Home loan manager Anette Saiko's journey to her first home

When you start thinking about buying your own home, it often feels like a big leap into the unknown. In reality, however, buying a home does not begin with opening a real estate portal or visiting a bank office, but much earlier. It begins when you ask yourself whether you are ready for this?

Anette Saiko, Youth Segment home loan manager at LHV has been in exactly the same situation as many of our young customers: on the way towards her first home. And so, every day, she experiences the questions and doubts that come with her decision.

Anette has always loved to write down her dreams: ‘About five years ago, I set myself the goal that when I turn 25, I would buy my very first home, exactly as I had imagined it. It doesn’t have to happen right away, but I’m going to start taking real steps toward it.’

For quite some time now, Anette has been keeping an eye on property developments, desirable neighbourhoods, property portals, and even her friends’ homes. By researching independently and taking an interest in the topic, you gain the best understanding of the matter. ‘And most importantly: I dare to dream, but I also work every day for this, to truly make those dreams a reality,’ she adds.

What is the first step?

The journey of buying an apartment and applying for a home loan begins with a fair assessment of your financial situation and possibilities—these are the words Anette always says to customers.

She has an almost endless list of topics to delve into.

• Review your income, expenses, and habits, and figure out what kind of home you want in the future.
• It is important to understand what is happening in the real estate market, what the prices and your options are.
• In addition, make sure you understand all one-off accessory expenses associated with the transaction, such as the notary fee, valuation report, agreement fees, home furnishing costs, etc.

An overview of these topics provides an excellent picture of the expenditures a first-time home buyer needs to make, in addition to the down payment to get a home loan.

‘I’ve been actively saving money for almost five years and have figured out my own “why”: why am I doing this, where will it take me, and what will I achieve by doing it?’ says Anette. Her mindset has always been that achieving a goal doesn’t necessarily mean spending less; it means finding ways to earn more. How to create these opportunities is up to each individual.

Before joining LHV, Anette was actively involved in dancing and coaching. ‘I have been involved in competitive dance all my life and started as a coach at a young age,’ she says. Even now, Anette teaches Latin dances to adults in the evenings. This has grown into her own dance studio, Flowé, which, as a result of consistent work, has become a successful venture. Anette has joked that one day she’ll first buy a commercial property and only then a home.

In addition to training, Anette spends her weekends doing competition dancers’ hairstyles and make-up, and has started ballroom dancing courses. During the day, she advises customers at LHV on home loan topics, while in the evenings she enjoys teaching dancing. ‘When there are things in life that give you energy and make your eyes sparkle, no day feels like just work, but rather an opportunity to do what you truly love,’ says Anette.

A monthly payment is not just a number, there is something much more important behind it

When planning a home loan, it’s worth to start by figuring out what monthly payment you can comfortably afford. ‘I am often asked how much of a loan a bank would give me. Actually, the first question could be: what kind of monthly payment suits my everyday life even if unexpected expenses arise or something else changes in my life?’ explains Anette.

Once the monthly payment is set, you can use it to estimate a realistic loan amount. Striving for the maximum loan amount can lead to a situation where your monthly budget becomes too tight and leaves little room for unexpected expenses.

When taking a loan at a young age, it’s worth thinking about the future, as the first property you buy doesn’t have to be your forever home. Often a young person’s career is still in its early stages and their income may increase over time, for example, after obtaining a higher education and gaining work experience.

‘In the case of the KredEx guarantee, I encourage young people to study what advantages the obtaining of education can bring in the future. It does not have to be higher education, vocational education is also suitable,’ says Anette, a home loan manager advising young people. All such additional details will provide more flexibility in the future, whether it is a smaller down payment for a loan, faster repayment, reviewing the terms, or buying your next home.

Anette has figured out what kind of monthly payment suits her, and shares the main questions she asked herself before making this decision.

• Should I take out the loan alone or with my partner?
• Can I provide additional collateral and take the first steps based on that?
• Are there suitable apartments in my desired area?
• Could I make loan repayments using only additional income?
• What are the costs of buying a home? When you buy an apartment in a new development, it usually comes unfurnished. Have I set aside money for furnishings as well, that is, how much do tables, chairs, a TV, kitchen furnishings and a washing machine cost?

At the same time, you shouldn’t base your decisions today solely on future expectations. It is safer to base decisions on your actual current income and leave a sufficient buffer in your budget. In addition, you should bear in mind that interest rates may change over time. This means that the monthly loan payment may not remain the same throughout the entire loan period, but may increase.

What are the signs that it might be the right time to take out a home loan?

There is no single ‘right’ time to take out a home loan. Still, there are some signs that indicate that you’re getting close:

• you have stable income,
• you have been able to save regularly,
• you have an overview of your expenses,
• you know what price range you can afford for a home.

‘Often, a young person’s first home is not a final solution, but rather an interim stage. It is important that it matches their possibilities and supports the next steps in their life, rather than limiting them,’ summarises Anette, the home loan manager for the youth segment.

If you wish to have a phone consultation with Anette, please fill in the application on the LHV website so that we can address your questions more personally during the call. Also, please include the name of home loan manager Anette Saiko in your application. You do not need to have an apartment selected to submit an application. We are here for you and will go through all the difficult parts together.

Please send the filled in application to me at anettes@lhv.ee, so that we can process it right away.