Loan guarantees by KredEx enable purchases of energy-efficient housing


The Government of the Republic has approved a draft legislation under which KredEx will begin to issue housing loan guarantees also for purchases of energy-efficient housing and for the reconstruction of housing to be energy-efficient. To date, housing loan guarantees by KredEx have been available to young specialists, young families, tenants living in houses returned to their owners, and veterans of the Defence Forces or the Defence League.
Liisa Oviir, Minister of Entrepreneurship, said that it is important to steer people towards energy efficiency.

“When it comes to rendering housing energy-efficient and erecting energy-efficient housing, state support is crucial. Housing loan guarantees by KredEx enable people to improve their living conditions and save on energy costs,” Oviir said.

To be able apply for a loan guarantee for energy-efficient housing, a small residential building has to conform to the C energy label class, but one can also reconstruct one’s private dwelling to conform to the C class. When an apartment is purchased in an apartment building, the energy label class of the apartment building has to be at least C. The energy label class has to be proven with the energy label, the building design documentation in case of reconstruction, and energy efficiency calculations.

In case of loan guarantees for energy-efficient housing, the maximum guarantee amount will be raised to EUR 50,000 primarily due to the higher cost of the relevant private dwellings and apartments. In case of the other target groups for housing loan guarantees by KredEx, the maximum guarantee amount will continue to be EUR 20,000.

According to Lehar Kütt, CEO of KredEx, the purpose for issuing loan guarantees for energy-efficient housing is to rouse people’s interest in assessing the energy efficiency of housing when purchasing real estate and to raise people’s awareness about energy efficiency as well as to steer people towards choosing and building more energy-efficient housing. “A loan guarantee for energy-efficient housing will be issued for a person purchasing energy-efficient housing or reconstructing housing to be energy-efficient. This is the first financial service in Estonia that aims to promote purchases of energy-efficient housing,” Kütt said.