Home loan

Danske Bank is no longer issuing loans to private customers. Existing credit agreements will remain valid on the agreed terms until their expiry.

If you have any questions please call us 6 800 800 or write us info@danskebank.ee

More about home loan

  • 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.
  • Credit agreement changes

    If you wish to amend your credit agreement repayment schedule or guarantees, we kindly ask you to:

    • submit a free-format application via the Danske eBank
    • e-mail your amendment wish to info@danskebank.ee or to your Private Banker
    • submit the application at nearest Danske Bank Business Centre

    In the case of amendments that involve collaterals (e.g. the release or exchange of a security), the Bank must be presented with an evaluation report of a property that will guarantee the loan contract.

  • 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.

Management of existing agreements

  • 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.

    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 relationship manager if necessary.


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