As the real estate market is recovering in the Baltic States, Bank SNORAS is expanding the range of the banking services and from Monday it will begin providing housing loans to natural persons in Latvia and Estonia.
“While expanding the range and functionality of the products provided by Bank SNORAS, from now on we will also be offering housing loans to the clients in the bank's branches in Latvia and Estonia. We are a new player in these markets; therefore, we expect to see a reserved growth of the housing loan portfolio in the neighbouring Baltic States in the nearest years,” says Deividas Šipaila, the director of Bank SNORAS Sales Department.
According to the established conditions of the housing loans of Bank SNORAS Latvian branch, the maximum financed sum seeks up to 80 per cent of the pledged assets value. The minimum sum, which residents will be able to borrow for real estate, is 10,000 Latvian lats (about 49,000 litas), while the longest borrowing term is up to 40 years. If necessary, it will be possible to postpone the loan payments for 12 months; the loan can be repaid in the linear or annuity method, whereas the size of the client's obligations will not have to be more than 40 per cent from the receivable income.
In Bank SNORAS branch in Estonia, residents will be able to borrow up to 95% of the pledged assets value for housing, while the minimum sum, which residents will be able to borrow for housing, comprises 10,000 euros (34,528 litas). Other conditions of borrowing housing loans are the same as in Bank SNORAS Latvian branch.
“We can offer competitive conditions of borrowing housing loans in the neighbouring markets of the Baltic States. It is one of the reasons why we have decided to turn to this market,” emphasizes D. Šipaila.
According to him, the real estate market in Lithuania is gradually recovering; therefore, clients are actively taking loans for housing. During the third quarter this year alone, in comparison to the second quarter in 2011, Bank SNORAS portfolio of housing loans grew by 12%. Within 10 months of this year alone, in comparison to the same period last year, the portfolio of the housing loans issued by the bank in Lithuania increased by 2.5 times.