A mortgage loan is a loan granted to purchase, build, renovate a house or apartment or refinance an existing loan. The loan is secured with real estate pledge. The loan is granted in accordance with the Regulations for Responsible Lending approved by the Bank of Lithuania. *The fixed interest rate is set for a fixed period of 5 years, and upon its expiration, the interest automatically switches to a variable interest rate, applying the 6-month EURIBOR and the Bank's lending risk and profit margin specified in the agreement, or by agreement of the parties, a fixed interest rate for a newly fixed 5-year period may be established again. This interest rate is applicable only to loans in euros.
The loan amount is up to 85% of the real estate price
Possibility to choose a 3, 6 or 12-month EURIBOR rate
Repayment period is up to 30 years
Loans provided to people working in countries outside the euro area
Credit amount
Period
Credit amount
Period
Preliminary average monthly payment
111 €
Typical example with variable interest rate
If a mortgage loan of EUR 85 000 is granted for a term of 25 years, using the annuity method, with a variable interest rate of 5,81%, a one-time contract administration fee of EUR 425, a fee for registering a pledge of the property at the State Enterprise Centre of Registers of the Republic of Lithuania of EUR 8,60, and a fee of EUR 2 for the transfer of the loan proceeds, which would bring the total amount payable by the borrower to EUR 161 513,41 with an annual interest rate on the total amount of the loan at 6,02 %. The total number of payments is 300 and the monthly payment is EUR 538,63. The cost of notarial services, property valuation and home insurance are not known to the bank and are therefore not included in the overall model for calculating the annual percentage rate of charge.
A loan is only granted if the fulfilment of the obligations under the loan agreement is secured by a mortgage on immovable property. If you do not fulfil or do not properly fulfil the terms and conditions of the loan agreement, you are at risk of losing ownership of the mortgaged property and impairing your ability to borrow in the future. The mortgaged real estate must be insured for the benefit of the bank throughout the life of the loan.
Preliminary average monthly payment
111 €
Typical example with five-year fixed interest rate
If a mortgage loan of EUR 85 000 is granted for a term of 25 years, using the annuity method, the interest rate that is determined for the initial period of five years is 4.68 %, after five years the variable annual interest rate is 5.81 percent. a one-time contract administration fee of EUR 425, a fee for registering a pledge of the property at the State Enterprise Centre of Registers of the Republic of Lithuania of EUR 8,60, and a fee of EUR 2 for the transfer of the loan proceeds, which would bring the total amount payable by the borrower to EUR 155 449,04 with an annual interest rate on the total amount of the loan at 5,52 %. The total number of payments is 300 and the monthly payment for the first five years – EUR 482,03, and after that – EUR 531,77. The cost of notarial services, property valuation and home insurance are not known to the bank and are therefore not included in the overall model for calculating the annual percentage rate of charge.
A loan is only granted if the fulfilment of the obligations under the loan agreement is secured by a mortgage on immovable property. If you do not fulfil or do not properly fulfil the terms and conditions of the loan agreement, you are at risk of losing ownership of the mortgaged property and impairing your ability to borrow in the future. The mortgaged real estate must be insured for the benefit of the bank throughout the life of the loan.
Basic terms and conditions
Frequently asked questions
Urbo Bankas provides mortgage loans to:
- Citizens of the Republic of Lithuania or holders of a permanent residence permit in Lithuania;
- Are 21 years or older;
- Persons who receive a fixed income;
- Persons whose monthly payments of total financial obligations do not exceed 40% of their fixed income.
- The maximum loan amount depends on the purpose of the loan, the market value of the mortgaged property, the customer’s/family’s fixed income and financial obligations;
- We finance up to 85% of the price of the mortgaged residential property or the market value, whichever is lower;
- We finance up to 70% of the price of the mortgaged non-residential property or the market value, whichever is lower.
- Euro (EUR);
- United States (US) Dollar (USD);
- British Pounds Sterling (GBP);
- Norwegian Krone (NOK);
The currency of your income and the currency of the country in which you reside must be the same as the currency of the loan.
Any real estate registered in the territory of Lithuania, acceptable to the bank, with a market value sufficient to secure the customer’s obligations under the loan agreement may be used as collateral.
Additional terms and conditions:
- Collateral – pledge of real estate acceptable to the bank;
- The mortgaged real estate must be appraised by independent valuers;
- The collateral must be insured in favour of the bank for the full term of the loan plus an additional 2 months at replacement cost.
