Previously, a minimum 10% self-financing requirement applied to state-guaranteed housing loans; however, starting today, March 1, families with many children can apply for a KredEx secured home loan with only half of the previously required self-financing requirement of 5%.
With the new conditions, the state wants to encourage families with many children to buy a house instead of renting it. A large family is a family with at least three common children. It also applies to a parent with three children or to cohabiting families in which one of the parents has at least three children.
Catlin Vatsel, head of the private finance department at LHV, said families with many children have often struggled to buy a house due to the need to increase their self-financing.
“Buying and owning your own home has a special meaning for everyone, especially for families with children. For families with many children, it is often saving the required deposit that has delayed the dream of owning a home, as the amount paid for a rented home is usually higher than loan repayments, making it difficult collection of the deposit. Half the self-financing requirement makes it easier to collect the deposit, which is welcomed by customers. We are happy to help make their dreams come true with our best expertise and fastest service,” said Vatsel.
For example, this means that if you previously had to pay a minimum of 12,000 euros in self-financing when buying a house costing 120,000 euros, now with a KredEx guarantee, a down payment of 6,000 euros is sufficient.
For families with a child up to 3 years old, the LHV home loan is also more flexible with the possibility of taking up to 12 months of grace period if they wish, so that they can plan their life more freely. . “We encourage parents of young children to consider the grace period as an option, as additions to the family result in temporarily higher costs. In addition to buying children’s supplies, you may need to replace your car or repair your house, or you may need to cover child care costs. In this case, it is good to know that you can temporarily suspend repayments of your LHV home loan, if you wish,” Vatsel added.
The LHV home loan stands out in the market for its flexibility and speed, since the initial loan offer is sent to the client within 24 hours. In addition, there is a green mortgage for single-family houses and apartments in energy class A with a favorable fixed interest rate.
LHV Group is the largest domestic financial group and capital provider in Estonia. The main subsidiaries of the LHV group are LHV Pank, LHV Varahaldus and LHV Kindlustus. LHV employs over 650 people. At the end of the year, LHV’s banking services are used by 321,000 customers, the pension funds managed by LHV have 140,000 active customers and LHV Kindlestus protects a total of 143,000 customers. LHV’s UK branch provides banking infrastructure to 180 international financial services companies, through which LHV’s payment services reach customers worldwide.