How big a down payment is needed?

At least 15% of the price; 10% with a KredEx (EIS) guarantee and 5% for large families. The rest is covered by the bank loan (up to 85–90% of the collateral value).

Fixed or Euribor-based interest?

A Euribor-based rate moves with the market; a fixed rate gives predictability at a higher price. The choice depends on your risk tolerance — the bank will explain the impact on the monthly payment.

Guides

Getting ready for a mortgage in Estonia

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

A well-prepared application gets you a better rate and more certainty. Here are the Estonian rules and the steps to start with.

In short

Bank of Estonia limits: loan payments up to 50% of income (DSTI), loan up to 85% of collateral (90% with guarantee), term up to 30 years.
Down payment: minimum 15%, in practice ~20%; 10% with a KredEx (EIS) guarantee, 5% for large families.
Compare the total cost across banks, not just the rate: margin + Euribor + fees.

Assess your borrowing power (Bank of Estonia rules)

The Bank of Estonia sets clear limits banks must lend within: total loan payments up to 50% of income (DSTI; calculated at an interest rate of at least 6% to allow for rises), loan up to 85% of the collateral value (90% with a guarantee) and a maximum term of 30 years.

Banks also look at the stability of your income, existing obligations and payment behaviour. Before applying, reduce small loans, instalments and unused credit-card limits — even an unused limit lowers your borrowing power.

Build the down payment and budget for transaction costs

Beyond the bank loan you need a down payment — in Estonia at least 15% of the price, 10% with a KredEx (EIS) guarantee and 5% for large families (at least three children under 19). The guarantee covers part of the collateral for the bank (up to 24% of the collateral value, usually up to €20,000; more for an energy-efficient home), and the condition is that you don't own another home.

Set aside money for transaction costs too: the notary fee and state fee (both depend on the transaction value) and a valuation report if needed. For example, on Estonia's median apartment price (~€110,000), the down payment is ~€16,500 at 15%, ~€22,000 at 20% and ~€11,000 with the guarantee.

Compare bank offers

Get offers from several banks and compare not just the "rate" but the total cost: the bank margin + Euribor, contract and management fees, and early-repayment terms. Even a small difference in margin means thousands of euros over 30 years.

Frequently asked questions

How big can the monthly payment be?: By Bank of Estonia rules, total loan payments may be up to 50% of income (DSTI), calculated at an interest rate of at least 6%. The bank sets the exact limit based on your income and obligations.
How big a down payment is needed?: At least 15% of the price; 10% with a KredEx (EIS) guarantee and 5% for large families. The rest is covered by the bank loan (up to 85–90% of the collateral value).
Fixed or Euribor-based interest?: A Euribor-based rate moves with the market; a fixed rate gives predictability at a higher price. The choice depends on your risk tolerance — the bank will explain the impact on the monthly payment.

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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.