The surety of KredEx can be used by people who belong to a target group listed below. If there is more than one borrower, at least one borrower must belong to the target group.
Description of the target group
Document that certifies that the borrower belongs to the target group
||A single parent or parents jointly or separately who raise(s) at least one child of up to 15 years of age (inclusive), whereas a guardian is also considered to be a parent.
||The child’s birth certificate or a corresponding extract sent from the environment of the eesti.ee state portal.
||An employed person of up to 35 years of age (inclusive), who has acquired higher education, secondary specialised education or vocational secondary education (based on basic or secondary education) or completed vocational training (based on basic or secondary education) or vocational training of level IV and V.
||A document certifying education, which is a certificate or a diploma or a corresponding extract sent from the environment of the eesti.ee state portal.
In the case of a level of school education finished outside of Estonia, a certificate from the Estonian Education Information System from the Estonian National Academic Recognition Information Centre.
Veterans of the Defence Forces or the Defence League
||A veteran is a person who has served in the Defence Forces and the Defence League, been on foreign missions, or been injured while in the service of the Estonian Defence Forces (for further information, see www.kredex.ee).
||A notice about belonging to the target group of veterans issued by the Support Services Centre of the Support Command of the Estonian Defence Forces.
|Purchaser of energy-efficient housing
||The energy performance label of the property being purchased must be at least C.
||Digitally signed valid energy performance label of the residential building.
Intended purpose of use of loan
The intended purpose of use of a loan with surety of KredEx is purchasing permanent housing.
Use and more important terms and conditions of surety of KredEx
The scope of the surety may be up to 24% of the market value of the collateral property, but not more than 20,000 € in the case of the target group of Young Family, Young Specialist and Veterans of the Defence Forces or the Defence League and not more than 50,000 € in the case of the target group of Purchaser of energy-efficient housing.
The monetary rate of self-financing is a minimum of 10% and the borrower must have this amount before the purchase and sale transaction of the immovable property.
The surety of KredEx reduces respectively by each repaid payment of the principal amount and terminates when the principal amount of the loan has been repaid in the amount of the sum of the surety.
Use of the surety of KredEx is for a charge and the borrower pays for it to KredEx a collateral fee at the rate of 3% of the amount for which surety has been provided. The bank withholds a collateral fee from the borrower’s current account (servicing account) upon payment of the loan amount or the first part thereof. The amount of the collateral fee is also taken into account in the initial annual percentage rate of charge and total cost.
During the term of surety of KredEx, the borrower also undertakes to coordinate with the bank in writing in advance any residential and commercial lease agreements to be concluded with regard to the collateral property. The bank has no right, without prior permission of KredEx, to grant consent to the borrower for encumbering the collateral property with any third party rights (e.g. conclusion of residential and commercial lease agreements, establishment of an additional mortgage for the benefit of another creditor, establishment of a personal right of use, etc.). The borrower must take into account the fact that since a loan with the surety of KredEx constitutes a state-guaranteed housing loan within the meaning of the Support of Enterprise and State Loan Guarantees Act (i.e. the loans have been meant for improving the living conditions of people belonging to a certain specific target group), consent will be granted to the borrower for the conclusion of contracts for transferring and encumbering the collateral property only in exceptional cases.
The contract of suretyship is concluded along with the loan agreement and the parties to the contract of suretyship are the bank, the borrower and KredEx.
In the case of any further questions, turn to a bank employee or examine information at www.swedbank.ee/kodulaen/ and www.kredex.ee.