The Big Guide to Home Loans in 2025

Estonia's real estate market took a steadily upward course in 2025. Compared to last year, the number of transactions grew quarter by quarter gradually, and the price trend also moved in an upward direction. Buyers who had put their plans on hold in previous years due to high euribor rates have also returned to the market, and they now see an opportunity to make their dream home a reality, notes Anne Pärgma, head of home loan services at Swedbank.

Already in 2024, the decline in euribor brought positive emotions, but 2025 brought noticeable vitality to the market. By the second half of the year, euribor movements had become so routine that borrowers only paid attention to it as much as was necessary to monitor and pay their loan payments. By early December 2025, euribor was at 2.1%.

According to Eesti Pank, the stock of home loans grew by 10% in October compared to the same period last year. During the first ten months of 2025, people took out home loans 25% more than in the same period of the previous year.

Average home loan amount*

According to Swedbank data, the average home loan amount increased by 12,000 euros compared to last year, or 9%, reaching 138,000 euros.

It is quite understandable that regional differences in property prices are correlated with loan amounts. Real estate is most expensive in Tallinn and Harjumaa, where the average loan amount is 156,000 euros (annual growth 7%). This is followed by Tartumaa with 132,000 euros (annual growth 11%). Läänemaa has risen to third place with 113,000 euros (annual growth 37%), and Pärnumaa, which held third place last year, comes in fourth with 106,000 euros (annual decline 1%).

Percentage-wise, loan amounts have increased the most in Läänemaa (37%) and Ida-Virumaa (29%). Põlvamaa (24%), Lääne-Virumaa (19%), and Raplamaa (16%) have also shown notable growth in loan amounts, with average loan sums of 78,000 euros, 84,000 euros, and 106,000 euros respectively.

Outside Harjumaa, the average home loan amount is 87,000 euros. The county with the lowest average loan amount is Hiiumaa, where the average loan sum is 46,000 euros and has declined 31% compared to last year. Järvamaa holds second place in the table of the smallest average loan amounts, where the average loan sum is 58,000 euros, or 15% less than a year ago. Jõgevamaa is in third place with 65,000 euros, and it has moved in the opposite direction compared to last year: the average loan sum has increased by 14%. Compared to a year ago, average loan amounts have declined in three counties: Hiiumaa, Järvamaa, and Pärnumaa.

On average, a new home loan is taken for 24 years. This indicator has decreased by approximately one year compared to the previous year. Loans taken for up to 20 years account for approximately 40% of loans, loans taken for 21–25 years represent 18%, and loans taken for 26–30 years represent 42% of loans. The ranges are the same compared to 2024.

Apartment or house?

Across regions, a comparison of average loan amounts presents an interesting picture when purchasing an apartment or a house, whether a single-family, semi-detached, or terraced house. According to Swedbank data, the average home loan sum for purchasing an apartment is 123,000 euros and for purchasing a house is 190,000 euros.

In Harjumaa, the average loan sum for houses reaches 227,000 euros and for apartments 135,000 euros, which means growth of 15% and 6% respectively compared to a year ago. In Tartumaa, the average loan sum for house purchases is 180,000 euros, or growth of 9%, and for apartments 105,000 euros, or growth of 15%, which shows that while loan amounts in Harjumaa are increasing primarily through house purchases, in Tartumaa the percentage increase comes mainly from loans taken for apartment purchases.

In several counties, loans taken for house purchases or renovations remain considerably more modest. The average loan sum stays below 100,000 euros in four counties: 56,000 euros in Hiiumaa, 84,000 euros in Järvamaa and Jõgevamaa, and 94,000 euros in Viljandimaa.

The average loan amount for apartments exceeds 100,000 euros in only two regions – Harjumaa and Tartumaa, where the market is most active.

What was purchased?

Of home loans issued by Swedbank, 69% went to apartment purchases and 31% to house purchases.

Of apartments, in 2025 most residential spaces were located in older buildings: 57% of apartments were in buildings that were built or thoroughly renovated before 2000. 28% of apartments were in buildings that were completed or updated in 2000–2023, and 14% of apartments were in new buildings, that is, those built in 2024–2025.

Most frequently, 2- and 3-room apartments were purchased. 38% of apartments purchased with loans were 36–55 square meters, 36% purchased apartments of 56–75 square meters. Apartments over 100 square meters accounted for 3% of apartments purchased with loans.

Among houses purchased with home loans, there is a fairly even distribution. In 33% of cases, a new house or one recently completed, built in 2024–2025, was purchased, and in 31% of cases, a house completed in 2000–2022. 35% of borrowers purchased a house built before 2000.

In the house category, medium-sized homes are preferred. The most popular are 101–150 square meter houses (40% of buyers). 23% of loan buyers purchased homes up to 100 square meters, and 22% purchased 151–200 square meter homes. Houses over 250 square meters were purchased by 7%.

Average loan borrower

The average home loan borrower is, like last year, an actively working 35-year-old person. Those aged up to 40 years old account for 66% of loan borrowers, and their share has slightly decreased over the year (previously 68%).

By age group, the picture according to Swedbank data is as follows.

• Those aged up to 30 years old account for 25% of loan borrowers, and their average loan sum is 113,000 euros. Young people's average loan amounts increase with age: for borrowers up to 22 years old the average sum is 75,000 euros, for 22–25-year-olds 112,000 euros, and for 26–30-year-olds 151,000 euros.

• Those aged 31–40 years old are the largest group, accounting for 40% of all borrowers, and they also take out the largest loans, averaging 165,000 euros.

• Borrowers over 40 years old account for 35%, with an average loan sum of 128,000 euros, with those aged 41–45 having considerably larger loan amounts of 148,000 euros.

The average loan sum for loans taken with EIS (formerly KredEx) guarantee is 154,000 euros.

Although home loans are taken in all regions of Estonia, the most home loans are taken in Tallinn and Harjumaa, which together account for 62% of all loans. This is followed by Tartumaa with 16%. The share of these regions has grown by one percentage point over the year. Pärnumaa's share has remained at 5% for several years.

Borrower income

The financial background of borrowers paints a picture of how loan amounts and monthly payment burden are shaped. As net income, 36% of borrowers earn up to 2,000 euros per month, 49% earn 2,001–4,000 euros, and 15% earn over 4,000 euros.

It is worth noting that 43% of borrowers apply for a loan together, which means that when servicing the loan, both borrowers' incomes are combined. Of apartment buyers, 67% take out a loan individually, and of house buyers only 36%, which also explains differences in loan amounts: without a co-applicant the average loan sum is 107,000 euros, but with a co-applicant 166,000 euros.

The incomes of a household taking out a loan (alone or together) are distributed as follows:

• 25% earn up to 3,000 euros per month;

• 29% earn 3,001–4,000 euros per month;

• 20% earn 4,001–5,000 euros per month;

• 26% earn over 5,000 euros per month.

When looking at the relationship between income and loan burden, it appears that 39% of borrowers prefer that the loan payment constitute 31–40% of their income. At the same time, 45% tries to keep the loan payment at up to 30% of their income. In general, the total monthly payment of all financial obligations – loans, credit cards, installment purchases, etc. – can reach up to half of income.

Own contribution

According to Swedbank data, 52% of borrowers contribute up to 30,000 euros as own funds. For loans with EIS (KredEx) guarantee, where the minimum own contribution is 10%, the average own share remains around 18,000 euros.

In general, the average own contribution is 67,000 euros, with a median of 42,000 euros. Without EIS guarantee, the own contribution requirement typically starts at 15%, but with additional collateral, the own contribution requirement may also be absent.

Have loan conditions changed, is application easy?

When issuing loans, Swedbank is guided by the principle of responsible lending. It is important that the borrower's income is sustainable and the loan taken is affordable for them in the long term. The borrower's creditworthiness is assessed considering at least a 6% interest rate and assuming that up to half of income may be spent on monthly obligations. At the same time, borrowers often shape the possible loan amount based on their lifestyle and consumption habits.

Today, applying for a loan is easier than ever before: the application is made in online banking, consultation is provided by phone or video, the loan agreement is signed digitally in online banking, and notary services can be performed through remote authentication. Often the most difficult part is finding suitable real estate.

We are pleased to note that in 2025, almost 6,000 people's dream of owning a home or property was fulfilled with the help of Swedbank's home loan or home small loan. We wish all homeowners success and prosperity in the new year!

* Information as of 9 months in 2025.