How big a down payment do I need?

The regulatory minimum is 15% of the price, but in practice banks often want ~20% (more for older properties). With a KredEx (EIS) guarantee it can be 10%, and 5% for large families (at least three children under 19). The bank pre-approval gives your exact figure.

What is a KredEx guarantee and who is it for?

A state-backed (now EIS-administered) housing-loan guarantee that allows a smaller down payment. Target groups include first-time buyers, young and large families, and buyers of energy-efficient homes; the condition is that you don't own another home (or sell it within 12 months). The bank confirms eligibility.

What extra costs come with buying?

Beyond the down payment: the notary fee and state fee (both depend on the transaction value), a valuation report if the bank needs one, and moving/furnishing costs. Resale apartments carry no VAT (unlike new developments).

Guides

First-time home buyer's guide in Estonia

By the Leia maakler editorial team · Last updated: June 2026

Buying your first home feels complex, but it breaks down into clear steps. Here is what matters most for an Estonian buyer.

In short

Down payment: regulatory minimum 15%, in practice often ~20%; 10% with a KredEx (EIS) guarantee, 5% for large families.
Loan payments combined up to 50% of income (DSTI); maximum term 30 years.
Median apartment price in Estonia ~€110,000 (~€2,300/m²), but up to a 6× gap between regions.
Beyond the down payment, budget for the notary fee and state fee.

Set your budget, down payment and borrowing power

Before you start looking, work out how much home you can afford. By Bank of Estonia rules the minimum down payment is 15% of the price (loan up to 85% of the collateral value), but in practice banks often want around 20% — sometimes more for older flats and houses. A state KredEx (now EIS) housing-loan guarantee can bring it down to 10%, and to 5% for large families (at least three children under 19).

There is also a rule that all your loan payments combined may be up to 50% of income (the bank stress-tests this at at least 6%) and the maximum term is 30 years. For example, on Estonia's median apartment price (~€110,000), 15% is ~€16,500 and 20% ~€22,000, while with the guarantee 10% is ~€11,000 — plus transaction costs.

Ask the bank for a pre-approval. It sets a clear budget and makes your offer credible to the seller.

Find the right home

Think through location, size and future needs, and check the area's realistic price level. The gap in Estonia is large — the median apartment is ~€3,400/m² in Tallinn, ~€2,800 in Tartu and much less in smaller towns. It is also large within Tallinn: Kesklinn and Kalamaja peak at ~€4,000–4,800/m², while Lasnamäe, Mustamäe and Väike-Õismäe sit at ~€2,600–2,900/m² — up to 2× within one city. Our market overview (incl. the Tallinn neighbourhood map) and area pages show each area's median and most active agents, so you know what's affordable.

Does the location suit work, school and transport in the longer run?
Will the flat still fit your needs in a few years (family, remote work)?
What is the building's condition, the apartment association's situation and the monthly costs?

The buying process step by step

Once you find the right home it usually goes: offer and agreement → reservation agreement and deposit → finalising the loan → the notarial transaction (real-rights contract + registration application) → an entry in the Land Register that formally transfers ownership.

The notary checks the legal side (ownership, encumbrances) and explains the terms. The buyer usually pays the notary fee (often split with the seller) and the state fee for the Land Register entry; both depend on the transaction value.

Frequently asked questions

How big a down payment do I need?: The regulatory minimum is 15% of the price, but in practice banks often want ~20% (more for older properties). With a KredEx (EIS) guarantee it can be 10%, and 5% for large families (at least three children under 19). The bank pre-approval gives your exact figure.
What is a KredEx guarantee and who is it for?: A state-backed (now EIS-administered) housing-loan guarantee that allows a smaller down payment. Target groups include first-time buyers, young and large families, and buyers of energy-efficient homes; the condition is that you don't own another home (or sell it within 12 months). The bank confirms eligibility.
What extra costs come with buying?: Beyond the down payment: the notary fee and state fee (both depend on the transaction value), a valuation report if the bank needs one, and moving/furnishing costs. Resale apartments carry no VAT (unlike new developments).

Find the best agents in your area — enter the property address and contact them if you wish.

Sources

By the Leia maakler editorial team · Last updated: June 2026. This is general information, not legal or tax advice; for exact terms rely on your bank, notary and official sources.