Advices

ADVICE #122

How to receive mortgage in Estonia?

Non - resident foreigners from the third countries (not EU) have almost the same rights to purchase property as citizens of Estonia. The exception is the purchase of agricultural land and forest area of over 10 hectares, and land (including land for private houses) in the border area and some small Islands.

It is important to remember that a notary, including the preliminary agreement of intent, must certify all real estate transactions in Estonia. Without the signature of the notary, the contract is void. The text of the purchase contract (and other contracts, if they need), is made by a notary public, the parties to the transaction only give him the necessary information and suggestions on the content of the text.

Banks can provide mortgages to foreigners, although the "default" assumes that the borrower already has at least temporarily (and preferably constant) the right of residence in Estonia. However, if the potential borrower has confidence in their ability and readiness to confirm officially, it makes sense to apply to leading banks with the loan. The key is "white" sustainable borrower's income, more than sufficient to repay the loan.

Formally, banks give a loan up to 80% of the cost of accommodation for up to 40 years at 2-4% per annum in Euro. In fact, for foreigners, in most cases, conditions are worse: you can count on 50% of accommodation cost at 7% per annum. If you are lucky, the conditions will be more profitable.

When talking with banks should take into account local peculiarities of terminology. Classic credit for purchase of housing in Estonia is called "housing", while "mortgage" is often called a loan secured already owned by the person housing, which can be spent on any purpose. Sometimes is marked out a loan to change the housing a short - term loan for 100% of the cost of a new apartment or house secured as new housing and old.

Such a loan allows you to buy a new housing and then slowly sell the old one. In addition, the application for the loan is called a "motion" and the applicant "applicant".

A list of documents that must be submitted to the Bank ordinary for any mortgage transaction: a passport, a confirmation of the basic and additional (if there is, it better have been) the income, property evaluation from accredited Bank appraiser, proof of ownership of the apartment. The Bank may request other documents.

Banks like to loan recipient served in the same Bank for at least 5-6 months prior to the filing of the petition (of course, with active operations sufficient for the loan amount). This significantly increases the likelihood of getting money from the Bank.

Эстония

Comments

Share your advices

Have your own method for choosing a bank? Know the best way to open a bank account, get a loan, establish a company or make money-transfer to another country? Share your expertise with other users!

Advice #61
Paculiarities of the tax system of Greece
Греция
Advice #267
How to register a company in Norway?
Норвегия
Advice #62
Peculiarities of the tax system in Denmark
Дания
All advices
Natalia Savchukov

Primorska Banka representative

Croatia 
Alekseev Alexandr

Austria 
Andorra 
United Kingdom 
Denmark 
Liechtenstein 
Luxembourg 
Switzerland 
Sergey Tabarcha

Bancamea.md founder

Romania 
All experts

Virtual Affairs: the bank of the future has no borders - it's where its clients are

Read now