Housing loan guarantee



The housing loan guarantee is meant for people who desire to take a loan for buying or renovating housing and seek to reduce their down payment obligation. The housing loan guarantee makes it possible to buy an apartment, house, plot of land or summer cottage. In such a case, the purpose of buying a plot must be the construction of a private house and, in the case of a summer cottage, renovation of the summer cottage for year-round living.


  • The KredEx guarantee allows a loan to be obtained with 10% self-financing.
  • With at least 10% self financing, there is no need to use additional collateral.

For who?

Pere logo

private and family

Service is suitable if

  • you want to buy a home
  • you want to build a home
  • you want to reconstruct your existing home
  • you have no additional guarantee and wish to reduce the initial home loan contribution

Important conditions

Key conditions:
  • If a loan applicant who belongs to the target group holds a temporary right of residence or temporary residence permit in Estonia, the granting of a housing loan guarantee is only permitted on the condition that the validity of the temporary right of residence or temporary residence permit of the individual, by virtue of whom membership in the target group exists, is equivalent to or longer than the estimated date of expiry of KredEx’s liability.
  • To apply for a housing loan and guarantee from KredEx, please contact a bank. The whole loan and guarantee application process goes through the bank. There is no need to contact KredEx separately.
  • At least one loan applicant who wishes to use a KredEx housing loan guarantee must belong to one of the target groups
  • Self-financing of a minimum of 10% of the loan collateral value
  • The amount of the loan guarantee is up to 24% of the loan collateral value, but not more than 20,000 euros. Up to 50,000 euros in the case of the target group consisting of people buying an energy-efficient home or renovating a home to increase energy performance
  • There is no limit on the loan amount
  • Conditions for the repayment schedule of loans with a tern of more than 30 years: The age of the borrowers at the end of the loan term is not more than 70 years and the collateral property was built or completely renovated in the last 10 years
  • The guarantee fee of 3% of the guarantee amount is to be paid in a single instalment upon signing of the agreement
  • a grace period is provided upon the birth of a child until the child turns two years of age or, in the case of an existing child, not past the child’s second birthday
  • The housing to be purchased using a KredEx loan guarantee does not have to be the first home to be bought, but only one KredEx housing loan guarantee may be in use at one time.
  • The borrower must be the owner and user of the housing being purchased or renovated. It is also permitted to purchase housing that will be jointly owned with a spouse or a co-borrower.


Good to know

  • Assets purchased using the guarantee may not be rented out
  • Application for the guarantee takes place through a bank
  • The property that serves as collateral must be insured

Application process

Young family target group

A young family is defined as a parent or parents raising a child up to and including 15 years of age. A guardian is also considered a parent.

Young specialist target group

A young specialist is a person up to and including the age of 35 years who has acquired higher education, secondary specialised education or a vocational secondary education (on the basis of basic education or secondary education), and who meets at least one of the following conditions:

  • an employment contract, service agreement or management board member’s agreement has been signed with the person, and if a probationary period is applied, the probationary period must have ended;
  • The person has been appointed to a position on the basis of law, and if a probationary period is applied, it must have ended;
  • The person is registered in the Commercial Register or with the Tax Board as a sole proprietor (FIE), and has operated as an entrepreneur for at least one year.

Target group consisting of people buying an energy-efficient home or renovating a home to increase energy performance

People buying or building an energy-efficient home or renovating a home to increase energy performance. Requirements applicable to energy-efficient homes:

  • Upon acquiring an energy efficient home, the energy performance class of a single-apartment dwelling or building with two or more apartments in which an apartment is being purchased must be at least C.
    The corresponding energy label must be compiled starting 3 May 2013.
  • In the case of building a new energy-efficient dwelling or renovating a dwelling of part thereof, the energy performance value class achieved must be at least C.

Target group consisting of Defence Forces or Defence League veterans

Veterans or persons who have been in service in the defence Forces or Defence League, who have been on a foreign mission or being injured while in service in Estonia.

Target group consisting of tenants living in residential space returned to its pre-war owners

Tenants residing in residential space returned to pre-war owners include the following individuals who have lease agreements in residential spaces that were illegally expropriated by foreign regimes and restored to their owners in the course of property reform:

  • tenant
  • the tenant’s spouse or common-law domestic partner
  • an adult family member who lived with the tenant and with whom a loan agreement was entered into in connection with the death of the tenant
  • an adult family member of the tenant
  • Tenancy status may be substantiated with a certificate from the Population Register or by the lease agreement
  • The lease agreement must be valid at the moment at which the credit is applied for
  • cohabitation of a family member may be substantiated with a certificate from the Population Register or by the lease agreement
  • If the residential space used on the basis of the lease agreement is not being purchased, the borrower and persons residing with the borrower must vacate the residential space within three months of the conclusion of the loan agreement

The owner of the residential space, the tenant and all adult family members residing with the tenant must enter into a written agreement for termination of the lease agreement and vacating of the residential space.

To apply for the housing loan guarantee, contact a bank. The bank will organize the guarantee and later reporting.

Contact us

Kristo Hütt

Kristo Hütt

Client Manager

kristo.hutt [at] kredex.ee
Aire Oolup

Aire Oolup

Client Manager

aire.oolup [at] kredex.ee