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Mortgage loan

In the case of mortgage loan, you can decide how you will use the borrowed money.

You can start or promote your own company, renovate your home, buy real estate, go on a long trip, pay for your studies, cover your medical expenses, buy new kitchen furniture or home electronics, or invest it in something else you want or desire.

If you would like to consult our private loan manager before you fill in the application, contact us to make an appointment and we can have a discussion.
 

 

 

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Flexible solutions
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The calculation is approximate and may differ from the terms and conditions offered to you.

Flexible loan

You can use it as you wish, it is secured with real estate and the interest is considerably lower than that of a small loan.

Flexible terms and conditions

If you would like a grace period, repay the loan early or agree on other conditions, our loan manager will help create a tailor-made solution for you.

Quick and easy

We will quickly help each client find the affordable amount and the most suitable deadline. We will advise you on what to do to ensure that you can fulfil your wishes and that repaying the loan will not become a headache for you.

Accessible everywhere

You can submit the application any time online or at the nearest branch of the bank. If you would like to consult our loan manager before you fill in the application, contact us to make an appointment and have a discussion.



Apply for loan

Further information

  • The loan amount is €5000 – €100 000
  • The repayment term is up to 20 years
  • The interest rate is from 6 months’ EURIBOR + interest margin 4,5% per annum
  • The loan collateral is a mortgage over an immovable property
  • An applicant must be at least 21 years old and an Estonian citizen or a foreign national holder of a residence permit
  • The borrower may not be older than 75 years of age upon expiry of the loan term
  • Borrower’s minimum net income €550/per month in Tallinn and Harju County, €500/per month in Tartu and Tartu County or €450/per month in other areas
  • No current defaults in the payment default register

Documents required for applying for a loan

  • Loan application
  • Passport or ID card (with the residence or work permit) or driving license issued in the Republic of Estonia
  • If needed, a calculation for the use of the loan being sought
  • Account statements for the past 6 months for all the existing accounts, other documents proving earnings (tenancy agreements and the like)
  • Expert assessment of the collateral, prepared by a real estate firm accepted by Coop Pank

If necessary, the private loan manager may ask questions and request documents additionally.

By taking mortgage loan, it should be taken into consideration that the assets, serving as a guarantee for the loan, should be insured throughout the whole period of borrowing. So your peace of mind is also secured – if something happens, the losses will be compensated and it will be easier to overcome the consequences.

We work with the Estonian leading insurance company If Insurance, in cooperation with whom we provide you insurance.

Please call +372 635 3009 or fill in the form for concluding home insurance, and you will be contacted.

The benefits of If home insurance:

  • Every other home will be fixed within seven days
  • If’s home emergency insurance helps you with home emergencies round the clock, e.g. leakage from pipes or lock damage
  • In case you lose home keys or the lock fails, the new locks will be compensated without deductible and installation costs will be covered as well
  • Your portable items (e.g. computer, camera and bicycle) will have coverage across the European Union
  • In case your bank card is stolen or lost, the financial damage up to 1000 euros, caused by illegal use, will be covered

The provider of insurance service is If P&C Insurance AS. Please see the terms and conditions on www.if.ee and consult an expert by insurance phone +372 635 3009.

In addition to monthly loan repayments, allowance has to be made for additional expenses that result from taking out a loan

  • Fee for the conclusion of the loan agreement
  • Notarial and state fees for the conclusion of a notarised collateral agreement
  • Fee for an expert assessment of the collateral
  • Insurance of the collateral

The property serving as collateral has to be insured for the term of the loan against fire, water-related emergency, vandalism or natural disaster. For insuring assets, we accept all non-life insurance companies registered in Estonia and licenced by the Financial Supervision Authority and listed on the website of the Financial Supervision Authority.

Furthermore, in insurance matters an independent adviser / insurance broker may be contacted to assist with the identification of the insurance best suited for the interests of the policyholder.

Generally, on a mortgage loan interest and principal payments have to be made monthly. The bank withholds these from the client’s account on the dates agreed in the agreement and on the repayment schedule.

Two repayment schedules are available to choose from for the repayment of the loan

  • Annuity schedule, which has the advantage of monthly payments in the same amount but the disadvantage of higher interest costs
  • Schedule with equal principal repayments, which provides the advantage of lower interest charges compared to an annuity schedule yet has the disadvantage of higher monthly payments at the beginning of the loan term

The financial situation may change during the repayment of the loan. For example, in the event of a child born into the family or of loss of employment, earnings decrease. In this case, there is the option of seeking a grace period in the repayment of the loan and pay the bank interest only during that period.

Furthermore, there may arise the option of repaying the loan early in part or in full. If the bank is notified about this wish 3 months in advance, no additional fee is charged for the repayment of the loan.

The provisional annual percentage rate on a mortgage loan is 7,14% on the following sample terms: credit amount €12 200, repayment over 20 years in 240 monthly annuity payments, agreement fee €183, interest not fixed 6 months’ EURIBOR + margin 6,65% per annum (as at 28 January 2019, the 6 months’ EURIBOR is -0.237% per annum; the negative value of EURIBOR is equated to zero when interest is calculated; EURIBOR may change every 6 months), account management fee €0,5,  total credit amount  €22 392,72 and total of repayments €22 089,72 .

The rate is calculated on the assumption that the credit amount is used in full immediately and that its principal and interest will be repaid in monthly annuity payments. When credit is received, an insurance agreement needs to be concluded for the collateral. The rate does not include any expenses related to providing or the collateral. Before you conclude an agreement, we advise you to review the terms and conditions of the financial service and, if necessary, consult a specialist.

For you, a mortgage means that if the loan is not repaid, the bank will be entitled to sell the apartment or house, including the land, owned by you.

If the borrower is not performing their obligations, the bank will contact you and provide you with an opportunity to fulfil the obligation.

By fulfilling the borrower’s obligation, you can prevent the sale of the pledged apartment or house as well as avoid incurring any additional costs or litigation. You are entitled to require the borrower to indemnify any amounts paid by you.

Before you consent to the creation of a mortgage

  • Consider carefully whether you are prepared to risk and give up an apartment or house owned by you if there are any problems with the repayment of the loan.
  • Decide whose and what obligations you are prepared to guarantee.
  • You are entitled to request, from both the notary and the bank, drafts of the agreements to be concluded. When you receive them, review the content of the agreements carefully.
  • Do not hesitate to contact the bank or the notary’s office to find answers to any questions that have come up. Use legal assistance, if needed.

When you are about to sign a notarised agreement

  • Listen to the notary’s explanations very carefully.
  • Do not be hesitate to ask if anything remains unclear.
  • Check to make sure that the agreement states specifically what you have agreed upon with both the borrower and the bank.

Once agreements have been signed

  • Be proactive and take an interest in how the performance of the loan agreement is proceeding. If the borrower does not reply to your questions, make sure to contact the bank.
  • Always communicate any changes in your contact details (address, telephone number or e-mail address). Only in this way you can be certain that the necessary information will reach you.
  • Carefully review any notices sent by the bank and make sure to collect any registered letters.
1Partner Kinnisvara OÜ
1partner@1partner.ee
www.1partner.ee
Arco Vara Kinnisvarabüroo AS
hindamine@arcovara.ee
www.arcovara.ee
Domus Kinnisvara
info@domuskinnisvara.ee
www.domuskinnisvara.ee
DTZ Kinnisvaraekspert
tallinn@kinnisvaraekspert.ee
parnu@kinnisvaraekspert.ee
tartu@kinnisvaraekspert.ee
www.dtz.ee
ERI Kinnisvara
eri@eri.ee
www.eri.ee
Kaanon kinnisvarabüroo OÜ
info@kaanon.ee
www.kaanon.ee
OÜ LAHE Kinnisvara
lahe@lahekinnisvara.ee
www.lahekinnisvara.ee
LVM Kinnisvara OÜ
tallinn@lvm.ee
parnu@lvm.ee
kuressaare@lvm.ee
tartu@lvm.ee
www.lvm.ee
Ober Haus Hindamisteenuste OÜ
info@ober-haus.com
www.oberhaus.ee
Pindi Kinnisvara OÜ
tallinn@pindi.ee
www.pindi.ee
RE Kinnisvara AS
info@re.ee
www.re.ee
Tõnisson Kinnisvara OÜ
info@tonisson.ee
www.tonisson.ee
Uus Maa Kinnisvarabüroo OÜ
uusmaa@uusmaa.ee
www.uusmaa.ee
 

The bank usually applied the base interest rate of Coop Pank (KPB) to long-term loans (home loan, mortgage loan) from 1 May 2008 to 18 April 2012.

KPB is quoted and published by Coop Pank on its website every banking day, taking into account money market interest rates and the current state of the economic environment in Estonia and worldwide.

The base rate is more stable compared to individual market interest rates, since it takes into account more comprehensively how the economic environment and interest rates are shaped, follows the market situation at a calm pace and is not swayed by temporary fluctuations in the individual interest rates.

KPB is variable interest. For the client, Coop Pank’s base rate is fixed for three months at a time, changing if KPB has changed during the three months after it was fixed last under the agreement.

Currently, the base rate is 1.20%.

Base rate history

Starting date End date Base rate
07.07.2016   1,20%
18.04.2016 06.07.2016 1,30%
12.02.2016 17.04.2016 1,40%