Housing Loans

Important! The credit granted is secured by a mortgage on immovable property; therefore, you can lose it if you fail to fulfil your obligations assumed by the agreement in a duly manner.


Loan recipients: private individuals of at least 21 years old.

Loan term: the maximum loan term is 30 years.

Loan currency: loans can be provided in euro.

Loan amount: housing loan can cover up to 80 percent of the value (price) of pledged property.

Loan interest rate: loan interest rate consists of the base interest rate (EURIBOR) and margin percentage which is established by the bank to each client individually.

Variable interest rate is established for the first time when loan funds are disbursed, and later it is changed every 6 or 12 months depending on EURIBOR of your chosen term.

Fixed interest rate for loan agreements is established on the day of agreement signing will be fixed in euro for the period from 3 to 5 years. Interest rate does not vary until the expiration of the agreed period, and upon its expiration, interest rate can be fixed again for a new period or changed to a variable base interest rate.

By choosing fixed interest rate with Luminor bank:

  • You will feel secure because safety is the main advantage of the loan with fixed interest rate. By insuring from possible interest rate growth in the future you will be certain about the amount of your monthly payments, i.e. monthly loan payments will remain unchanged during the whole fixation period, while guaranteed stable payments will ensure safety and security.
  • You will be able to plan your (household) finances easier since knowledge about your future payments in the longer period will allow an easier future planning and adjustment to emergencies. It is easy to forecast your finances 1 year ahead but it is a lot more complicated to do it for a longer period for which the fixed interest rate is usually established, i.e. for 3–5 years.

If required, fixed interest rates can be chosen for a part of the loan: then fixed interest rate would be applicable to one part of the loan, and variable rate to the other part.


Loan Repayment

You can choose loan repayment method between:

  • Fixed principal
    Loan part is repaid in equal instalments, while interest is paid for the unpaid amount of the loan.
  • Annuity
    Loan and interest are paid in equal instalments every month.

Loan Repayment Moratorium

Loan and interest are repaid every month. Loan repayment can be graced for a period up to 12 months. Grace period is calculated from the first day of payment. Loan repayment grace period can be applicable both at the beginning of the loan repayment and later (e.g., in a few years after the disbursement of the loan). Bank has to be provided with a motivated application to grace the loan repayment term. Loan is repaid and interest is paid every month on agreed day based on loan repayment schedule.

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Submission of loan application and other required documents to the bank

Loan application can be filled out at the nearest bank branch. When the application is filled out, you and your co-applicant (if you submit the application with another individual – spouse, etc.) must submit the following documents to the bank:

  • Passport or personal identity card.
  • Employment agreement and Bank account statement (not required if incomes received into account in the bank), which confirms receivement of last 6 months income.
  • Agreements of current financial liabilities (e.g., credits, leasing, guarrantees, etc.).
  • Other supporting the received income documents »
    • if you are self-employed – sole proprietorship registration certificate, financial statements of the sole proprietorship for the last two years, description of the sole proprietorship activity;
    • if you work under a business licence – business licence, business income and expenditure journal for at least 12 months, and income tax returns approved by the State Tax Inspectorate (VMI) for the whole period when the income under the business licence was received;
    • if you receive income under copyright contract – copyright contracts and account statements supporting this income for the period of at least one year;
    • if you receive income for the rent of real estate – rent agreements registered with the State Enterprise Centre of Registers;
    • other documents and certificates supporting official income received by you and your co-applicant.