation of the loan agreement, we shall request repayment of loan and fulfilment of other monetary obligations from the provider of surety or settle from the sales proceeds of collateral. All costs related to debt collection shall be borne by you.
When signing the agreement you will pay a contract fee in the amount and on conditions set out in the agreement. Please read also the price list of loans.
If you secure the performance of the agreement with a pledge, you may incur as single charges:
The following fixed costs related to the performance of the loan agreement are added to loan and interest payments:
You (and your co-borrower) will have to open a current account with SEB Pank by the date of signing the loan agreement for the entire loan term. Your regular earnings transferred to the account determined for servicing the loan must be sufficient to cover at least the monthly loan payment.
Please consider how you will cope with the repayment of loan, should
Analyse the actual financial situation of your family and consider taking out a suitable insurance contract (such as SEB Loan Protection).
Contact us immediately if you encounter solvency problems. Call us right away also if your employment is terminated or an execution proceeding is commenced against you or your bank account has been seized. Together we shall find the most suitable solution to the situation. One possible solution could be for example amendment of the payment date or granting a grace period.
Grace period means that we shall suspend the repayment of principal part of loan for a certain period. Whereas you may also apply for postponement of the final repayment date by a grace period.
If you have any complaints concerning our activity, then first try to resolve the issue by negotiating with us. You can read about the general procedure of settling the disputes on our website at http://www.seb.ee/eng/legal/how-complain, however you may always contact also your private client executive.
If you feel that our answer is not the one you expected from us and you still think that we have violated your rights when granting the loan, you will have the right to turn to the Consumer Protection Board (Pronksi 12, 10117 Tallinn; www.tarbijakaitseamet.ee) or the Financial Supervision Authority (Sakala 4, 15030 Tallinn; www.fi.ee), for advice and explanations.
Furthermore, in order to resolve a dispute you may contact the Consumer Disputes Committee operating at the Consumer Protection Board or turn to court. A complaint to the Consumer Dispute Committee can be submitted also digitally via Online Dispute Resolution website at https://webgate.ec.europa.eu/odr/main/index.cfm?event=main.home.show&lng=ET.
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