Youth home loan

You’ve just taken a step closer to becoming a homeowner. Here are some tips to help you get even closer to realizing your dream.

Pros and cons of taking a home loan in your youth

Recommendations for saving toward your down payment

The earlier you start saving, the faster you’ll have the amount in hand. The earlier you take a home loan, the more flexible the terms we can offer. For example, you can set aside 10 euros every month. As your income grows, you will find that you are already in the habit of saving and you can set more aside.

Start today

Don’t rush to move out of your parents’ house, stay there as long as you can. That will allow to set aside money that would otherwise be spent on rent. If you need to leave home for university, opt for a dorm or sharing a rental with friends.

Downsize your current living costs

If you’ve decided to put money aside, don’t keep it on your everyday bank account. Its real value will depreciate over time. Use the LHV Savings Account, where money will earn 2% interest annually. That’s not a lot, but at least your money will keep up with inflation.

Savings Account

Do you feel the 2% interest rate is insignificant and that you have the appetite for risk? You can reach your goal of saving faster with the Growth Account – money tends to grow faster when investing than by saving. When you sign a home loan agreement at LHV, we waive the service fee for selling assets on your Growth Account.

What if your own income isn’t enough to get approved for a loan?

KredEx

If you’re 35 or younger specialist in your field, we can offer you a home loan secured by KredEx for a lower down payment (as little as 10%). Visit the KredEx website to read about the details.

Get a parent to co-sign

It’s possible that your income will not be enough to borrow the amount you’d like. Besides surety from KredEx, you can also ask your parent to co-sign, which will give you more financial flexibility and increase your chances of being able to buy the home of your dreams.
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How should I choose a home loan provider?

It might seem logical to base your decision on whoever has the lowest interest rate, we recommend also considering a few other factors.

Additional costs of taking a loan
Besides interest rate, signing fee and home insurance cost also depend on the lender. Since all the extra costs can add up to thousands of euros (along with expenses that don’t depend on the lender, such as property appraisal, reservation fee and notary fee), it’s worth saving wherever you can and comparing these costs across different lenders.
For LHV customers aged 25 or under, the home loan contract fee is €0, and home insurance comes with a 5% discount.
Fees for changes to loan agreement
Be sure to find out how much it will cost to amend your loan agreement at a certain lender. At LHV, fees for changes start at 100 euros.
Early repayment charge
Will your lender dock you if you should want to repay the home loan earlier than the end of the term? At LHV, there’s no penalty for early repayment.
Customer service
LHV offers clients the best service on the market. Customer satisfaction with our service and products is very important to us. Our clients feel that we understand their needs and interests and that their loan account manager is always there for them, a financial partner who can be trusted.
Other products and services, online banking and mobile app
A responsive and user-friendly mobile app saves your time. People value convenience and being able to get their banking done in a location-independent manner – from home, work or abroad.