Bank CEO: Parliament is making changes to the law today, now is the right time to fight for lower mortgage payments

Today, there is a first reading of a legislative amendment in the Riigikogu that aims to reduce the costs of transferring a home loan from one bank to another. The time has come to compare current home loan contract terms with offers from competing banks, so that we can benefit from the legislative amendment that is expected to enter into force on July 1st, comments Arthur Taavet, the head of Bigbank Estonia.

According to Arthur Taavet, in a situation of continuous growth in other housing costs, reducing the monthly home loan payment is one of the simplest ways to keep a family budget in balance. "There are many different options for this, since we can discuss both the loan period and other terms. Bigbank even offers a special payment schedule option where, for example, in the first five or ten years, the borrower only pays interest and the principal repayment begins only years later. By that time, the expected income of family members has presumably increased and inflation has reduced the value of money," says Arthur Taavet, for whom loan money is actually a commodity like any other. "The euros of a large foreign bank are in no way better than those of a good Estonian bank. It only matters who puts in more effort to make the most suitable offer for the client," Taavet sums up the topic.

"Competition between banks really exists and the monthly loan repayment following an existing contract can certainly be discussed to be smaller if desired. The law expected to enter into force in mid-summer will now also make switching banks more affordable, since the borrower will be spared the notary fees that have accumulated so far," emphasizes the head of Bigbank Estonia, for whom it is the right time to start collecting and comparing different offers, so that in July you can conclude a new contract with the best provider.

Today, there is a first reading of a bill in the Riigikogu, the purpose of which is to make the refinancing of residential loans easier, faster and cheaper, and to increase competition in the lending market. To this end, the Law of Property and its implementation law will be amended so that when transferring a residential loan from one bank to another, notarial certification is no longer required if the borrower and the collateral remain the same and the terms do not become less favorable for the client. The necessary agreements can henceforth be concluded digitally. The law is expected to enter into force on July 1, 2026.