What is APR?

The Annual Percentage Rate (APR) represents the total cost of credit obligations calculated on the day of assessment, expressed as an annual percentage of the loan amount.

The APR is calculated in accordance with Cabinet Regulation No. 691 of 25.10.2016 “Regulations on Consumer Lending”, assuming, among other things, that the interest rate is defined upon signing the loan agreement and remains unchanged, that the loan is repaid according to the agreed schedule, and that the total loan amount is disbursed in a single payment.

What is Euribor?

Euribor (Euro Interbank Offered Rate) is the interest rate at which banks in the European Union lend funds to each other. It is a reference interest rate that changes daily and covers terms from one week to one year. The current Euribor rate and its changes can be viewed here.

What types of repayment schedules exist?

A mortgage can be repaid using either an annuity schedule or a linear (declining) schedule.

• Annuity schedule — the total monthly payment consisting of principal and interest remains the same during each period between interest rate changes.

• Linear (declining) schedule — the principal repayment portion is the same each month, while the interest amount decreases as the outstanding loan amount decreases.

• Insurance amount: not less than the market/reconstruction value

• Insurance period: from the date of acquiring property rights until the end of the Loan Agreement

• Accepted insurance companies: Compensa, BTA, Balta, Ergo, IF P&C Insurance

• Insurance compensation beneficiary: BluOr Bank AS

In cooperation with the state development financial institution ALTUM, support is available for home purchase and construction. More detailed information about the terms and support programmes can be found on the ALTUM website.

Available ALTUM Programmes:

• For young professionals (guarantee)

• For families with children (guarantee)

• Balsts subsidy programme

• For National Armed Forces soldiers (guarantee)

ALTUM provides a guarantee for families with dependent children up to 23 years old (inclusive) and for families expecting a baby, for the purchase or construction of a home, provided that the transaction amount does not exceed EUR 300,000.

Loan and Guarantee Conditions:

• The amount of the guarantee depends on the number of children in the family, including unborn children, as well as the location of the property.

If the property is located in Jūrmala, Riga, or surrounding municipalities (Mārupe, Olaine, Ķekava, Salaspils, Ropaži, Ādaži):

• 5–10% of the loan amount, up to EUR 10,000 if the family has one child (or is expecting a child)

• 5–15% of the loan amount, up to EUR 15,000 if the family has two children (or at least one child and is expecting another)

• 5–20% of the loan amount, up to EUR 20,000 if the family has three children (or at least two children and is expecting another)

• 5–30% of the loan amount, up to EUR 30,000 if the family has four children (or at least three children and is expecting another)

If the property is located outside Jūrmala, Riga, and surrounding municipalities:

• 5–30% of the loan amount, up to EUR 30,000 if the family has one child (or is expecting a child)

• 5–40% of the loan amount, up to EUR 40,000 if the family has two children (or at least one child and is expecting another)

• 5–50% of the loan amount, up to EUR 50,000 if the family has three children (or at least two children and is expecting another)

Energy-efficient properties

If you plan to purchase an A-class energy-efficient home or a nearly zero-energy building, the guarantee amount can be increased by an additional 5%.

• Bank financing up to 95%

Benefits of ALTUM Support Programmes

• State fee of 0.5% of the purchase amount for registering ownership rights in the Land Register

• Mortgage registration in the Land Register — free of charge

• The guarantee can be received again if the previously granted guarantee is no longer valid

ALTUM provides a guarantee for professionals with higher or vocational secondary education, up to 35 years of age, for the purchase or construction of a home.

Loan and Guarantee Conditions

• Guarantee up to 20% of the loan amount, but not exceeding EUR 50,000.

• Bank financing up to 95% when purchasing a home (up to 90% for construction loans).

• The guarantee may be received again if the previously granted guarantee is no longer valid.