18.12.2025
Since the end of May 2024, LHV Pank, in cooperation with the European Investment Fund (EIF), is offering apartment associations a low-cost renovation loan to improve the energy class of apartment buildings and reduce energy consumption. This year, with the support of LHV, this work was carried out in 130 apartment buildings across Estonia, totalling more than 60 million euros.
There are over 3,000 apartments in the buildings that are being renovated. There are 24 apartments in an average housing association that took out a loan, and the average association took out a loan of approximately 320,000 euros for 28 years. Over the course of a year and a half, LHV, together with EIF, has already financed the renovation of 174 apartment buildings in Estonia.
According to Marko Kiisa, Head of SME Financing at LHV, this is the largest volume of renovation loans that LHV has issued in one year. “We have financed vibrant communities from Kõrgessaare to Värska. Full renovation of an apartment building is an expensive activity, even with the support of the state, which is why we support apartment associations with a very favourable interest rate and flexible loan process. We understand that it is difficult for them to convince apartment owners that the condition of the house is constantly deteriorating and that energy loss is increasing. However, postponing renovations is becoming more and more expensive every year,” Kiisa said.
Almost three-quarters of the Estonian population live in apartment buildings, and nearly half in buildings that need renovation. The biggest energy savings are generally achieved through full renovation, where, in addition to insulating the façade, the building’s utility systems, including ventilation, are also upgraded.
“Repairing the house in its entirety almost always leads to a higher monthly loan payment for the apartment owners, and this is the main reason for their opposition. However, increased energy efficiency also leads to savings in energy costs, which helps to cover part of these costs. On average, the energy consumption of a house decreases by as much as 52%. When it comes to the loan discount margin for full renovation, compared to the normal loan margin, it also provides savings of about 8 euros per average apartment every month. In addition, the quality of life improves: the air in the apartment is better and the temperature is more stable, possible mould and excess moisture are eliminated, and the house is in order and looks good. All this increases the value of apartments,” Kiisa said.
To improve the energy class or reduce the energy consumption of apartment buildings, LHV offers a loan with an interest rate of 1.29% + 6-month Euribor.
In addition to apartment associations, LHV Pank also provides loans to small and medium-sized enterprises on affordable terms under the EIF’s ‘Sustainable loan’ sub-programme. The purpose of the loan is to finance sustainable activities such as the reduction of industrial energy consumption and the renovation of commercial buildings, as well as investments in the creation of renewable energy generation capacity and storage solutions.
Within the same sub-programme, LHV Pank also offers leasing to private clients for the purchase of electric vehicles and to businesses for the purchase of both electric and hybrid vehicles, if the vehicle is up to two years old and is acquired for normal use.
Find out more: https://www.lhv.ee/en/apartment-association-loan
LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited. The Group employs over 1,100 people. As at the end of November, LHV Pank’s banking services are being used by 486,000 clients, the pension funds managed by LHV have 107,000 active clients, and LHV Kindlustus protects a total of 229,000 clients. LHV Bank, a subsidiary of the Group, holds a banking licence in the UK and provides banking services to international financial technology companies, as well as loans to small and medium-sized enterprises and retail banking services.
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