Mortgage loan

A mortgage loan is suitable for financing the kind of larger purchases that cannot be made under the terms and conditions of a home loan. You can use a mortgage loan to buy a new car, go travelling or finance your business activities.

  • Amount: from €3,500
  • Term: up to 20 years
  • Interest rate: 6 month or 12 month Euribor + margin
  • Collateral: a mortgage established on the property in favour of the bank

What we can do for you?

Call us at 6 800 800 or contact your Private Banker.

More about mortgage loan

  • Loan amount
    The minimal amount of a mortgage loan we issue is 3,500 euros. The maximum amount depends on the borrower’s solvency, prior payment discipline and the collateral, but may not be more than 50% of the market value of collateral.
  • Interest rate and term

    Loan interest rates are determined on an individual basis. 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 never exceed 15 years.


  • Collateral
    We accept a mortgage established on residential property located in the Republic of Estonia as collateral.
  • Loan repayment

    You can repay the loan as follows:

    • as equal principal repayments – the loan is repaid in equal instalments and interest is calculated on the basis of the remaining loan balance. This means that the repayments to the bank will decrease gradually every month;
    • as annuity payments – an equal amount, which consists of the loan principal and the monthly interest, is repaid every month.

  • Early repayment of the loan
    • In order to repay the loan early, the borrower must submit a written application at least three banking days before the requested repayment.
    • In the event of early repayment, the borrower must pay the early repayment fee, which is subject to payment on the date of early repayment.
    • If the loan interest is linked to 6 or 12 month EURIBOR, the amount of the early repayment fee equals the sum of interest due for the next 3 months.
  • Settlement obligation
    In the case of loan agreements, the standard terms and conditions of which include the obligation of a borrower or co-borrower to conduct their transactions via a current account in Danske Bank, the Bank does not consider the failure to perform this obligation a breach of the agreement. This means that the current account tied with the agreement must have sufficient available funds on the repayment date to fulfil the obligations set out in the loan agreement, while the borrower can perform other transactions in any other credit institution.

How to apply

  • Requested documents

    Mortgage loan:

    • Loan application
    • Identity document
    • If your salary has not been paid to an account in Danske Bank in the last 6 months, an account statement for the last 6 months from your bank as well as employment, service or other contracts if necessary
    • Documents evidencing other income, such as rent or lease contracts, documents evidencing business income or owner’s income
    • Property valuation report submitted by a valuator acceptable to the bank (see Property Valuation).
    • In the case of construction or renovation of housing, a calculation of how the loan amount will be used, e.g. a price quote from the builder.

    Documents related to collateral:

    • Documents that prove ownership
    • Valuation report from a real estate agency accepted by the bank
    • Copies of rent, lease and other contracts encumbering the collateral

    The bank has the right to demand additional documents if necessary.


  • Property valuation

    The evaluation act of a property valuator accepted by the bank must be submitted about the property offered as collateral to the loan.

    The list of our accepted cooperation partners is the following:

    Partner

    Location

     1Partner Kinnisvara Tallinn OÜ Tallinn
     Aarete KV OÜ Haapsalu
     Arco Vara Kinnisvarabüroo AS Tallinn, Tartu, Pärnu, Narva, Rakvere, Jõhvi, Kuressaare, Otepää, Haapsalu, Paide, Viljandi
     Colliers International Advisors OÜ Tallinn and Harju county, Tartu, Pärnu, Narva, Rakvere
     Domus Kinnisvara OÜ Tallinn, Tartu, Pärnu, Viljandi, Narva, Võru, Kuressaare
     ERI Kinnisvara OÜ Tallinn (Tallinn-Harju county-Rapla), Tartu (South-Estonia -Jõgeva-Viljandi)
     Kaanon Kinnisvara AS Tallinn, Tartu
     Kinnisvaraekspert OÜ Tallinn, Tartu, Pärnu, Rakvere
     LVM Kinnisvara OÜ Harju county, Tartu county, Pärnu county, Saare county, Hiiu county, Muhu county
     OÜ Kinnisvarabüroo Uus Maa  Tallinn, Tartu, Pärnu, Rakvere, Jõhvi, Viljandi, Jõgeva, Kuressaare
     OÜ LAHE Kinnisvara Valdused Tallinn, Tartu, Viljandi, Pärnu
     Ober-Haus Hindamisteenuste OÜ Tallinn, Tartu, Pärnu, Narva, Jõhvi
     Pindi Kinnisvara OÜ Tallinn, Tartu, Pärnu, Narva, Rakvere, Rapla, Paide, Haapsalu, Valga,
     Võru, Viljandi, Põlva, Kuressaare, Jõgeva, Jõhvi, Türi, Tapa, Kärdla
     Prisma Kinnisvarade OÜ Tallinn
     RE Kinnisvara AS Tallinn
     Seven Kinnisvarakonsultandid OÜ Tallinn
     Tõnisson Invest OÜ Pärnu, Lääne county

  • Property insurance

    The property serving as loan collateral (except for land) must be insured in favour of Danske Bank for the entire loan period.

    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

  • Possible additional expenses
    • Notary’s fee and state fee for the preparation of notarised contracts.
    • Expenses related to the valuation of the collateral. The borrower must order the necessary valuation report at their own expense from a property valuator accepted by Danske Bank.
    • Collateral insurance premiums. Insuring the collateral when a loan is taken is mandatory and insurance cover must be in force for the duration of the entire loan period.
    • Loan repayment conversion expenses. If there are no funds in the currency of the loan in the current account used to service the loan on the repayment date specified in the agreement, the bank has the right to convert funds in any other currency using the selling rate of transferred money valid in the bank’s foreign exchange.
  • Examples of annual percentage rates of charge

    There are various expenses related to borrowing and loans themselves, such as such as interest, credit fee, monthly maintenance fee to the card tied to the loan, etc. The annual percentage rate (APR) of charge can be calculated for every loan on the basis of these expenses. Basically, the APR is the amount of the expenses arising from the loan in a year.

    The sample APR of the loans offered by Danske Bank are given below.

    Home loan

    The initial APR is 1.83% per year on the following sample conditions:
    credit amount €50,000, interest 1.75% per year (6 month EURIBOR + 1.75%; calculated on 6 month EURIBOR as at 10.03.2016, which was -0.139% and is deemed to be 0 (zero), unfixed interest), contract fee €250, term 25 years, total amount €62,201.35, monthly repayment €206,52. The rate is calculated on the assumption that the credit amount will be immediately drawn down in full and the principal is repaid and interest is paid in monthly annuity payments. Collateral must be inured for the entire period of the loan.

    Overdraft

    The APR is 26.94% per year on the following sample conditions:
    credit limit €700, interest rate 18%, contract fee €20, current account management fee €1.50 per month, repayment term 1 year, total amount €865.75. The rate is calculated on the assumption that the credit amount will be immediately drawn down in full.

    MasterCard Platinum

    The APR is 7.70% per year on the following sample conditions:
    credit limit €1,000, annual fee €50, contract fee €10, current account management fee €1.50 per month, total amount €1,081. The rate is calculated on the assumption that the credit amount will be immediately drawn down in full.

    Student loan

    The initial APR is 5.45% per year on the following sample conditions:
    credit amount €1,920.00, interest rate 5%, contract fee €2.56, total amount €1,975.89. The rate was calculated on the assumption that the loan amount will be immediately drawn down in full and repaid within a year in 12 equal instalments after equal intervals of time.

    Car leasing

    The initial APR is 2.72% per year on the following sample conditions:
    capital lease, price of property €19,000 incl. VAT, down payment 20%, residual value of property at end of period 0%, contract period 5 years, interest rate 2.0% (6 months EURIBOR + 2.00% per year; the calculation is based on 6 months EURIBOR as at 01.02.2017, which was 0.244% and is deemed to be 0 (zero); unfixed interest rate), contract fee €175; current account management fee €1.50 per month, total amount €16,260.49, monthly repayment €266.42. The property must be inured for the entire period of the loan.


Disclosure

Please note that every loan is a financial obligation and any failure to perform the obligations arising from the loan agreement may have serious consequences (e.g. compulsory sale of property).

Consider your possibilities and needs carefully before you sign the loan agreement. Read the terms and conditions of the loan and request information from your wealth manager if necessary.


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