Financing
How big a credit can I receive?
As a loan for repairing your flat, you can receive up to 85% of the cost of your flat (without additional money investments). If you have decided to build a house, you can receive a loan in the amount up to 85% of the market value of the future real estate, i.e. the cost of the real estate upon completion of construction works. In this case, the loan will be paid in instalments in accordance with the construction process.
Minimum loan sum – 1 500 EUR.
What will the interest rate be in my case?
The interest rate depends on many factors: chosen currency, term of inter-bank rate, loan sum, your income, loan term and whether it is flexible or fixed.
What bank and additional charges shall I take into account arranging a mortgage loan?
The bank charges only a single payment for preparation of monetary funds (price list). This payment can be executed from the loan sum. However, it is necessary to take into account additional non-bank related payments.
Evaluation of real estate – 100-200 EUR LVL
clerical fee; 0.1% of the loan sum – state fee for loan registration. These are payments for registration at Land Registration Book. Payments related to State land authority are set by the Ministry of Law and have a tendency to change regularly.
Notary fee – from 20 EUR
Insurance – policy price depends on the property insured.
How fast will a loan application be considered? How long takes arrangement and allocation of a loan?
Decision on loan allocation is usually taken within 1-4 working days. Upon approval of a loan with the customer, agreements are approved and singed. Changing of proprietary rights at Land Registration Book can take up to 4 weeks, mortgage registration – 1 week (usually these procedures are done at the same time). After the mortgage registration and arrangement of insurance (the bank offers IF Latvija insurance that can be arranged at your consultant), money, as a rule, is transferred to a customer’s bank account within 1 working day.
What income do I need to receive a loan?
The monthly loan payment should not exceed 35% of the monthly income of a loan-subscriber. Income of other family members as well as income of guarantors is taken into account.
What are RIGIBOR, LIBOR and EURIBOR?
RIGIBOR is an inter-bank rate – an arithmetic average that is calculated from the quotations of interest rates of the largest Latvian banks. Inter-bank rates are calculated daily for the certain period, for example, for 1 week, 1 month, 3 months, etc. LIBOR and EURIBOR are also inter-bank interest rates calculated by London Bank Association and Central European Bank. These inter-bank rates reflect the objective money value on the market.
Inter-bank rates are the same for all the customers in Latvia.
What do you need to do in case the decline in household income creates a danger to timely repayment of a credit?
No matter what are the reasons for decline of your household income, you need to inform the bank promptly, especially when you might experience problems with making the monthly payments. The bank will offer the best solution to avoid the critical situation. There are several options allowing postponing or reduction of the monthly payments. It is important that you state your real financial situation, so we could together find the most appropriate option. The bank is interested in helping its clients, because it creates successful partnership and helps to avoid losses. Credit debts hurt both – the client and the bank!