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Mortgage Loan

Mortgage Loan

Buy a new home with confidence

  • We take care that you are able to repay your loan even if your financial situation has changed
  • We'll advise you on mortgage loan issues of your interest
  • Residence properties are available from our partners on good terms

However different we all may be, at the end of the day we come back to somewhere we belong – home. We’ll offer you solutions to help you settle down in your new home and retain it.

First steps to buying your home

  • 1. Consultation

    Register for a free mortgage loan consultation.

    You may register at +370 5 268 2800.

    Read more | Register online

  • 2. Property valuation

    Order the property valuation report to identify the real estate market value. The valuation report will specify the market value and information about the real estate.

    Read more | Property valuers

  • 3. Loan application

    Submit your loan application and specify your personal data.

    Read more

  • 4. The bank decision

    If you have provided us with all required information, you need to wait for the bank’s decision.

    Read more

  • 5. Mortgage loan agreement

    Familiarise with the agreement offered to you.

    Read more | General conditions

  • 6. Purchase agreement signature at the notary’s office

    Purchase and sale agreement will be signed at the notary office.

    If you buy the property with another person, you will have to sign it together.

    Read more

  • 7. If you have minor children, you need a court order

    If you have minor children or obtain a loan for acquisition of your only home, a permission to pledge the property of a district court that has jurisdiction over your place of residence will be required.

    Read more

  • 8. Property insurance

    The dwelling that is the object of pledge must be uninterruptedly insured for the entire validity period of the loan.

    Read more | Collateral insurance

  • 9. The notary public certifies the real estate pledge

    At the notary office you may sign the real estate pledge agreement. If the pledged real estate is owned by you and by your spouse or another person, you have to jointly sign the agreement.

    Read more

  • 10. Final settlement with the seller

    After the pledge agreement signature at the notary office, you need to contact the bank consultant.

    Read more

  • 11. Confirmation of the property purchase documents at the notary‘s office

    The notary public has to register that you have fulfilled all obligations to the seller.

    Read more

  • 12. The last step is to move to your new home

    We extend to you our warmest congratulations – you took an important step in your life and acquired a new dwelling.

    Read more

Next steps
 

 

What is the maximum amount of credit that the bank will extend?

You may fill out  a mortgage loan application after logging into the SEB Internet Bank.

 

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

You have to cover at least 15 per cent of the budget of the financed project with your own (not borrowed) money.

Amount and maturity

We can lend for purchasing, building, refurbishment or reconstructing a home.

The amount and maturity of the loan depend on whether or not this will be your primary residence.

If you are borrowing: The loan amount may be: Loan maturity:
for housing which is your primary residence up to 85 per cent of the market value or price (whichever is lower) of purchased housing subject to taking out a mortgage against it up to 30 years (for home refurbishment  up to 20 years)
for housing which is not your primary residence, also for a homestead, summer house or other similar properties up to 60 per cent of the market value or price (whichever is lower) of purchased housing subject to taking out a mortgage against it up to 25 years (for home refurbishment  up to 20 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 a mortgage loan is usually secured by taking out a mortgage against housing which is being purchased, repaired, built or reconstructed:

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

 

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 72,024.28, monthly instalment – EUR 234.51. The annual percentage rate will make 3,169 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 5
  • 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.

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 150
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 150
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

1.5 percent of outstanding loan, at least EUR 150


1 percent of outstanding loan, at least EUR 150, 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 150
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 150)
Other amendments to the terms and conditions of the loan agreement EUR 150
Loan deferment free of charge
Prepayment fee

On the variable interest adjustment date

not applied

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.
Other services
Documentation related to a credit agreement: certifications, official letters, consents, permissions, approvals EUR 30.00

 

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 72,024.28, monthly instalment – EUR 234.51. The annual percentage rate will make 3,169 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 5
  • 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.

Example of calculating the annual percentage rate of charge
If you received a EUR 3,000  consumer loan in euros for 5 years, the total amount payable by the consumer would be EUR 4,095.80, monthly payment will be EUR 66.73.
The amount includes the consumer loan interest paid over the loan maturity (12 per cent interest rate was applied) the administration fee EUR 50 and the account maintenance fee EUR 0.70.
In this case the annual percentage rate of charge would be 14.03 per cent. The annual percentage rate of charge is provided to help you compare different offers.

For more information about the loans and the terms and rates please call our 24/7 line +370 5 268 2800 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 a mortgage 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 with further instructions.

What needs to be done, what kind of documentation must be provided and how, how to take out a mortgage against property and to insure it and what charges apply – all is described in detail in the section “12 steps to your own home”.

Example of calculating the annual percentage rate of charge
If you received a EUR 3,000  consumer loan in euros for 5 years, the total amount payable by the consumer would be EUR 4,095.80, monthly payment will be EUR 66.73.
The amount includes the consumer loan interest paid over the loan maturity (12 per cent interest rate was applied) the administration fee EUR 50 and the account maintenance fee EUR 0.70.
In this case the annual percentage rate of charge would be 14.03 per cent. The annual percentage rate of charge is provided to help you compare different offers.

For more information about the loans and the terms and rates please call our 24/7 line +370 5 268 2800 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

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