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Private

Home Equity Loan

Home Equity Loan

We want you to pursue your goals with care

  • You can borrow a bigger amount of money for your different needs
  • Under certain circumstances you can postpone payment of instalments

If you would like to buy a more valuable item (say, a car), start studying, improve your health or household or have other grand ideas, it is worthwhile applying for this loan. It is available when you take out a mortgage against immovable property.

Basic lending conditions

Requirements for the borrower

Loans are available to adult nationals of the Republic of Lithuania and individuals with a permit of permanent residence in Lithuania who are receiving permanent income, in particular:

  • wages
  • other regular income received under author's agreements, from business activity, lease and otherwise supported by relevant documentation

The total amount of monthly instalments paid to various credit institutions should not exceed 40 per cent of your total monthly net income.

Amount and maturity

The amount and maturity of the loan depend on the value of mortgaged property – we can lend you an amount equalling 60 per cent of the value of mortgaged property. The available maturity is up to 25 years.

The loan amount also depends on the assessment of the family’s financial capacity to repay the loan.

Currency

Loans are available in euros.

Interest

When you enter into a  loan agreement, you can choose from two types of interest – variable or fixed.

Variable interest is linked to your chosen 3, 6 or 12-month EURIBOR (Euro Interbank Offered Rate) interest rate.

The fixed interest rate may be approved if the loan period does not exceed 10 years. If you select the fixed interest, such interest will be approved for the entire loan period.

Any new or fixed interest or variable interest rate will be approved taking into consideration the situation in the lending market, the loan amount and its period, assessment of your financial potential, your credit exposure, and also to the number and type of services provided to you by AB SEB bankas.

Securities

Repayment of the loan is normally secured by taking out a mortgage against housing. Requirements:

  • The value of the mortgaged immovable property must be established by property valuers
  • Mortgaged immovable property (other than parcels of land) must be provided with insurance coverage from a property insurance company

Loan repayment

Once the bank has disbursed the funds of the loan, your instalments will be debited from your chosen account on the agreed payment dates. The first instalment is interest only.

Repayment methods

Linear method Annuity method
The principal is divided into equal portions, which are paid every month. To them interest is added, which is calculated from the non-repaid portion of the loan (the smaller is the outstanding amount, the lower is the interest amount). So over the entire term of the agreement the monthly instalments are gradually decreasing. The same amount of instalment is paid every month, consisting of the principal and interest. At first interest comprises the larger part of the instalment. It gradually decreases while the principal is increasing, but the amount of the monthly instalment does not change.

If you can afford higher instalments from the beginning, it is worth choosing the linear method because the amount of interest paid will be lower over the whole term.

Grace period

If you are facing an emergency, you can file us a request to postpone payment of instalments without changing the final loan maturity date. During the grace period only interest is payable.

Emergency: Grace period:
you lose job up to 3 months
your income drops by 50 per cent up to 6 months
aftermath of fire or other natural disasters up to 6 months
childbirth
  • up to 12 months if the child is raised by a single parent
  • up to 6 months if the child is raised by both parents
you start studying up to 3 months
divorce up to 3 months
family loses breadwinner (spouse) up to 12 months
you become ill or have an accident which has kept you off work for more than 2 months up to 12 months or longer (subject to specific circumstances)
in case of compulsory initial military service within the entire period of compulsory military service

 

For more information about the loans and the terms and rates please call our 24/7 line 1528 or visit a SEB bank unit of your choice.


Borrowing is always associated with the risk of being unable to fulfil your assumed obligations properly and in due time, so before you decide to take out a loan, consider this risk carefully.

Use the mortgage loan calculator to calculate a loan instalment that you could pay the bank every month without difficulty and consider the risk of decreased income. We also recommend considering the risk of increased instalments related to a rise in the interest rate and the risk of borrowing in a foreign currency.

According to the Responsible Lending Regulations of the Bank of Lithuania, we will provide you with instalment samples and other information related to concluding a loan agreement before signing the loan agreement. Please compare the different offers and make an informed decision.

Please note that you need to take out a mortgage against property to secure repayment of the loan. If the assumed financial liabilities are not fulfilled, there occurs a risk to lose title to the property.

The bank has the right to refuse giving out a loan.

Mortgage loan and loan to private individual (subject to real estate pledge)
Annual interest rate fixed on individual basis
Contract fee:
  • loan issuance
  • increase in loan amount
0.4 percent of the loan amount, min EUR 144.81
Commitment fee 0.4 percent per year of the undisbursed loan amount
Fee for a consent to provide a second ranking pledge of property to another creditor EUR 115.85
Prepayment fee not applied if the loan is repaid on the variable interest adjustment date
if repaid on any other date – the fee established in acts of law (The Rules for Calculation of Compensation), however not exceeding 3 percent of the loan being prepaid or any portion hereof
Amendment to terms and conditions of a loan agreement in case of: If variable interest rate is applied: If fixed interest is applied:
  • a change of fixed interest rate with variable interest rate and vice versa
  • a change of variable interest period
  • a change of loan currency
  • loan prepayment

1.5 percent of outstanding loan, at least EUR 144.81


1 percent of outstanding loan, at least EUR 144.81, if the terms are amended on the interest rate change date
year(s) until expiry of fixed interest rate period percent of outstanding loan,
at least EUR 144.81
up to 1 year 1
1–2 years (inclusive) 1.5
2–3 years (inclusive) 2
3–7 years (inclusive) 2.5
7–10 years (inclusive) 3
more than 10 years 3.5
  • a change of variable interest rate margin or fixed interest rate

1 % of outstanding loan (min. EUR 144.81)
  • loan prepayment on the interest rate change date

free of charge
Other amendments to the terms and conditions of the loan agreement EUR 144.81
Loan deferment Not available
Other services
Documentation related to a credit agreement: certifications, official letters, consents, permissions, approvals EUR 30.00

Taking into consideration that the Law on Credits Secured by Mortgages on Immovable Property comes into effect from 1 July of 2017, the fee for the housing loan prepayment and for the loans to individuals secured by the mortgage changes respectively. The fee from 1 July 2017 will be calculated according to the requirements established in acts of law (The Rules for Calculation of Compensation).

Typical example for calculating annual percentage rate

If a loan of EUR 50,000 secured by real estate collateral is granted for the period of 25 years and 300 loan instalments based on the annuity method will be made, the total amount to be paid by such borrower will make EUR 68 584,24, monthly instalment – EUR 223,05. The annual percentage rate will make 2,712 per cent. Annual percentage rate showing the total cost of a loan is calculated by including the below instalments made within the entire loan period:

  • 2.90 per cent variable interest
  • EUR 200 agreement fee and one-off transfer fee of EUR 3
  • EUR 31.28 mortgage (pledge) registration fee
  • EUR 0.70 per month minimum fee for main banking services
  • EUR 49 dwelling insurance annual premium

Note. Property valuation costs are not included.

Annual percentage rate and the total amount to be paid by the borrower are calculated considering that the loan is disbursed on the agreement signature date and that the terms of the agreement, interest rate and fees do not change within the entire loan period, and the terms and conditions of the agreement are timely implemented. If you fail to fulfil or unduly fulfil the terms of the loan agreement, the risk exists that you may be deprived of the ownership right to the pledged real estate. The mortgaged real estate must be insured in favour of the bank during the entire loan period.

 


Borrowing is always associated with the risk of being unable to fulfil your assumed obligations properly and in due time, so before you decide to take out a loan, consider this risk carefully.

Use the mortgage loan calculator to calculate a loan instalment that you could pay the bank every month without difficulty and consider the risk of decreased income. We also recommend considering the risk of increased instalments related to a rise in the interest rate and the risk of borrowing in a foreign currency.

According to the Responsible Lending Regulations of the Bank of Lithuania, we will provide you with instalment samples and other information related to concluding a loan agreement before signing the loan agreement. Please compare the different offers and make an informed decision.

Please note that you need to take out a mortgage against property to secure repayment of the loan. If the assumed financial liabilities are not fulfilled, there occurs a risk to lose title to the property.

The bank has the right to refuse giving out a loan.

If you are applying for a mortgage loan or a home equity loan

Documents required from you and your spouse

  • Loan application
  • Personal identity documents (passport of a Lithuanian national or personal identity card)
  • Personal identity documents (passport of a Lithuanian national or personal identity card)

Additional documents that may be required

  • Statements on wages from the last 12 months (on the employer's letterhead signed by the head and CFO of the company and sealed)
  • Employment contracts
  • A tax return approved by the State Tax Inspectorate if you are a sole proprietor
  • A tax return approved by the State Tax Inspectorate if you are a sole proprietor
  • Other certificates or documents which testify to your family income

Additional documentation that may be required if you apply for a loan to build or reconstruct a home

  • Contract for works if the works are performed with a contractor
  • Construction permit and other design documentation
  • Documents testifying to the title to a parcel of land or leasehold interest
  • Cost estimate for construction or reconstruction work and timetable for completion of the work

In each individual case we may ask you for more documentation.

For more information about the loans and the terms and rates please call our 24/7 line 1528 or visit a SEB bank unit of your choice.


Borrowing is always associated with the risk of being unable to fulfil your assumed obligations properly and in due time, so before you decide to take out a loan, consider this risk carefully.

Use the mortgage loan calculator to calculate a loan instalment that you could pay the bank every month without difficulty and consider the risk of decreased income. We also recommend considering the risk of increased instalments related to a rise in the interest rate and the risk of borrowing in a foreign currency.

According to the Responsible Lending Regulations of the Bank of Lithuania, we will provide you with instalment samples and other information related to concluding a loan agreement before signing the loan agreement. Please compare the different offers and make an informed decision.

Please note that you need to take out a mortgage against property to secure repayment of the loan. If the assumed financial liabilities are not fulfilled, there occurs a risk to lose title to the property.

The bank has the right to refuse giving out a loan.

Want advice or to apply for a loan?

You can learn and do quite a lot online:

How much could I borrow?

Find out your opportunities using the calculator

How to get advice from a professional?

Register for a free consultation

How to apply for this loan?

Fill your application and we will contact you shortly.

Alternatively, you can file a loan application by logging in to our banking web site or visiting a SEB bank unit. Once we have received your application, we will give you a response on the availability of a loan within one business day.

If the answer is yes, we will then explain how you should have your property evaluated and insured and what charges apply while doing so. For more information read “Frequently Asked Questions”.

For more information about the loans and the terms and rates please call our 24/7 line 1528 or visit a SEB bank unit of your choice.


Borrowing is always associated with the risk of being unable to fulfil your assumed obligations properly and in due time, so before you decide to take out a loan, consider this risk carefully.

Use the mortgage loan calculator to calculate a loan instalment that you could pay the bank every month without difficulty and consider the risk of decreased income. We also recommend considering the risk of increased instalments related to a rise in the interest rate and the risk of borrowing in a foreign currency.

According to the Responsible Lending Regulations of the Bank of Lithuania, we will provide you with instalment samples and other information related to concluding a loan agreement before signing the loan agreement. Please compare the different offers and make an informed decision.

Please note that you need to take out a mortgage against property to secure repayment of the loan. If the assumed financial liabilities are not fulfilled, there occurs a risk to lose title to the property.

The bank has the right to refuse giving out a loan.

Contact

  • "Skype" (24/7 line)
  • Write us
  • Branches and ATM's
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