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Volume of housing loan guarantees by KredEx has increased by one-third

05.08.2016

In the first six months of this year, 1280 agreements in the total sum of EUR 84.3 million were concluded to purchase a home with a housing loan guarantee from KredEx. Year–on–year, the number of agreements has grown by more than 32% and the total amount of guaranteed loans by nearly 44%.

Whereas in the first half of 2015, KredEx issued housing loan guarantees in the amount of EUR 7.9 million, the value of the guarantees during the same period this year is EUR 11.3 million. In the first half of the year, guarantees were used by 561 young families, in the amount of EUR 4.9 million; 699 young specialists, in the amount of EUR 5.9 million; and 7 veterans of the Defence Forces or the Defence League, in the amount of EUR 49,360. By comparison, the first half of last year saw the conclusion of 967 agreements; in other words, the number of agreements has grown by as much as one-third in the space of a year. In the second quarter KredEx loan guarantees were also made available to people purchasing or constructing energy efficient housing or reconstructing their existing home into an energy-efficient building. This opportunity was used by 13 families in the second quarter, in the total sum of EUR 382,080.

According to Triin Reinsalu, Head of the Housing and Energy Efficiency Division at KredEx, the increase in guarantee volumes is due to the market, which is more active than previously. “We can see that the housing market has become active, with people looking for opportunities to improve their living conditions, and our housing loan guarantees are of great help in this,” Reinsalu reasoned. She added that ever more consideration is being given to energy efficiency when a home is being purchased. “Since April, we have also been providing housing loan guarantees for purchasing or erecting energy efficient housing or reconstructing housing to make it energy efficient. This is the first financial service in Estonia that aims to promote purchasing and construction of energy-efficient housing,” said Reinsalu.

In the first half of the year, the average amount of a loan taken out with a KredEx guarantee was EUR 65,852. Based on the number of agreements concluded, housing loan guarantees have been used most often for acquiring homes in Harju County 54% (including 72% in Tallinn) and in Tartu County 15% (including 56% in Tartu). The guarantee has been used least often in Hiiu (0.07%), Lääne (0.7%) and Põlva (0.7%) counties. Housing loan guarantees were mainly used to purchase apartments (83%) and houses (15%); the remainder were used for the renovation or construction of living premises.

KredEx has been issuing housing loan guarantees since 2000. Since then, 26,164 households have upgraded their living conditions with the help of KredEx; of those, 14,984 are young families; 11,072 are young specialists; 62 are lessees living in restituted houses; 33 are veterans; and 13 are purchasers of energy-efficient housing. As at the end of the second quarter, the portfolio of KredEx housing loan guarantees totalled EUR 42.2 million.