How Much Loan Will I Get?

Today it is nearly impossible for young people to buy an apartment with self-financing. Let's imagine Karl and Johanna. Johanna is 27 years old and works as a web designer at a startup. Karl is a 30-year-old Estonian language teacher at a small school in central Tallinn. Or rather, he was. Karl currently works from home every day. They recently had a little daughter, Emilia.

The three of them currently live in a 2-room apartment in Mustamäe, but they are inevitably thinking about moving. They would like a three-room apartment for themselves that would be a bit closer to the city center in terms of location. With their savings, which have accumulated to about 30,000€ over time, they could have found a nice home with a down payment years ago. But in an unforeseen rise in real estate and electricity prices, they suddenly found themselves in a difficult situation.

They thought that in addition to their savings, they would need to take out a home loan. But how much loan can we get? "How much loan could I get with my salary?" Johanna thought. First, they typed "loan calculator" into Google and started figuring it out. They figured and figured, but after half an hour of calculating, it still wasn't entirely clear how much loan they would be given.

So what ultimately affects your loan amount? Dealing with big banks is bureaucratic and impersonal. Several offers were made to our young family by banks, but the loan amount was not sufficient to buy their apartment. Life went on and when Emilia was turning 3 years old, living in a 2-room apartment became almost unbearable. Karl even started driving for Bolt in the evenings to save even more money. Ehital Krediit – a small and flexible financial institution that rescued them from their predicament – came to their attention quite by chance. It turned out that you can apply for a loan to buy a home in a different way.

Karl's parents own a cottage in Haapsalu. No one lives in the cottage, but it turned out that it can be used to apply for a home loan. In the case of a mortgage – a loan secured by real estate – the loan money can be used without restrictions. The cottage was not acceptable collateral for banks, but Ehital Krediit made them an offer that suited them perfectly. Ehital gave them a sum secured by the cottage, which amounted to 65% of the cottage's value. Ehital also understood their situation – both had stable jobs, personal savings, and Karl's parents' unused cottage – and they were given an individual repayment schedule.

Two weeks later, Karl and Johanna celebrated their daughter's third birthday already in their new apartment. Grandma and Grandpa also came to visit from Haapsalu. That was Karl and Johanna's story. How much loan do you get and how do you bring change to your life with it? The loan amount generally constitutes up to 70% of the market value of the real estate offered as collateral and also depends on your income as a borrower. With additional collateral, it is possible to reduce your share of self-financing. Fill out a loan application, come to Ehital Krediit loan consultant and let's discuss.