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 | |
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Loan amount |
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. The maximum amount of loan payments depends on your income, assumed financial obligations and the number of family members. |
Currency |
The currency of home loan is euro. |
Interest rate |
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. |
Collateral |
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. |
Loan repayment |
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. |
Grace period |
Upon repayment of the principal part of loan, you can apply for a grace period for up to 6 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 69 489.60 and the total amount is EUR 70 097.18. |
To apply for a loan you must be an adult citizen of the Republic of Estonia or have a long-term residence permit. Your certified and regular monthly net income must amount to at least EUR 600, for a family EUR 800.
Client
Bank
We offer you a free comprehensive advisory service at a branch or via video. At the financial consultation we will go over your finances and assess your financial capability. If you wish to take out a loan, we will introduce you the terms and conditions of the bank.
We offer you advisory service at a branch as well as via video. At the financial consultation, we will analyse your financial needs and assess your preparedness to handle upcoming life events. We will review your and your family’s financial capability and compile a financial plan based on your needs.
If you are interested in acquiring real estate, we will talk about your potential financial possibilities for choosing an object. If you have already chosen the property you like, we will discuss your options for procuring it. At the consultation, we will also introduce you the terms and conditions of the bank.
Client
Bank
Submit a loan application: write down your loan request and your (and the person’s you are applying for a loan with) personal information and financial obligations. Remember that the bank analyses the loan project based on the information provided in the application.
Fill in a loan application at the Internet Bank, on the website of the bank, or at a bank branch. The information given in the loan application forms one base for analysing the loan project and making a decision.
The information provided in the application is not always sufficient. In this case, we will pose questions and ask that you submit additional documents. For example, if your income is received by another bank, you will need to submit a bank statement from that bank. The more specific information you provide us with, the faster the loan application process will be.
Client
Property agency
Order an expert assessment for the real estate object you wish to purchase, as well as for the one established as collateral. This assessment will ascertain the market value of the object, as well as other important information about the property.
The expert assessment of property will ascertain the market value of the object. It will also include other information that should be taken notice of (e.g. information about permits and limits related to the object).
Before you order an expert assessment, check with the bank if it is necessary. If you do need an assessment:
Client
Bank
If you have provided us with all the necessary information, we will decide about the loan and make you an offer. To accept the offer, please give us feedback during the term indicated in the offer.
After receiving all the necessary information and discussing the terms and conditions of the loan, we will decide about the loan and make you an offer. The bank’s offer includes information about the main terms and conditions of the loan (issued loan amount, interest margin, collaterals, amount of the agreement fee, etc.).
Together with the offer, we will provide you with the borrower’s checklist, which will help you in making an informed loan decision.
To accept the offer, please respond to the bank during the term indicated in the offer.
Client
Bank
If you accept the offer, you will sign a loan agreement.
If you accept the offer, we will send you a loan agreement project and the European standard information sheet that will include a summary of the information about the terms and conditions of the agreement.
Carefully read all loan documents (agreement, information sheet, etc.) before signing. If you have any questions, contact the bank or your private advisor.
If you are taking a loan with another person, both of you will need to sign the agreement and the information sheet either digitally or at a bank office.
Client
Notary
Bank
Seller
After signing a loan agreement, you and other parties will formalise a mortgage agreement before a notary, and in the case of purchasing the property, a sales agreement.
The notarial transaction takes place after signing the loan agreement. An appointment time for the meeting is booked by one of the parties to the transaction (usually the bank). If the collateral is a joint asset of the spouses, both of their consent is necessary for establishing a mortgage.
Before approving the transaction, the notary will clarify to the parties the terms and conditions of the transaction established in the notary agreement and the ones agreed on.
A notary fee must be paid for the notarial transaction. The amount is established by law. A property transaction is usually accompanied by a change in the land register, for which a state fee must be paid.
Bank
Client
After the notarial transaction, the bank will disburse the loan.
Unless otherwise agreed in the loan agreement, we generally disburse the loan within three workdays after the notarial transaction has taken place. If the loan agreement includes additional prerequisites for the disbursement (e.g. submission of additional documents), they must also be met before the disbursement of the loan.
Client
Bank
In order to diminish the risks that arise from sudden and unexpected events, conclude a collateral insurance and SEB loan protection coverage.
Please make sure that the building or apartment established as collateral for the loan agreement is insured against risks, and that a copy of a valid insurance policy has been forwarded to the bank.
The asset established as collateral must be insured at least against the risk of fire, water, vandalism, and natural disasters. The insurance must be in accordance with other terms and conditions established by the bank.
We recommend concluding an insurance agreement at one of our approved insurance companies. If you wish, we can send you a home insurance offer from one of our collaborating partners, PZU Kindlustus*.
Together with the home loan, you can conclude an SEB loan protection coverage. This will ensure a sense of security for you and your loved ones should anything happen to you to make you unable to repay the loan. In the case of unemployment, incapacity for work, severe health impairment, or death due to illness or accident, the insurance company will help you in making loan payments or will repay the whole loan amount to the bank.
Client
Bank
You will repay the loan in accordance with a repayment schedule established in the loan agreement.
Loan payments will be automatically withdrawn from your bank account in accordance with the agreed payment schedule. The payment schedule is available to you at the Internet Bank. Please make sure that on the day of the payment, the required amount is available for withdrawal on your bank account.
If you learn that your income will be decreasing or disappearing, contact us immediately to find the best solution.
You have the right to ask us for information about our loan conditions and to receive clarifications even during the term of the loan agreement. If you have any questions, contact your private advisor.
Client
Bank
After a year, come to another consultation where we will once again review the financial plan based on your needs.
We recommend coming to a financial consultation even after taking a loan. This will give us a chance to go over and, if necessary, adjust the financial plan based on your needs.
* PZU is the trademark of AB “Lietuvos draudimas” Estonian branch. AB “Lietuvos draudimas” is a Lithuanian non-life insurance company, belonging to the international PZU Group.
AS SEB Pank acts as the insurance agent of the Estonian branch of AB “Lietuvos draudimas”, and is entered in the list of insurance intermediaries published on the website of Financial Supervision Authority. The list is available at www.fi.ee.
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.
Private person | |
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1. Home loan, mortgage loan | |
- agreement conclusion | 1% of the loan amount, min. EUR 250 |
- agreement amendment (1) | up to 1% of the remaining loan, min. EUR 250 |
- changing the payment date once in a year | free of charge |
- changing the payment date as of the second change of payment date in one year | EUR 20 |
- change of the current account(s) related to the loan | EUR 20 |
- extending the loan disbursement period | EUR 50 |
- grace period for the principle amount of the loan | EUR 50 |
2. Consumer loan | |
- agreement conclusion | 1,5% of the loan, min. EUR 35 |
- agreement amendment (1) | EUR 35 |
- changing the payment date once in a year | free of charge |
- changing the payment date as of the second change of payment date in one year | EUR 20 |
- change of the current account(s) related to the loan | EUR 20 |
- grace period for the principle amount of the loan | EUR 20 |
3. Overdraft | |
- agreement amendment (1) | EUR 15 |
- changing the payment date once in a year | free of charge |
- changing the payment date as of the second change of payment date in one year | EUR 20 |
4. Student loan | |
- agreement conclusion | free of charge |
- agreement amendment (1) | free of charge |
- amending the student loan repayment schedule | free of charge |
5.Endowment loan | |
- agreement amendment (1) | up to 1% of the remaining loan, min. EUR 250 |
- changing the payment date once in a year | free of charge |
- changing the payment date as of the second change of payment date in one year | EUR 20 |
- change of the current account(s) related to the loan | EUR 20 |
6. Limit loan | |
- agreement amendment (1) | up to 1% of the loan limit, min. EUR 35 |
- changing the payment date once in a year | free of charge |
- changing the payment date as of the second change of payment date in one year | EUR 20 |
7. Other loan-related services | |
-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 |
- re-registration of a pledge established on a building into a mortgage | free of charge |
- reminder of debt | free of charge |
- debt claim letter | EUR 5 |
- certificate on paid interests (2) | EUR 4 |
Legal entity | |
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1. Investment loan | |
- agreement conclusion | 1% of the loan amount, min. EUR 200 |
- agreement amendment | 1% of the remaining loan /limit, min EUR 200 |
2. Working capital loan | |
- agreement conclusion | 1% of the loan amount, min. EUR 200 |
- agreement amendment | 1% of the remaining loan /limit, min EUR 200 |
3. Overdraft | |
- agreement conclusion | 1% of the loan amount, min. EUR 200 |
- agreement amendment | 1% of the remaining loan /limit, min EUR 200 |
- increasing the loan amount/limit | 1% additional loan amount/limit, min EUR 200 |
4. Start-up loan | |
- agreement conclusion | 1,5% of the loan amount |
- agreement amendment | 1% of the remaining loan /limit, min EUR 200 |
5. Apartment building renovation loan | |
- agreement conclusion | 1% of the loan amount, min. EUR 200 |
- agreement amendment | 1% of the remaining loan /limit, min EUR 200 |
6. Other loan-related services | |
- 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 |
-re-registration of a pledge established on a building into a mortgage | free of charge |
- 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) Commission fee applies to certificates issued at a bank office. A certificate issued automatically in the Internet Bank is free for the client (for enclosing electronically to income tax return).
Takinga loan is an important decision and involves risks. We would like to help you in preparing an informed decision.
When applying for a loan, you should prepare thoroughly:
You may ask information about our loan conditions and get explanations both before concluding a loan agreement as well as during its term. In the case of questions, contact us on the general information lines of SEB Pank.
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