Mortgage lending in Latvia.
In Latvia, a practice of mortgage lending is pretty widespread. The loan amount in different cases can be up to 80% of the project cost, and the minimum annual interest rate ranges from 3% to 5%. You must be prepared for that if you are a non-resident of the country, then you have to justify and declare the sources of your income. To this end, it is desirable to prepare in advance all the bank statements, as well as make sure that you have the documents confirming the legality of your income and the absence of claims to you by the public authorities in your country.
Get a loan will be much easier if you are a client in a long period of one of the operating banks in Latvia.
Terms of mortgage loan can be considered as an example of one of the largest banks in Latvia – Citadele.
Terms of the mortgage loan for the purchase of real estate:
- loan amount – up to 80% of the market value of the property;
- loan repayment period – up to 35 years
- favorable interest rates: in euros or dollars – from 4.65% + 6M Euribor / Libor;
- personalized service.
Buying property worth 170,000 euros, may receive a loan in the amount of 136,000 euros, the interest rate per year is – 5% *.
The cost of customer loan processing:
- for the loan processing fee – 2 040 Euro (1.5% of the bank loan);
- Insurance of real estate for the year – 110 euros;
- State and clerical duties Land Registry for registration of pledge – 150 euros.
Payment on the loan with 35-year maturity is 686 euros per month.
Necessary documents for the application process for a loan:
- Profile of Citadele Bank’s customer, an application for a loan, an application for opening an account;
- Document confirming your income, such as: a statement of account for the past 12 months from a bank, certificate of employment;
- Evaluation of the acquired property, made from list of Citadele Bank companies;
- In some cases, Citadele Bank may request additional documents, such as an application for the provision of a guarantee, a draft agreement of intent, or a purchase draft contract of the property.