Mortgage loan

A mortgage loan is designed to give a customer an opportunity to secure/support his/her own long-term investment with available unencumbered real property.

Maximum term 20 years
Loan amount up to 70% of the pledged assets cost
Conditions A framework for giving a mortgage loan is an income-expenditure analysis of the customer. Where there is enough income, the offer will be analysed by a customer surety. Where there is sufficiency of surety, and its liquidity is accessible, the bank can give a mortgage loan to a customer

 

APPLY FOR A LOAN
years
maximum term 10 years
base interest rate 6%

Show payment schedule

* Please note, that calculations are informative

Payment Schedule

Nr Date Loan Amount Interest Principal Payment Total Payments Outstanding Balance

Terms and conditions

1. Application for a loan may be submitted by Estonian citizens or holders of a long-term residents’ residence permit or a permanent right of residence who are at least 18 years of age.

2. The following requirements shall be met by loan applicants:

2.1. Regular and controllable net income shall be at least 280 EUR per month.

2.2. Preferably, a regular flow of income shall have been arriving into a current account with TBB pank for the last three months.

3. The ground for a loan to be granted shall be submission of the proper collateral, for instance, by way of a pledge of the property owned by the loan applicant / the third person or by way of a suretyship / guarantee of the third person. The collateral value, as estimated by the independent appraiser approved by the bank shall exceed the amount of the loan applied. The bank approves the following as a loan collateral:

  ✓ term deposit at TBB pank;

 suretyship or guarantee granted by the third person;

 mortgage;

 possessory pledge;

 ✓ registered security over movables;

 pledge of securities;

 ✓ revenues into the current account with TBB pank.

4. When calculating interest, it is based on the year of 360 days.

For further information, please contact loan manager, by sending an e-mail to laenuhaldur@tbb.ee

Required documents

  • Loan application through the Internet

 Copy of the identity document

 Six-month account statement certified by the bank, if income is not received in TBB pank

 Documents confirming other possible sources of income

 Expenditure budget (only for a home loan applied for carrying out repairs)

In the case of collateral security:

 An extract from the relevant register or Land Register regarding the collateral

 Contract of sale, acceptance and delivery report, commercial lease contract, etc

✓ The decision of property owner in writing to provide assets as security (to secure performance of an obligation by an lessee)

 The notarized power of attorney to sign the guarantee contract, if the contract is signed by the authorized representative of the property owner

✓ The valuation report of collateral issued by an appraiser accepted by the Bank

 Insurance policy for benefit of the Bank, issued by the insurance company accepted by the Bank (to be issued after the conclusion of the guarantee contract)

In the case of suretyship /guarantee:

 Copy of registry card from Commercial register of a surety/guarantor

 Copy of surety’s/ guarantor ‘s articles of association

 If there is a supervisory board, resolution (consent) of a supervisory board to provide suretyship/ guarantee

 Surety’s/ guarantor ‘s audited annual report for the previous financial year, if auditing is mandatory pursuant to law

 Surety’s/ guarantor ‘s quarterly balance sheets and income statements of the current year

 Copy of the identity document of the private person –surety/guarantor or copy of the identity document of the representative of the legal person- surety/guarantor

✓ Application form for private person-surety

✓ Application form for enterprices-surety/guarantor

✓ Private person- surety ‘s six-month account statement certified by the bank if income is not received in TBB pank

The Bank has the right to request additional documents needed in order to evaluate the client’s solvency. The Bank has also the right to request original documents of submitted copies. If the documents have not been prepared in accordance with the requirements of the Bank, they will be considered as not presented. The Bank is not obliged to justify a refusal to provide loan. The originals of documents submitted to the Bank are to be returned to the client. All other documents submitted along with an application will be kept by the Bank.

Real estate valuers

Name Official name Registry code Site
1Partner Kinnisvara

Arco Real Estate AS

DTZ Kinnisvaraekspert

Domus Kinnisvara

ERI Kinnisvara

Kaanon Kinnisvara Teenused OÜ

LVM Kinnisvara

Ober-Haus Hindamisteenused

Pindi Kinnisvara

RE Kinnisvara

Simus Kinnisvara

Seven Kinnisvarakonsultandid OÜ

Tõnisson Kinnisvarakonsultant

Uus Maa Kinnisvarabüroo

Colliers International Advisors OÜ

Newsec Valuations EE

Ühinenud Kinnisvarakonsultandid

Aarete Kinnisvara

Lahe Kinnisvara

1PARTNER Kinnisvara Eesti OÜ

Arco Real Estate AS

Osaühing Kinnisvaraekspert

Osaühing DOMUS KINNISVARA

ERI KINNISVARA OÜ

Kaanon Kinnisvara Teenused OÜ

LVM Kinnisvara OÜ

OBER-HAUS HINDAMISTEENUSTE OÜ

Aktsiaselts Pindi Kinnisvara

RE Kinnisvara AS

OÜ Simus Kinnisvara

SEVEN KINNISVARAKONSULTANDID OÜ

Tõnisson Kinnisvarakonsultant OÜ

Osaühing KINNISVARABÜROO UUS MAA

Colliers International Advisors OÜ

Newsec Valuations EE OÜ

Ühinenud Kinnisvarakonsultandid OÜ

OÜ Aarete Kinnisvara

Lahe Kinnisvara Hindamine OÜ

11027723

11346894

10708639

10887990

10476241

10881504

10033331

10144929

10677258

10462629

10553527

10394023

10638376

10307231

11330404

11930446

11550241

11024541

14318125

www.1partner.ee

www.arcovara.ee

www.dtz.ee

www.domuskinnisvara.ee

www.eri.ee

www.kaanon.ee

www.lvm.ee

www.ober-haus.ee

www.pindi.ee

www.re.ee

www.simus.ee

www.7re.eu

www.tonisson.ee

www.uusmaa.ee

www.colliers.ee

www.newsecbaltics.com

www.upc.ee

www.aarete.ee

www.lahekinnisvara.ee

GUARANTOR`S CHECKLIST

Surety is a promise to fulfil financial obligations of another person or company (the borrower) on their behalf.

Provide surety only to a person or a company you know and trust.

Before providing surety:

✓ carefully consider if you are able to perform the obligations of the borrower

 carefully consider your ability to meet payments, and provide surety only for the amount that you can actually repay (the maximum amount of the guarantor’s liability)

 carefully familiarise yourself with the surety and the loan contracts prepared by the bank

 do not hesitate to contact the bank if you have any questions. Seek legal advice where necessary

When signing the surety contract:

 carefully listen to the bank employee’s explanations with regard to both the loan and the surety contracts

 do not be afraid to ask if something is unclear

 check that there are your correct contact details (address, phone number, email address) in the surety contract

When the surety contract is signed:

 be proactive and monitor how the loan contract is being carried out. If the borrower does not answer your questions, make sure you address these questions with the bank.

 always inform the bank of any changes to your contact details (address, phone number, email address). This is the only way you can be sure that important information reaches you in time

 carefully read the bank notifications and make sure you read all registered letters addressed to you

If the borrower fails to fulfil his/her obligations, the bank then gives you an opportunity to perform the obligation. Do not forget that you have committed yourself to the contract and may have to perform the borrower’s obligation. By performing the borrower’s obligations, you can avoid additional costs and litigation. You have the right to demand from the borrower compensation of any amounts paid by you on behalf of the borrower.

DO NOT FORGET – THE SURETY IS YOUR OBLIGATION TO PERFORM THE CONTRACT ON BEHALF OF THE BORROWER!

PLEDGER`S CHECKLIST

A mortgage means when the loan is not paid back, the bank has the right to claim the sale of your the apartment or house (with the land).

Before you give your consent to set up a mortgage:

 carefully consider if you are ready to take the risk of abandoning your own apartment or house if problems arise with regard to loan repayment

 decide whose obligations and what obligations in particular you are prepared to ensure

 you have the right to request draft contracts from both the notary and the bank – carefully study their content

 do not hesitate to contact the bank and the notary if you have any questions. Seek legal advice where necessary.

When signing the notarized contract:

 carefully listen to the notary’s explanations

 do not be afraid to ask if something is unclear

 make sure that the precise contract expresses exactly what you have agreed with the borrower and the bank.

When the contracts are signed:

 be proactive and monitor how the loan contract is being carried out. If the borrower does not answer your questions, make sure you address these questions with the bank

 always inform the bank of any changes to your contact details (address, phone number, email address). This is the only way you can be sure that important information reaches you in time

 carefully read the bank notifications and make sure you read all registered letters addressed to you.

Where the borrower fails to fulfil his/her obligations, the bank then gives you an opportunity to perform the obligation. mBy performing the borrower’s obligations, you can prevent the sale of the pledged apartment or house, as well as avoid additional costs and litigation. You have the right to demand from the borrower compensation of any amounts paid by you on behalf of the borrower.

The initial annual percentage rate of a home loan is 4,19% on the following (example) conditions:

 the amount of loan of €66 000 is paid out immediately and in full

 interest rate of 6 months’ Euribor + 4,0% per annum (as at 15.03.2019 the 6-month Euribor rate was (– 0,232%); under the terms of the contract, in case of a negative value, Euribor is considered to be equal to zero; Euribor may change every 6 months)

 contract fee of €660 is paid upon conclusion of the agreement

 the credit will be repaid as monthly annuity payments over a period of 9 years

The rate does not include costs associated with the establishing or insuring of collateral.