Coop Bank Created a Home Loan Aimed at Police Officers, Firefighters and Active Military Personnel
Coop Bank will offer police officers, firefighters, active military personnel, and Civil Guard members favorable terms with flexible options for the Home Defender home loan, with an interest margin starting from 1.49%.
Starting February 24th, Coop Bank is offering a home loan on favorable terms to people working in internal security and national defense. The Home Defender home loan interest rate starts from 1.49%, to which 6-month Euribor is added. The loan has no contract fee and early repayment is free of charge. Additionally, the bank covers up to 100 euros of loan payment insurance costs for home defenders in the first year, which provides additional peace of mind in cases such as prolonged illness or job loss.
All home defenders have the option to repay the home loan according to a personal payment schedule, meaning they can skip loan payments or pay only interest during the first two years. Choosing a personal payment schedule helps keep monthly payments low at the beginning of the loan and simplifies both purchasing and furnishing a home.
Coop Bank's head of home lending business Karin Ossipova stated that offering home loans on favorable terms to police officers, firefighters, active military personnel, and Civil Guard members on a permanent basis is based on the bank's values and desire to contribute to the successful functioning and development of Estonian society. "Police officers, firefighters, active military personnel, and Civil Guard members play a major role in Estonia's security, but purchasing a home can be difficult. Coop Bank wants to offer them peace of mind and better loan terms so that all our defenders can get a home for themselves and their families that they deserve," said Ossipova.
The Home Defender home loan can be applied for by all police officers, firefighters, active military personnel, and Civil Guard members for purchasing, building, renovating a home, as well as refinancing an existing home loan.
A Home Defender can be either the primary or co-applicant of the loan. It is important that one of the loan recipients works in the Defense Force (active military personnel), the Rescue Department (rescue service personnel), the Police and Border Guard Board (police and border guard officials, emergency center employees), or is a Defense Force veteran, Civil Guard or Women's Home Guard member, or a volunteer firefighter.
The Home Defender home loan can be applied for together with various guarantees for housing loans from the Enterprise and Innovation Foundation (EIS, formerly KredEx), which can significantly reduce the down payment for a home loan. "Among the more popular ones are, for example, the young specialist guarantee, the young family guarantee, and the large family guarantee. EIS also offers a home loan guarantee for Defense Force and Civil Guard veterans who have been on foreign missions or been injured while serving in Estonia. Home defenders living far from employment centers can use EIS's rural area housing loan guarantee to reduce down payment requirements and the co-loan offered by the Rural Development Foundation (MES) – both make building a home easier especially in areas far from major cities," said Ossipova.
Since 2024, Coop Bank has also been offering home loans on favorable terms to teachers. Last year, one in ten new home loan contracts at Coop Bank were concluded with a general education school or kindergarten teacher, and such loans were issued throughout Estonia in all counties.
Source: cooppank.ee
