Housing Loan

Housing loan is a loan for either purchasing, building or renovating of housing. You should first study the housing loan terms and conditions, established by Versobank, and consider all the risks, resulting from taking a loan, before you decide to take out a loan.

Terms and Conditions

• Maximum loan repayment period is 30 years.
• Interest rate 6 month Euribor + margin or the Bank’s Base Interest Rate + margin.
• Contract charges total to 1% of the loan amount and 63 euros, as minimum.
• Loan disbursement period can be extended up to 12 months.
• The proportion of self-financing will depend on the specific loan funded project. If the surety is lodged by KredEx, 10% self-financing will be sufficient. Moe specific information is available from the website of KredEx Foundation.
• The purchased, built or renovated object is usually suitable as the principal security. The need for additional security usually depends on the specific loan funded project.
• The security must be appraised by an appraiser, acceptable for the bank. You will be required to ensure he object, used as loan security, according to loan contract terms and conditions.
• Loan will be usually repaid on monthly bases, under annual annuity repayment schedule, meaning that the repayment amounts, with interests accrued, will be equal every month.
• Loan repayments will be executed by the bank, debiting your bank account in Versobank AS by the amount specified in agreed dates.
• Loan servicing payments may not, by general rule, exceed 40% of proven net income of the applicant(s). In case of a joint loan application, net income of both applicants will be accumulated.
• If appropriate, you can apply for up to 12month grace period. You will only pay interests accrued during the grace period.

Requirements to Loan Applicants and Co-Applicants

• Loan application can be filed by citizens of the Republic of Estonia and citizens of a foreign country who hold a permanent or fixed term residence and work permit and have supplied the bank with evidence, regarding their income.
• Requirements established to natural persons-surety are the same as those applicable to loan applicants.

Expenses Resulting from Taking a Housing Loan

• Real estate appraisal
• Contractual charges
• Notary’s charges and state fees
• Property insurance
• Surety charges, applied by KredEx, if KredEx surety is used

The annual percentage rate of a housing loan is 2.983% per annum on these sample terms: loan amount € 30 000, variable interest rate 6-month Euribor + 2.5% per annum (as at 13 June 2014, the 6-month Euribor was 0.326%; the Euribor rate specified in the contract may change every 6 months) and a contract fee of € 300, paid upon concluding the contract.

The rate is calculated on the assumption that the loan amount is used in full immediately and that its principal and interest are repaid in monthly annuity payments over 30 years. The rate does not include the costs of collateralisation or insurance.

Assuming the above, the total amount paid by the consumer is € 45 066.12, with a monthly payment of € 124.35 and a total of 360 repayments.