According to Mirja Adler, the head of the Housing Division of KredEx, by using the housing guarantee it is possible to obtain a loan of up to 90% of the value of the guarantee property. „When taking a loan from the bank the share of self-financing is larger, at today’s terms 30%,“ Adler said.

 

„The housing loan guarantee can be used, if the loan recipient belongs to a target group of young families, young specialists or tenants of restituted houses. With the guarantee of housing loan with a KredEx guarantee it is possible to buy a flat, house, plot of land or a summer cottage. The purpose of buying a plot of land must be the construction of a house and in the event of a summer cottage, the rebuilding of the cottage for permanent living,“ Adler added.

 

„Even though DnB NORD Bank has tried to keep the self-financing of their housing loan at 20%, according to our evaluation there are many customers in the market, for whom it is difficult to acquire a home not because of insufficient solvency, but due to high self-financing requirement of banks. Additional guarantee by KredEx that helps to decrease the self-financing to 10% makes it possible to buy a home also for those that have so far been put to hold due to the lack of down payment,“ the Retail Banking Manager of KredEx Catlin Vatsel said.

 

During the first 6 months of year 2009, a total of 326 housing loan guarantee agreements of KredEx have been concluded, the guaranteed amount being 53,272,065 kroons and the loan amount 276,722,024 kroons. The largest number of loan guarantees were those for a young specialist - 166 agreements totalling 27,456,204 kroons. 160 loan guarantees for young families were issued totalling 25,815,861 kroons. The largest number of housing guarantees of KredEx were issued by Nordea Bank- 133 agreements, guarantee amount 22,451,054 kroons and loan amount 125,914,446 kroons.

 

It is possible to apply for the housing loan guarantee of KredEx from the following banks - SEB Bank, Sampo Bank, Nordea Bank, Eesti Krediidipank, Krediidipanga Liisingu AS, Parex Bank and DnB NORD Bank.

 

DnB Nord Bank belonging to one of the largest banking group of the Nordic countries operates in addition to Estonia also in Finland, Denmark, Poland, Latvia and Lithuania. DnB NORD Group has 165 offices and 882,000 customers. The mother banks of the Group are the largest banks of Norway and Northern Germany DnB NOR and NORD/LB. The bank operates in the Estonian market from the spring of 2006, and today offers all main financing services both for private and business customers.