Home Purchase Loan, Mortgage Loan for Buying an Apartment

Mortgage: Features, Purposes and Application Procedures

Your own home – how often we need one, yet, unfortunately, buying a private house or apartment is the most expensive purchase. With the emergence of various home-purchase programmes, this problem has become fully solvable. In addition, a home purchase loan has expanded the opportunities available to its users and now, for example, Riga residents can purchase not only real estate – an apartment in a block of flats – but also build their own house with borrowed funds or buy one that has already been built.

Arranging a home purchase loan is a lengthy and meticulous process that may take several weeks. During this entire period, the prospective borrower will search for the most attractive real estate property in Riga and may simultaneously receive consultations from the chosen bank. Your loan specialist will help you overcome difficulties related to arranging the loan and preparing documents, as well as find alternative solutions so that, ultimately, all three parties to the transaction are satisfied: the home seller, you and the lender.

A home loan may be arranged as:

·         a consumer loan, if you are short by only 5,000–7,000;

·         a conventional mortgage, where the real estate being purchased serves as collateral;

·         a loan secured by an existing home.

All of the above-mentioned types of financing will help you purchase a home in Riga; however, you can also always use universal loans intended to address several home-related needs at the same time https://lkcentrs.lv/ . Such programmes are offered by Latvia’s and Riga’s most popular lenders, such as Swedbank.

Features of Swedbank Home Loans 

As soon as you visit the Swedbank website, you will find a detailed online loan calculator that will help you determine the monthly payment for any loan within seconds. An interesting selection of homes in Riga offered by Swedbank’s partners is also available there. If any of the offers appeals to you, Swedbank will provide a good discount if you purchase it with a loan.

What purposes can you achieve with a Swedbank home loan in Riga:

·         Purchase of a new home.

·         Purchase of a plot of land for building your own house.

·         Provision of funds for purchasing a new property when your existing home has not yet been sold.

·         Implementation of your plans with the help of funds received from Swedbank, provided that your real estate serves as security for the loan.

·         Swedbank loan funds may be used for reconstruction, renovation, remodelling or purchasing another property, such as a summer house or garage.

·         Families with children and young professionals can access an Altum state-supported loan; in this case, the down payment may be reduced to 5%.

Swedbank Mortgage Loan Terms for a Home

1.    Repayment period – up to 30 years.

2.    Loan amount – from €10,000.

3.    A Swedbank home loan can cover up to 85% of the price of the real estate being purchased.

4.    The prospective borrower’s income must be at least €600 per month after mandatory taxes and payments have been paid, and at least €800 together with a co-borrower.

5.    For the first six months, the interest rate on the Swedbank home loan is determined according to the Euribor value, plus an individually determined Swedbank margin.

6.    The borrower may independently choose the repayment method for the real estate purchase loan: differentiated (decreasing) or annuity (equal) payments.

7.    The borrower determines the payment date.

8.    To make a loan payment, you only need to deposit the required amount of money into your Swedbank account – on the specified date, the money will be debited automatically.

9.    Before concluding the loan agreement, be prepared to pay additional expenses as well, such as notary fees, state duties, etc.

How to arrange a Swedbank home loan:

·         Use the Swedbank loan calculator.

·         When choosing real estate from our partners in Riga, find out the discount code to obtain an additional benefit from the loan.

·         Complete the loan application and receive a consultation from a loan specialist.

·         Review the offer that Swedbank has prepared specifically for you and for purchasing your real estate in Riga.

·         Sign the loan agreement while arranging the insurance policy for the real estate being purchased.

·         Once the collateral (the real estate) has been registered in the Land Register, Swedbank will immediately issue the full loan amount to you.

Comparing loans – the right way to find a favourable offer

If you have genuinely decided to purchase real estate in Riga, first compare all the offers from Latvia’s popular lenders. When choosing the best offer for this substantial financing, do not forget that you can also use the assistance of a financial intermediary in Riga.

“Financial intermediary” is a term that has long become a genuine aid. Surely, you have noticed more than once that your loans do not always turn out successfully and are not advantageous for you?  Naturally, you eventually begin to regret not having approached the lender that, for example, your colleague approached and paid the same amount of money as you, but twice as quickly. However, in most cases, making the right choice requires only the assistance of an independent financial adviser. 

That is precisely why entire intermediary companies operate, selecting the best offers and helping you arrange a loan easily. The best-known ones in Riga are NetCredit and Latvijas Kredītu Centrs – financial intermediaries that, regardless of your circumstances, can find an optimal solution for every situation. You can easily verify this by simply submitting an enquiry for any type of financing to find out about your options first.