Home Loans and Mortgage Loans

Swedbank‘s home loans: a sound partnership

Choosing a home loan or a mortgage loan offered by Swedbank will make settlement in your new home easier, and you will have a reliable financial partner throughout the loan term.

You can get response concerning a mortgage loan even without having to go to the bank.

Click on the mortgage loan calculator

Fill in an application

Get a response


Special offer! If you submit your application on a mortgage loan in the Internet Bank, you will be entitled to a 40% reduction on the new mortgage loan agreement administration fee. The reduction is calculated based on the rates applicable at the moment of the signing of the agreement. Reductions are not cumulative.
If you want to take advantage of this offer, you must submit your application between 06 -11-2017 and 31-01-2018.

Home Loan Home Equity Loan Mortgage Loan with State Support
Purpose Home loans are designed for people who intend to buy, build or renovate a flat or a house, or to buy a land plot and build a house on it. Home Equity Loans are designed for people who intend to renovate a flat/house, to build/reconstruct outbuildings, or to buy a land plot or a farmstead. Mortgage Loans with State Support are designed for meeting the housing needs of persons referred to in the Republic of Lithuania Law on the State Support for Purchasing or Renting a Home, i. e. for the purchase/building of a home or the reconstruction of a home in order to adapt it to the needs of a disabled person. A 10% or a 20% subsidy can be used for paying of part of the home loan or part of the deposit.
Fill in application Fill in application Fill in application
Application by a Co-Borrower or Surety

Main terms

  • The loan amount depends on the income of your household, current financial obligations, and the value of the mortgaged property;
  • The loan repayment term is up to 30 years;
  • There are several loan repayment methods.

Loan conditions

  • Depending on the loan amount, your income after tax must be at least EUR 350 per month, or from EUR 724 per month if the loan is made to co-borrowers;
  • Mortgage of an immovable residential property is required.

Useful information

  • Home Loans and Home Equity Loans. General Terms and Conditions Download
  • Mortgage Loans with State Support (from 2006) and Home Loans Insured by UAB ‘Būsto paskolų draudimas‘. General Terms and Conditions Download
  • List of independent property valuators Download
  • General information about Mortgage loans Download
  • Additional Conditions for Mortgage loans with state support

    • Income in the calendar year and the value of property must not higher than the following amounts set by the Government of the Republic of Lithuania:

      • single person: net annual income EUR 8,976, property EUR 13,158;
      • family of two or three persons: net annual income EUR 12,546 per person, property EUR 26,724 per person;
      • family of four or five persons: net annual income EUR 15,096 per person, property EUR 35,598 per person;
      • family of six or more persons: net annual income EUR 2,550 per person, property EUR 8,466 per person;
    • First housing purchase (loans for the purchase of a flat/house);
    • Maximum loan amount:

      • EUR 53,000 – for a single person;
      • EUR 87,000 – for a family of two or three persons;
      • EUR 35,000 – for the home reconstruction irrespective of the person‘s family status.

    Who is entitled to receive a Mortgage loan with state support?

    Families and single persons entitled to the State support under the Republic of Lithuania Law on the State Support for Purchasing or Renting a Home can receive a loan partly financed by the State.

    Such loans offered by banks or other credit institutions are governed by the Procedure for the Making of Home Loans Partially Financed by the State and for the Subsidising of the Home Loans Partially Financed by the State, which also sets the requirements for the income and property of individuals entitled to the support and the mechanism of the making of loans of this type.

    Required documents

    An individual wishing to receive a loan partially financed by the State has to submit a certificate (original) issued for this purpose by a municipality in which the individual has declared his/her place of residence, stating that the individual is entitled to the support, and other required documents. Please click here for information about the documents required. The certificate issued by a municipality has to be delivered to the Bank within 15 days from the date of the certificate.

Main steps in receiving a mortgage loan

Already decided on buying your first home or changing the current home? This Guide will provide you with full information about the home acquisition and will lead you, step by step, from a dream about a cosy home of your own to its threshold.

  • 1. The very beginning. Do you know your borrowing opportunities?

    Buying a home is one of the most important decisions in life. Therefore, before to starting to look for a new home, you should evaluate your financial position and prospects objectively.

    Calculate your income, assess your costs

    You have to think about how much money you would like to and would be able to spend on a monthly loan repayment. Assess your income and its stability carefully; only regular income has to be included in the calculation. Then calculate your expenses, both current and potential, including the current liabilities.

    Using this calculator you can estimate your opportunities for getting a home loan. Our specialists are ready to help you to make the right decision. Call us 1884 in order to get more information remotely or register for a visit.

    Are you thinking about the future?

    Maybe you are planning to marry or to have a child? Or change your lifestyle? What would you do if you income decreases? Try to think about different life situations and potential costs and actions.

    A well-thought balance of income and expenses = peace of mind

    Your monthly financial obligations (including the future monthly home loan repayment) should not exceed 30 to 40% of your monthly income.

    In addition, consider saving ways and opportunities so that, in case of unplanned expenses or an unexpected decrease in income, you can still enjoy the quality of life, and your financial liabilities do not become a heavy burden.

  • 2. Valuation of the property to be mortgaged

    Determine the value and mortgage

    You will have to mortgage the land plot being bought, the house being built, reconstructed or redecorated, or another immovable property to the Bank. Mortgage transactions require to determine the market value of the property to be mortgaged.

    Who performs the property valuation?

    The value of any property to be bought and mortgaged must be determined by independent property valuators. Please click here for the updated list of independent property valuators.

    When property valuation is not required?

    In some cases when the property is bought from one of our partners no valuation is required. Please click here for the immovable property offers by Swedbank‘s partners.

    What is the cost of property valuation?

    The Bank can order a property valuation for you, or you may contact a property valuation agency yourself. Normally the valuation is completed within 1 to 5 working days after ordering it.

    The valuation cost depends on:

    • The rates applied by the property valuation agency;
    • The scope of valuation work;
    • The condition, individual characteristics and location of the property;
    • When do you wish to receive the valuation report.
  • 3. Complete the application and submit the requisite documents

    How can I submit an application?

    Prior to making a loan we always assess financial position of the borrower and his/her family. We seek not just to make the loan but also to become your financial advisor assisting you in the successful use of the opportunities provided by the loan.

    Upon deciding on the home loan, please click here to complete the application online, contact us by phone 1884 or visit any branch of the Bank.

    Required documents

    We will ask you to provide the specified documents with your loan application.

    If you are married, the same documents will have to be submitted by your spouse. The Bank reserves the right to request additional documents.

    Take care of your family by choosing the Secured Home Loan

    If you conclude an agreement on Secured Home Loan, in case of your death or severe disability your family will remain with the property rather than the debt. The Secured Home Loan is a life insurance service provided by Swedbank Life Insurance SE Lithuania Branch.

    What are the advantages of this service?

    • In case of your death or severe disability your family will remain with the property rather than the debt;
    • The service can be chosen by several co-borrowers or persons standing surety;
    • The insurance cover will take effect on the date of signature of the agreement.

    What is the cost of this service?

    The size of the insurance premiums depends on the credit balance, the sum insured selected by you for your life insurance, the risks determined according to your age, health condition etc. You can estimate the amount of the insurance premium using the calculator of the Secured Home Loan Service.

    Please click here for the insurance rules, service rates and other terms and conditions

  • 4. The Bank takes the decision

    In standard cases we will take a decision based on the information provided by you within 48 hours. You will be notified by telephone or electronic mail to your convenience.
  • 5. Entering into the loan agreement

    The loan agreement with the bank is available, provided:

    • you have chosen a property for purchase already;
    • you hold a decision by the bank to grant you a loan;
    • you have opened a bank account (if you had none before) or an account of limited use, which the Bank will use to deduct loan instalments on a monthly basis.

    Signing the agreement

    Once we take a favourable decision on granting you a credit, you will be provided with a standard credit information form (SI). This form also serves as a binding agreement to grant you a loan. After receiving the credit proposal, you will have 30 calendar days to consider whether you accept the credit or not.

    You can sign the agreement at your convenience, after agreeing on the date and time of the meeting with a manager. If you are buying a property jointly with your spouse, a co-borrower or a surety, they must arrive to the Bank together with you to sign the agreement. If a co-borrower or a surety has a spouse, they must also arrive to the Bank to sign the agreement upon presentation of a personal identification document.

    Administration fee

    Once you sign a loan agreement, the Bank, within three business days, will deduct a one-off administration fee from your account.

    You will have an option to withdraw from the loan agreement within 14 calendar days after the signing of the agreement. If you intend to withdraw from the loan agreement you should notify the Bank in a way specified in a standard credit information form (SI) or the general part of the credit agreement. In this case you will have to repay the used credit and settle other payments (including interest accrued) under the credit agreement within 30 days after submitting your withdrawal from the credit agreement.

    Useful information

    • Home Loans and Home Equity Loans. General Terms and Conditions Download
    • Mortgage Loans with State Support (from 2006) and Home Loans Insured by UAB ‘Būsto paskolų draudimas‘. General Terms and Conditions Download
  • 6. Signing the property sale/purchase contract

    The property sale/purchase contract will be signed at a notary‘s office. Please have the following documents with you:

    • a passport or a personal ID card;
    • the loan agreement.

    Prior to signature of the property purchase and sale agreement:

    • Agree on the purchase price with the seller of the property;
    • If you are buying part of a house/flat, set the conditions of use of the property, or familiarize yourself with the conditions already set;
    • Inform the seller that the Bank will transfer the loan amount after the mortgage of the property to the Bank.

    Important! The property purchase and sale agreement must contain a clause permitting the mortgage of the property to Swedbank, AB.

    Notarial certification fees

    Notary‘s fee for the certification of a sale/purchase contract accounts for 0.45 % of the price of the property but no less than EUR 28.96.

    • Decide which party to the agreement (you or the seller) will pay the notarial fee to the notary (normally the fee is equally divided between the buyer and the seller);
    • Verify that the property you are buying has not been mortgaged;
    • Verify that the seller holds an energy efficiency certificate for the property.

    This fee does not include other fees payable (such as the fees for checking the legal status of the property in the Mortgage Register, Register of Property Seizure Acts etc.).

  • 7. Registration of title to the property with VĮ Registrų centras

    Title to the property has to be registered with the Register of Immovable Property. The application for registration is submitted through the notary certifying the sale/purchase contract.

    You have to select the time limit for registration of the property (1, 2, 3 or 10 business days). Upon registration you will be issued an extract from the register as a proof of title. The rate of the fee for the registration of title and the issue of the certificate will depend on the type and average market value of the property as well as the registration term selected by you – the shorter the term, the higher the fee.

    Click here to find more information about VĮ Registrų centras fees

  • 8. Obtaining a certificate for the mortgage agreement

    To sign a mortgage agreement, a note of the adjustment of details in the Real Property Register and Cadastre, or simply a certificate, has to be obtained. The certificate is ordered by a notary public who is to certify the mortgage agreement. Normally, a certificate is issued within 3 business days. In certain cases the term may be shorter – 8 working hours (only the notary public who certifies the agreement can tell you, whether a certificate may be requested to be issued within a shorter period of time). Fee payable for ordering the certificate amounts to Eur 6.52.

  • 9. Obtaining a court‘s permission to mortgage the property (only if you have children under 18)

    A permission to mortgage the property issued by a district court is required if a family (or a single parent) with minor children will live in the property being mortgaged. Please find a district court according to your place of residence; click here for the list of courts.

    An application to the court for the permission must be accompanied by the following documents:

    • Your and your spouse‘s passport or personal ID card;
    • Certificates of birth of minor children;
    • Certificate of marriage;
    • A copy of the property sale/purchase contract or another document proving the acquisition of the property;
    • Certificate (extract) issued by VĮ Registrų centras evidencing the registration of title;
    • Application to the district court (in free form);
    • Certificate of earnings or other income of the borrower and his/her spouse;
    • Loan agreement.

    You have to produce original documents and copies thereof. Please use the list of the courts and their details provided to check whether any additional documents will be required by the judge. The court order will be issued within 5 business days from submission of all the required documents and will take effect on the order date. Courts issue mortgage permissions free of charge.

    The court permission must be presented to the notary for the certification of the mortgage.

    No court permission is required for mortgage if:

    • Your family including minor children lives in a property other than the property being mortgaged. In such a case you will have to present to the notary documents evidencing that you own another property that has been registered as community property in the Register of Immovable Property;
    • A land plot is being mortgaged.
  • 10. Taking out insurance for the mortgaged property

    When a housing loan is issued, insurance of the collateral shall be required throughout the period of the agreement. Property insurance is available right at the Bank, at very favourable conditions, or with any other insurance company acceptable to the Bank see here. You may sign a property insurance agreement with any other insurance company if the provided insurance coverage is equivalent to the property insurance coverage issued by an insurance company acceptable to the Bank. The Bank is entitled, within an additional period set by the Bank (you must be individually informed about it by the Bank), to conduct an additional review of an insurance agreement produced by another insurance company to make sure the insurance coverage to be granted meets the requirements above.

    Our employee may arrange the insurance of the mortgaged property and you will not have to approach other insurance companies. In this way you will save time and will be sure that the property is insured properly. We will insure your property on most favorable terms at Swedbank P&C Insurance AS Lithuania Branch, a non-life insurance company.

    At your request, we can also insure your civil liability to third parties for losses related to defects, management or use of mortgaged immovable property. You may also choose an option of taking out insurance for the movable home property, and items contained in the property will be protected in case of unforeseen events, e. g. burglary, fire, voltage fluctuations etc.

  • 11. Mortgage agreement is notarially certified and registered with the Mortgage Register

    The Bank has compiled a list of notaries public whom the Bank recommends for certification of mortgage agreements concluded by the Bank. The list has been compiled with the aim to ensure a smooth procedure of concluding mortgage agreements (these notaries public are aware of the Bank’s requirements for mortgage agreements (description of terms and conditions for property insurance, requirements for pledging family property, etc.). You can find the list of notary offices in which the Bank signs mortgage agreements here.

    The mortgage agreement will be prepared by the notary

    Our employee will prepare the requisite documents and transmit their copies to the notary. You have to present the following documents to the Bank‘s employee:

    • Your and your spouse‘s passport or personal ID card;
    • Certificate of marriage/divorce;
    • Purchase and sale agreement for the property being mortgaged to the Bank;
    • Certificate (extract) issued by VĮ Registrų centras evidencing the registration of title;
    • Court‘s permission for the mortgage agreement (if you have minor children, a community property is being mortgaged and you do not have another residential property registered as community property);
    • Certificate of title (or an extract therefrom) to a land plot or a land lease agreement and a permission to pledge the title (where a house, garden house or farmstead is being mortgaged);
    • Layout of the land plot (if a land plot is being mortgaged);
    • Insurance policy for the property being mortgaged to the Bank in case if the property is being mortgaged not through the bank (where a land plot is being mortgaged, no insurance is required);
    • Property valuation report/certificate.

    The mortgage agreement will be certified by the notary

    Notarial certification of a mortgage agreement costs between 0.2% and 0.3%, but no less than EUR 14.48 and no more than EUR 144.81 of the value of the property being mortgaged. There are also other fees for the services provided by VĮ Registrų centras and other public registers in relation to the certification of the transaction. The notary will inform you about the exact fee rates.

    You have to present the following documents (originals) to the notary:

    • Your and your spouse‘s passport or personal ID card;
    • Certificate of marriage/divorce;
    • Loan agreement;
    • Purchase and sale agreement for the property being mortgaged to the Bank;
    • Court‘s permission for the mortgage agreement (if you have minor children, a community property is being mortgaged and you do not have another residential property registered as community property);
    • Certificate of title (or an extract therefrom) to a land plot or a land lease agreement and a permission to pledge the title (where a house, garden house or farmstead is being mortgaged);
    • Layout of the land plot (if a land plot is being mortgaged);
    • Insurance policy for the property being mortgaged to the Bank in case if the property is being mortgaged not through the bank (where a land plot is being mortgaged, no insurance is required).

    The mortgage agreement must be registered with the Mortgage Register. The registration fee is EUR 31.28.

  • 12. Disbursement of the loan

    Upon registration of the mortgage agreement, after you submit the payment order to the Bank, and all other conditions stipulated in the loan agreement are fulfilled, the Bank will disburse the loan amount or a part thereof, by transferring the money to your account or the account of the seller of the property specified in the purchase and sale agreement.

  • 13. Confirmation of the fact of settlement under the purchase and sale agreement

    Upon full payment for the property, you and the seller of the property have to obtain, within the time limit stated in the purchase and sale agreement, a notarial confirmation of final and due settlement under the agreement. This has to be done at the same notary‘s office that has certified the purchase and sale agreement. You have to submit the notarial confirmation of final and due settlement to VĮ Registrų centras and the Bank‘s employee assigned to you.

  • A service package related to a Home Loan

    A decision on a home loan is one of the most important steps in life. This must be a well-thought-out decision in order to avoid financial problems and to protect your property in case of unfavorable circumstances or troubles.

    Insurance of mortgaged property

    • It is obligatory to take out insurance for the property in order to receive a home loan;
    • We offer very favorable property insurance terms. By choosing insurance at our Bank you will save time and will be sure that the mortgaged property is insured properly.

    Civil liability insurance

    • Property owner‘s civil liability insurance will help avoid unforeseen financial problems if you will be liable to pay damages to other persons;
    • At our Bank, you can take out insurance of this type on very favorable terms.

    Movable property insurance

    Insurance of home contents (movable property) will protect items contained in the property in case of unforeseen events, e. g. burglary, fire, voltage fluctuations etc.

    These non-life insurance services are provided by Swedbank P&C Insurance AS Lithuanian Branch. For more information about the service please click here or call on 1884.

    Financial reserve

    • We recommend you to have a financial reserve amounting to your pay for 3 to 6 months in case you lose your job, fall ill or incur unexpected expenses.
    • The financial reserve has to be accumulated in a liquid form so that the money is readily available and can be used without incurring losses.

    A deposit agreement is recommended

    Secured Home Loan

    • This is the way to protect your family against financial liabilities in case of your death or severe disability.
    • The size of the insurance premium depends on the loan balance, the sum insured chosen by you for the life insurance cover, the risks depending on age, health condition etc.

    The Secured Home Loan is a life insurance service provided by Swedbank Life Insurance SE Lithuania Branch. For more information about the service please click here or call on 1884.

Main steps in receiving a mortgage loan

Interest rates vary from loan to loan and depend on:

  • Your credit history;
  • Value of the property being mortgaged etc.

The overall interest rate is calculated for each client individually and is set in the loan agreement.

You can choose between variable or long-term variable rate.

  • Variable interest rate (is set for a period no longer than 12 months)

    The overall variable interest rate consists of the variable interest base and the interest margin set for the client individually.

    Interest base

    Bank applies the following interest base options:

    • EURIBOR interest base: The European inter-bank offered interest rate at which banks are ready to lend money to other banks (in euro), published by Thomson Reuters. If the EURIBOR value is below zero it is deemed that it is equal to zero;
    • PRIME interest base for mortgage loans (new loans are not issued with this interest base):

      • Published by Swedbank on a daily basis for loans in euro;
      • Consisting of two components: EURIBOR (if the EURIBOR value is below zero it is deemed that it is equal to zero) and the country‘s economic indicator.

    For more information about the country‘s economic indicator click here.

    The variable interest base changes every 3/6/12months, consequently, the total interest rate payable may either decrease or increase, depending on the change in the base interest rate.. New loans are available with a 6-month variable interest rate only. When selecting the variable interest rate you have to consider that the fluctuation of the interest rate in certain period can markedly increase your monthly interest payments to the Bank. In order to ensure proper fulfilment of financial obligations, the Bank recommends that you allot no more than 30 to 40% of your income for that purpose.

    For today‘s interest base rates click here

    Interest margin set for the Client

    The interest margin is calculated for each Client on an individual basis.

    The interest margin is set upon consideration of the following factors:

    • Your credit history;
    • The value and liquidity of the property mortgaged;
    • The loan term;
    • The selected interest base etc.

    When a payment is delayed or there is a substantial breach of the main conditions of the credit agreement, the Bank is entitled to review the interest rate margin unilaterally. The margin will not be changed if you were not repeatedly late or were not late for more than 15 days with your payments to the Bank and/or its companies over the last 2 years, and if you have complied with all essential conditions of the credit agreement.

  • Long term variable interest rate (is set for a period longer than 12 months)

    A long term variable interest rate may be set:

    • For a period of up to 5 years. On expiry of this period the interest will be either automatically changed into variable interest or may be set long term variable again by agreement of the parties;
    • Only upon full disbursement of the loan or upon expiry of the loan disbursement period; until then, the agreed variable interest rate will be applied.

    By choosing a long term variable interest rate for your home loan you will be sure that the monthly interest payment will not change over the selected period.

    When selecting a long term variable interest rate one must remember that, at the moment of its setting, a long term variable interest rate is higher than the variable interest rate applicable at that time.

    Selection of a long term variable interest rate does not ensure that the amount of interest paid over the loan period will be smaller but does provide an opportunity to have a stable monthly payment irrespective of economic changes, which enables a better planning of your financial flows.

You may select any of the following loan repayment methods:

  • Annuity method is the loan repayment method whereby the loan is repaid to the Bank in equal instalments consisting of the loan repayment amount and the interest amount, and such instalments are payable until the date of drawing up a new payment schedule.
  • Linear method is the loan repayment method whereby the loan is repaid to the Bank in equal instalments but the amount of the last instalment may differ from other instalments. I
  • Fixed payments annuity method is the loan repayment method whereby the loan repayment schedule is drawn up by the annuity method but the instalment consists of the interest payable for the past month and the repayable loan amount. The term of the loan agreement changes (increases/decreases) along with changes in the interest rates, however, not exceeding the pre-set term, and the monthly payment to the bank remains fixed. The fixed monthly payment may be increased for the client only in case if, along with the increase in interest, the term of the loan agreement reaches the maximum term and the fixed payment will be not sufficient to repay the loan and to pay interest. If the interest rate drops, the monthly payment decreases to the fixed amount.

For more information about the home loan repayment methods please click here

Are you planning to take out a home loan? Please read more information on additional insurance suitable for you.

More

A typical example:

If the total amount of a home loan being taken out related to real estate is EUR 60,000, when the duration of the credit agreement is 22 years with a 2.09 per cent variable annual interest rate, paying a one-off loan agreement administration fee established by the bank of 0.35 per cent of the credit amount (EUR 210), the minimum daily service fee (EUR 0.70 per month), the mortgage registration fee (EUR 31.28) and annuity mortgage payments, then the annual percentage rate of charge would be 2.2 per cent, and the total amount paid to the borrower would be EUR 75,478. The total number of loan payments would be 264, and the amount of each instalment would be EUR 284.

The annual percentage rate of charge, the total amount payable by the borrower, the total number of loan payments and the amount of each instalment are calculated under the assumption that the credit agreement will be valid for a period equal to the duration of the credit agreement, that the entire loan will be paid out on the day that the agreement is signed, that the parties will fulfil all of their obligations properly, and that the variable interest rate, fees and other costs will remain the same as at the time of conclusion of the credit agreement and will continue to apply until the end of the credit agreement. A customer shall also bear the costs of property insurance and appraisal. These costs depend on the individual characteristics of collateral and, therefore, are not included in the total credit price in the example above.

The loan must be secured by mortgage of real estate acceptable to the bank, and the mortgaged property must be insured by concluding an insurance agreement. A report by an independent property appraiser may be required on the value of the collateral. The costs of property insurance and appraisal depend on individual characteristics of collateral, and shall be prescribed by agreements you may have with the relevant service providers.

By using these financing services, you are assuming financial obligations. Improper fulfilment or non-fulfilment of financial obligations may have a negative impact on your credit history and make borrowing more expensive; you also risk losing ownership rights to the mortgaged real estate.

Besides, a loan administration fee may be charged at the time of entry into a credit agreement. Loan administration fees and other fees are provided here.

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