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It takes up no more than two weeks to obtain a mortgage in Latvia. Aizkraukles Banka, Citadele, Rietumu Banka, SMP Bank and Swedbank are some of the banks that lend to non-residents.

Requirements for borrowers

Each bank has its own rules. For example, Swedbank requires a minimum monthly income of at least €7,000 as well as a deposit of €65,000 to an account opened with them.

Lending terms

The maximum maturity term is usually no more than 35 years. Monthly payments cannot exceed 50% of the borrower's income. The mortgage granted may reach 60–80% of the property value with interest rates calculated using Euribor or Libor (interbank offered rates), ranging from 6–7% per annum.

Documents

Mortgage applications in Latvia require the following documents:

  • mortgage application;
  • passport;
  • bank statements for the previous six months showing the borrower's income;
  • proof of income for the previous six months;
  • pledge assessment;
  • property acquisition documents;
  • construction documents: construction permit, contracts and cost sheets (for construction loans);
  • proof of all utility bill payments for each pledged property.

To receive a mortgage, the applicant must have a guarantor who is a resident of Latvia. Borrowers must open an account with the bank offering the mortgage, as the property transaction will be closed from that account.

Extra costs

Mortgage applications may incur the following fees:

  • mortgage application processing −1.5% of the mortgage amount.
  • opening a bank account — 0.5% of the transaction value, but no more than €200.