Frequently asked questions

Yes, when refinancing a mortgage loan under the simplified procedure, a credit assessment will be carried out in the standard way. We assess the amount and sustainability of income, credit history and other existing financial obligations.

If you apply for a simplified refinancing of the mortgage loan but want to increase the loan amount and/ or extend the term of the loan, you will be subject to the standard refinancing conditions and fees.

If you refinance your mortgage loan under the simplified refinancing procedure, there are no additional costs.

The simplified refinancing can be used up to once every 2 years.

Once you have submitted your application and all the required documents, the employee of the Bank will contact you as soon as possible, but no later than within 15 business days.

Usually, the refinancing process, including the signing of the agreement and the registration of the mortgage, takes from a couple to 5 business days.

Normally, similar documentation is required as for a new loan application: proof of income, the refinanced mortgage loan agreement and other documents that may be relevant to the decision to grant the loan.

Yes, it is possible. However, you will not be subject to the simplified refinancing procedure.

Refinancing may be financially beneficial if another bank (e.g. Urbo bankas) can offer a lower lending margin or more favorable loan terms than your current lender. It can also be a good option if the value of your property has increased and you need additional funds, for example to finance home renovations that further improve the property's condition and value.

If you refinance your mortgage under the simplified refinancing procedure (effective from 1 February 2025), no additional fees apply. In other refinancing cases, you may incur certain costs, including a new property valuation, a loan agreement fee, and notary fees for registering the new mortgage. However, over the long term, the interest savings often outweigh these upfront expenses.

Yes. If your property's market value is sufficient and your income supports a higher borrowing capacity, you may be able to obtain additional funds for home renovations when transferring your mortgage to Urbo bankas.

Mortgage refinancing requires the property to be pledged as collateral (secured by a mortgage), which makes the process more comprehensive and typically takes longer. Consumer loan refinancing, on the other hand, is intended to consolidate unsecured loans and is generally faster to arrange. However, consumer loans usually carry higher interest rates than mortgage loans.

Yes. Legally, refinancing involves entering into a new loan agreement. The new bank repays your existing mortgage, the current mortgage registration is released, and you sign a new loan agreement and mortgage agreement with Urbo Bankas.

A mortgage can be used to finance various types of residential real estate, including apartments in multi-family buildings, detached single-family homes, shares of residential houses, semi-detached and duplex houses, residential premises, as well as residential properties under construction.

It is not possible to purchase non-residential premises with a home mortgage. However, we can offer a loan secured by real estate. The loan term is the same as for a home mortgage—up to 30 years. The main difference is the interest rate. Important: When purchasing non-residential premises, a garden house, or recreational property, the property must be intended for your or your family's personal use, not for business purposes.

Yes. The bank finances the purchase of commercial premises by providing an investment loan. The loan term is up to 15 years, with interest rates starting from 3.8%. The final financing terms are determined after assessing the customer's financial situation and the proposed transaction.

The bank may consider financing the purchase of a loft by providing a loan secured by real estate. However, it is important to note that lofts are typically registered as non-residential property. As a result, a home mortgage, which is intended for the purchase of residential real estate, cannot be used to finance such a property. The final financing terms are determined on a case-by-case basis after evaluating the specific property, its designated use, and the customer's financial situation.

The bank may consider financing the purchase of a garden house or a country homestead by providing a loan secured by real estate. If the property is registered as non-residential, it cannot be financed with a home mortgage, as home mortgages are intended for the purchase of residential real estate.  The financing terms are determined on a case-by-case basis after evaluating the specific property, its designated use, its marketability, and the customer's financial situation.

Yes. The bank may consider financing the purchase of dormitory-style premises with a home mortgage, provided that the property meets the requirements for residential real estate. However, each property is assessed on an individual basis.

The bank will evaluate factors such as the property's designated use, legal status, marketability, and other property-related considerations. Due to the specific nature of this type of property, the maximum financing amount may be lower than for a standard apartment or other conventional residential property. The final financing terms are determined after assessing both the property and the customer's financial situation.

Yes. The bank may consider financing the purchase of a land plot with a home mortgage, provided that the customer intends to build a residential house on the plot in the future. It is important to note that when the land plot is pledged as collateral to the bank, not only the plot itself but also any buildings subsequently constructed on it automatically become part of the collateral.

Please also be aware that land plots may be subject to a lower loan-to-value (LTV) ratio (up to 70%). As a result, the bank's financing may be lower than for the purchase of an existing residential property, meaning the customer may need to contribute a larger down payment. The final financing terms are determined on a case-by-case basis after evaluating the specific property, the planned construction project, and the customer's financial situation.

Yes. The bank may consider financing the purchase or completion of a property under construction with a home mortgage. When assessing such a property, the bank considers factors including the stage of construction, legal status, construction documentation, estimated completion costs, and the projected value of the property once construction is completed.

Please note that, due to the higher risk associated with properties under construction, different financing conditions may apply compared to a standard residential property. These may include a requirement for a larger down payment. The final financing terms are determined on a case-by-case basis after evaluating the specific property and the customer's financial situation.

Yes. The bank may assess income earned abroad when evaluating a home mortgage application. When reviewing such income, the bank considers its stability, sustainability, length of time it has been received, source of income, employment relationship, and any other relevant information supporting its nature.

The bank may also consider the country where the income is earned, the reliability of the employer, the currency in which the income is paid, and other factors relevant to the income assessment. The final financing terms are determined on a case-by-case basis after evaluating the customer's financial situation, creditworthiness, and the supporting documentation provided.

Important: The bank provides loans only in the following currencies: EUR, USD, GBP, and NOK. Therefore, the loan will be granted in the same currency in which you receive your income. If the currency of your income does not match the official currency of your country of residence, the bank will not be able to provide the loan due to foreign exchange risk.

The final financing terms are determined individually after assessing the customer's financial situation, the nature and currency of their income, and other creditworthiness criteria.

Yes. A loan in euros (EUR) may be granted, provided that your EUR-denominated income is sufficient to cover all your existing financial obligations as well as the repayments of the proposed loan.

Yes. The bank may consider granting a loan to customers employed under a fixed-term employment contract. When assessing this type of income, the bank considers not only the duration of the contract but also whether employment demonstrates continuity.

A fixed-term employment contract may be regarded as a sustainable source of income if it reflects the nature of the job or specific legal provisions. This may apply, for example, to military personnel, public officials, teachers, and other professionals whose employment terms are determined by the nature of their role or applicable regulations. The bank also evaluates the customer's employment history, the continuity of previous employment contracts, the reliability of the employer, the stability of the income, and other relevant circumstances.

The final loan approval and financing terms are determined on a case-by-case basis after assessing the customer's financial situation and creditworthiness.

Yes. Maternity, paternity, and parental leave benefits may be considered as income, provided they meet the bank's criteria for sustainable income. These benefits may be regarded as sustainable income if the customer has not terminated their employment relationship with their previous employer and has been receiving the benefits for at least two months.

When assessing the customer's ability to take on financial obligations, the bank also considers other sources of income, the household's financial situation, existing financial commitments, and other creditworthiness criteria. The final financing terms are determined on a case-by-case basis after a comprehensive assessment of the customer's financial situation.

Yes. In certain cases, the bank may consider dividend income when assessing a loan application. However, stricter eligibility requirements apply. When evaluating dividend income, the bank considers the financial condition, business continuity, and prospects of the company paying the dividends, as well as potential economic risks and their possible impact on future dividend payments.

For this reason, not all dividend income is considered sustainable income. In most cases, the bank takes into account up to 40% of the actual dividends received. Dividend income may be considered only if it is regular and the customer has been receiving it for at least four years.

The final financing terms are determined on a case-by-case basis after evaluating the customer's financial situation, the sustainability of the income, and other creditworthiness criteria