Mortgage loan

There’s no place like home!

Home loan will be a perfect solution if you need a loan for a new home, serious renovation or construction.

  • Special offer: if you sign the home loan agreement in the Internet-bank (by using the qualified Smart ID signature, mobile signature or electronic identity card), we will apply a 30% discount on the loan administration fee.

  • Fast application processing
  • Opportunity to pay back earlier and manage your contract via Internet Banking
  • We constantly offer discounts for home loans, which we apply with regard to offers of the specified real property companies. You will receive the discount code from the seller and do not forget to submit it when completing the application for the home loan in the Internet Bank.
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The loan must be secured by mortgage of real estate acceptable to the bank. Please note, that by using these financing services, you are assuming financial obligations. Improper fulfilment or non-fulfilment of financial obligations may have a negative impact on your credit history and make borrowing more expensive; you also risk losing ownership rights to the mortgaged real estate.

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  • For buying new home.
  • For purchasing land plot and building a home.
  • If you wish buy new property before selling the old one.
  • Down payment starting from 15%.

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  • For other bigger expenses by collateralizing your own property.
  • For furnishing, remodelling, renovating or buying other properties (e.g. a summer house).
  • Down payment may not be needed if you collateralize your own property.

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A state subsidy can be used for paying part of the home loan or part of the deposit.

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Home Loans and Home Equity Loans. General Terms and Conditions Download

Mortgage Loans with State Support (from 2006) and Home Loans Insured by UAB ‘Būsto paskolų draudimas‘. General Terms and Conditions Download

List of independent property valuators Download

What to do in case of loan repayment problems
  1. Determine how much you can expect to borrow based on your current salary and financial commitments.
  2. Fill in the application on the Internet Banking site and get a consultation.
  3. The bank notifies you of its loan decision.

  4. Sign the loan agreement on the Internet Banking site and set up home insurance. Special offer: if you sign the home loan agreement in the Internet bank (by using the qualified Smart ID signature, mobile signature or electronic identity card), we will apply a 30% discount on the loan administration fee. Discounts are applied to the rates valid on the signing moment of an agreement. The offer is valid if an application is filled in until 30.06.2020.

  5. After the notarial transaction, the bank will disburse the loan.

Any property to be bought and mortgaged must be appraised by an independent valuator.
  • Loan amount from 10,000 EUR.
  • Loan up to 85% of collateral value.
  • Loan term up to 30 years.
  • Income at least 500 EUR per month after taxes, at least 800 EUR per month with a co-borrower.
  • Interest rate consists of individual interest margin and 6-month Euribor.
  • Additional expenses (notary, real estate valuation) and bank fees will apply to your loan.
  • Loan is repayable on the basis of annuity or amortization schedule within the agreed term by pre-determined monthly payments on your chosen payment date.

You may select any of the following loan repayment methods:

  • Annuity method is the loan repayment method whereby the loan is repaid to the Bank in equal instalments consisting of the loan repayment amount and the interest amount, and such instalments are payable until the date of drawing up a new payment schedule.
  • Linear method is the loan repayment method whereby the loan is repaid to the Bank in equal instalments but the amount of the last instalment may differ from other instalments. I
  • Fixed payments annuity method is the loan repayment method whereby the loan repayment schedule is drawn up by the annuity method but the instalment consists of the interest payable for the past month and the repayable loan amount. The term of the loan agreement changes (increases/decreases) along with changes in the interest rates, however, not exceeding the pre-set term, and the monthly payment to the bank remains fixed. The fixed monthly payment may be increased for the client only in case if, along with the increase in interest, the term of the loan agreement reaches the maximum term and the fixed payment will be not sufficient to repay the loan and to pay interest. If the interest rate drops, the monthly payment decreases to the fixed amount.

The overall variable interest rate consists of the variable interest base and the interest margin set for the client individually.

The interest margin is calculated for each Client on an individual basis.

The interest margin is set upon consideration of the following factors:

  • Your credit history;
  • The value and liquidity of the property mortgaged;
  • The loan term;
  • The selected interest base etc.

Interest base

Bank applies the following interest base options:

  • EURIBOR interest base: The European inter-bank offered interest rate, expressed in annual interest. EURIBOR indicator is set, administrated and published by European Money Markets Institute or other oficially appointed organization. If the EURIBOR value is below zero it is deemed that it is equal to zero;

  • PRIME interest base for mortgage loans (new loans are not issued with this interest base):

    • Published by Swedbank on a daily basis for loans in euro;
    • Consisting of two components: EURIBOR (if the EURIBOR value is below zero it is deemed that it is equal to zero) and the country‘s economic indicator.

For more information about the country‘s economic indicator click here.

The variable interest base changes every 3/6/12months, consequently, the total interest rate payable may either decrease or increase, depending on the change in the base interest rate.. New loans are available with a 6-month variable interest rate only. When selecting the variable interest rate you have to consider that the fluctuation of the interest rate in certain period can markedly increase your monthly interest payments to the Bank. In order to ensure proper fulfilment of financial obligations, the Bank recommends that you allot no more than 30 to 40% of your income for that purpose.

For today‘s interest base rates click here

When a payment is delayed or there is a substantial breach of the main conditions of the credit agreement, the Bank is entitled to review the interest rate margin unilaterally. The margin will not be changed if you were not repeatedly late or were not late for more than 15 days with your payments to the Bank and/or its companies over the last 2 years, and if you have complied with all essential conditions of the credit agreement.

A long term variable interest rate may be set:

  • For a period of up to 5 years. On expiry of this period the interest will be either automatically changed into variable interest or may be set long term variable again by agreement of the parties;
  • Only upon full disbursement of the loan or upon expiry of the loan disbursement period; until then, the agreed variable interest rate will be applied.

In case of a home loan with a long-term variable interest rate, the monthly loan repayment contribution for your selected period does not change. However, it is necessary to bear in mind the fact that at the moment the monthly loan repayment contribution is set, the variable interest rate is higher than the currently applied variable interest rate.

Selection of a long term variable interest rate does not ensure that the amount of interest paid over the loan period will be smaller but does provide an opportunity to have a stable monthly payment irrespective of economic changes, which enables a better planning of your financial flows.
Service or operation name Fee, EUR
Fee for concluding the agreement
Loan administration fee, fee for increasing of a loan amount 0.4 % of a loan amount (minimum EUR 180)
Fee for amendments to the agreement
Fee for change of loan conditions1 (loan maturity, collaterals, etc.) EUR 180
Fee for setting of a grace period EUR 90
Fee for change of interest rate 0.4 % of taken and outstanding loan amount (minimum EUR 180)
Change of interest type from fixed to variable interest, or change of interest fixation term, or change of long-term variable interest2 term3 X% (minimum - 1.5 %) from outstanding amount of the loan the terms and conditions of which are being changed For the purpose of calculating the variable X, coefficient 0.084 is multiplied by the whole number of months remaining until the end of the interest fixation period or, respectively, until the end of period of the long-term interest fixed for a period exceeding 12 months
Early loan repayment fee
When at the moment of early loan repayment the loan is charged a variable interest rate fixed for a period not exceeding 12 months No fee. Minimum early repayment amount shall be not smaller than EUR 3004
When at the moment of early loan repayment the loan is charged a fixed interest rate or a long-term variable interest rate Compensation amount (C) shall be calculated in accordance with the procedure set forth in Annex 1
Other fees
Fee for granting the approval for remortgage (conditional mortgage) to another creditor5 EUR 150
Late payment charge for the outstanding part of the principal and for unpaid interest 0.05 % per each delayed day
Additional services EUR 45

Comments:

1 Fee for change of the agreement shall not apply in the following cases:

  • when a long-term variable interest rate is charged for euro-denominated loans where not more than 1 (one) month has elapsed after the end of the loan use period;
  • for change of the servicing bank account;
  • for change of repayment day;
  • when the property being mortgaged/already mortgaged to the Bank is insured by the Bank;
  • when the loan repayment schedule is changed upon early repayment of a part of the loan and the loan balance is arranged over the residual maturity of the loan;
  • setting of a grace period for 4 months when borrowers receive 10% or 20% subsidy for existing Mortgage Loan with State Support;
  • setting of a grace period upon early repayment of a part of the loan according to the loan agreement concluded before 12 May 2008, provided that no arrangements on the change of its terms and conditions (except for the agreement on property insurance) have been signed after the specified date;
  • setting of a grace period when according to the loan agreement concluded from 12 May 2008 or according to the loan agreement regarding the amendment of terms and conditions of which arrangements were signed after the specified date (except for the agreement on property insurance), where the early repayment amount is not smaller than EUR 3006;
  • loan agreement termination arrangements when borrowers have paid the loan administration fee of the established amount after conclusion of the loan agreement and the loan has not been granted.

In individual cases higher fee for change of loan conditions may apply.

2 Before entry into force of the Law of the Republic of Lithuania on Credit Relating to Real Property, interest fixed for the period exceeding 12 months, but not for the entire loan maturity, was considered to be fixed interest. As from 1 July 2017, such interest is designated as “long-term variable interest”.

3 No fee is charged when, upon expiry of the term specified in the loan agreement, the long-term variable interest specified in the loan agreement is changed into variable interest in accordance with the terms and conditions of the loan agreement.

4 Were the amount obtained by dividing the outstanding amount of the loan by residual maturity (in months) is smaller than EUR 300, the borrower shall have the right of early repayment of such part of the loan which is smaller than EUR 300.

5 Where the reason for the approval of remortgage is the sale of the mortgaged property to another person who must mortgage such property in order to secure the repayment the loan being taken, the granting of such approval shall be charged a fee as specified in the common Service and Operation Fees of the Bank for the issue of certificates (about loans being granted / already granted / repaid loans.

Annex 1:  Compensation amount (C) shall be calculated in accordance with the procedure

A typical example:

If the total amount of a home loan being taken out related to real estate is EUR 67,000, when the duration of the credit agreement is 26 years with a 2.3 per cent variable annual interest rate, paying a one-off loan agreement administration fee established by the bank of 0.4 per cent of the credit amount (EUR 268), the minimum daily service fee (EUR 0.70 per month), the mortgage registration fee (EUR 31.28) and annuity mortgage payments, then the annual percentage rate of charge would be 2.4 per cent, and the total amount paid to the borrower would be EUR 89,785. The total number of loan payments would be 312, and the amount of each instalment would be EUR 286.

The annual percentage rate of charge, the total amount payable by the borrower, the total number of loan payments and the amount of each instalment are calculated under the assumption that the credit agreement will be valid for a period equal to the duration of the credit agreement, that the entire loan will be paid out on the day that the agreement is signed, that the parties will fulfil all of their obligations properly, and that the variable interest rate, fees and other costs will remain the same as at the time of conclusion of the credit agreement and will continue to apply until the end of the credit agreement. A customer shall also bear the costs of property insurance and appraisal. These costs depend on the individual characteristics of collateral and, therefore, are not included in the total credit price in the example above.

If the loan agreement is concluded in a foreign currency, i.e. if the currency of the customer’s revenues (or the major share thereof) and/or the customer’s state of residence, which is an EU member state or a member state of the European Economic Area, from the currency of the loan issued in euros, the change of the foreign currency compared to euro may significantly increase the amount of the issued loan and the associated payments.

The loan must be secured by mortgage of real estate acceptable to the bank, and the mortgaged property must be insured by concluding an insurance agreement. A report by an independent property appraiser may be required on the value of the collateral. The costs of property insurance and appraisal depend on individual characteristics of collateral, and shall be prescribed by agreements you may have with the relevant service providers.

By using these financing services, you are assuming financial obligations. Improper fulfilment or non-fulfilment of financial obligations may have a negative impact on your credit history and make borrowing more expensive; you also risk losing ownership rights to the mortgaged real estate.

Besides, a loan administration fee may be charged at the time of entry into a credit agreement. Loan administration fees and other fees are provided here.

Home Loans and Home Equity Loans. General Terms and Conditions Download

Mortgage Loans with State Support (from 2006) and Home Loans Insured by UAB ‘Būsto paskolų draudimas‘. General Terms and Conditions Download

List of independent property valuators Download

What to do in case of loan repayment problems

With the self-service feature, you can:

  • change payment date after the monthly payment has been made;
  • change payment account;
  • make early partial repayments.

Fill in the new loan application if you want to:

  • buy new property before selling old one;
  • apply for an additional loan.

A typical example:

If the total amount of a home loan being taken out related to real estate is EUR 67,000, when the duration of the credit agreement is 26 years with a 2.3 per cent variable annual interest rate, paying a one-off loan agreement administration fee established by the bank of 0.4 per cent of the credit amount (EUR 268), the minimum daily service fee (EUR 0.70 per month), the mortgage registration fee (EUR 31.28) and annuity mortgage payments, then the annual percentage rate of charge would be 2.4 per cent, and the total amount paid to the borrower would be EUR 89,758. The total number of loan payments would be 312, and the amount of each instalment would be EUR 286.

The annual percentage rate of charge, the total amount payable by the borrower, the total number of loan payments and the amount of each instalment are calculated under the assumption that the credit agreement will be valid for a period equal to the duration of the credit agreement, that the entire loan will be paid out on the day that the agreement is signed, that the parties will fulfil all of their obligations properly, and that the variable interest rate, fees and other costs will remain the same as at the time of conclusion of the credit agreement and will continue to apply until the end of the credit agreement. A customer shall also bear the costs of property insurance and appraisal. These costs depend on the individual characteristics of collateral and, therefore, are not included in the total credit price in the example above.

If the loan agreement is concluded in a foreign currency, i.e. if the currency of the customer’s revenues (or the major share thereof) and/or the customer’s state of residence, which is an EU member state or a member state of the European Economic Area, from the currency of the loan issued in euros, the change of the foreign currency compared to euro may significantly increase the amount of the issued loan and the associated payments.

The loan must be secured by mortgage of real estate acceptable to the bank, and the mortgaged property must be insured by concluding an insurance agreement. A report by an independent property appraiser may be required on the value of the collateral. The costs of property insurance and appraisal depend on individual characteristics of collateral, and shall be prescribed by agreements you may have with the relevant service providers.

By using these financing services, you are assuming financial obligations. Improper fulfilment or non-fulfilment of financial obligations may have a negative impact on your credit history and make borrowing more expensive; you also risk losing ownership rights to the mortgaged real estate.

Besides, a loan administration fee may be charged at the time of entry into a credit agreement. Loan administration fees and other fees are provided here.

With home insurance your home is protected both against everyday incidents as well as greater risks.

Life insurance protects your loved ones against difficulties.

Home small loan helps you out if you are planning to borrow more than 5000 EUR for home improvements.

Insurance that helps you with loan repayments in case of losing your job or capacity for work.

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