Investment Finance For Estonia

Below you will find out about the mortgage market and various financial options available to you as a real estate investor in Estonia.


Financing your investment property in Estonia is an important decision and could entail injecting your own cash resources or, as most serious investors prefer, a mortgage or even an equity release scheme.

The mortgage market is becoming increasingly developed in Estonia to cater for the growing numbers of Estonians and foreigners now in a position to buy at today’s low prices. The Estonian real estate market offers timely buyers potentially high returns as increased mortgage availability continues to trigger an ongoing demand for property.

A shortfall of quality new properties in prime locations means demand runs high. This situation, along with readily available mortgage options, maintains market buoyancy at its highest possible levels.

Low interest Kroon (EEK) repayment mortgages are easy to come by in Estonia at a typical rate of around 4.25%, funding up to 80% of the property valuation over a period of 30 years or up to 65 years of age.

For the bank’s purposes, the cost of the new mortgage plus your other liabilities will have to be proven to not exceed your monthly income. In general, annual mortgage repayments cannot exceed 40-50% of your annual income. Rental income is not included as a consideration in the affordability of your loan.

If you are employed, your last six months’ pay slips, copies of your latest two P60s and you last 6 months personal bank statements will be required. Self-employed borrowers will need to produce copies of their last three years’ audited accounts, along with copies of bank statements for their last 12 months’ business and last 6 months’ personal accounts.

Click here to get a free quote on a mortgage in Estonia

Off-Plan Financing

Many off-plan developments in Estonia offer installment plans and the charges applicable vary according to developer and repayments are usually index linked. The developer can often offer the most competitive finance options to investors and these are certainly worth considering when looking at mortgage alternatives from their own countries.

As always, before making a commitment, we recommend you discuss your intended investment strategies for Estonia with a lawyer, a reputable property agent with experience in the area and even a financial advisor.

1. Equity Release

If you are in your mid-50s or older and own your own home, you may be able to get a cash lump sum, a regular income, or both, by using an equity release scheme based on the value of your property. These schemes can be helpful in certain circumstances to raise money for a mortgage to finance your property in Estonia. If you so wish, we can introduce you to independent financial advisors who will gladly help you raise the necessary finance for your investment property in Estonia.

2. Alternative Finance

Not everybody falls into a category and some investors will need to raise alternative finance to equity release or mortgage options. There are other borrowing facilities available to purchasers of investment property in Estonia.

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