Renovation loan for apartment associations

Renovation loans are intended for apartment associations that wish to maintain or increase the value of their building. Renovation and construction work and modernisation of water, sewerage, gas, ventilation, electricity and heating systems increases both the building's energy efficiency and the value of real estate.

  • Amount: from €10,000
  • Term: up to 20 years
  • Interest rate:
    - fixed interest rate + margin
    - 6 or 12 month Euribor + margin

What we can do for you?

Call us at 6 800 800 or contact your Relationship Manager.
Let's discuss your needs and find the best solution to your company.

More about renovation loan

  • Loan amount
    The minimal amount of a renovation loan we issue is 10,000 euros. The maximum loan amount may be up to 100% of the cost of renovation work.
  • Interest rate and term

    The interest rate consists of the bank's interest margin and the inter-bank floating (variable) or fixed interest rate.

    You can choose a variable rate or a fixed rate loan:

    • If you choose a variable interest rate, it will change every 6, 12 months throughout the term of the loan agreement depending on changes to the selected inter-bank interest rate – EURIBOR
    • If you choose a fixed interest rate, it will be fixed for all term of the loan. You will be guaranteed that your monthly payments will not change.

    The term of the loan may not exceed 20 years.

  • Collateral
    • Loans of up to 125 euros/m2: a claim against the members of the apartment association
    • Loans exceeding 125 euros/m2: a mortgage or pledge on the residential building or apartments or guarantees of the members of the apartment association
    • Guarantees can be applied for from the Estonian Credit and Export Guarantee Fund (KredEx)
  • Loan repayment
    The renovation loan has to be repaid according to the agreed schedule with either monthly or quarterly payments. The maximum grace period during renovations is six months.

How to apply

  • Conditions for obtaining a loan
    • The apartment association must have been active for at least six months
    •  It must not have any utility debts
    •  The members of the apartment association must not have any significant debts before the association
    • The decision to take out the loan must correspond to the terms and conditions laid down in law and be formalised under conditions satisfactory to the bank
  • Required documents
    • Loan application
    • Minutes of the general meeting regarding the decision to take out the loan, prepared on the basis of the bank's example
    • An extract from the land register regarding the owners, numbers and sizes of the apartments and their share in common ownership
    • The annual report for the previous year
    • A report on the debts of the members of the apartment association that exceed a period of 30 days
    • Evidence from public utility service providers indicating the absence of debts or copies of invoices issued for the previous month
    • Copies of construction tenders
    • A bank statement for the last six months if the apartment association is not a client of Danske Bank
    • A copy of the personal identification document of the signatory to the agreement

    A relationship manager will contact you if any additional documents are needed.

  • Property insurance

    Once the loan has been granted, the apartment building must be insured at its restoration value and the insurance must cover any risk of damage caused by fire, water, natural disaster and vandalism.

    The apartment association's insurance agreement insures the members' co-owned assets, i.e. the assets that they own on an equal basis:

    •  the building envelope (external walls and doors, windows, balconies, roof, etc.)
    • load-bearing structures (foundations, load-bearing interior walls, ceilings, etc.)
    • common areas (stairwells, basements, lifts, laundry rooms, etc.)
    • internal and external shared technical systems (water, sewerage, electricity and heating systems)

    The insurance agreement must be entered into with an insurance company acceptable to the bank, with Danske Bank A/S Estonian branch specified as the beneficiary.

    Request an insurance quote from the property insurance companies accepted by us:

     If P&C Insurance AS
     AAS "BTA Baltic Insurance Company" Eesti filiaal
     Ergo Insurance SE
     Swedbank Varakindlustus AS
     Inges Kindlustus AS
     AB „Lietuvos draudimas“ Eesti filiaal (PZU)
     Gjensidige Baltic Eesti filiaal (former Parex Kindlustuse Eesti AS)
     Salva Kindlustus AS
     Seesam Insurance AS
     Compensa Vienna Insurance Group, UADB Eesti filiaal

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