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1. How big a credit can I receive? |
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As a loan for repairing your flat, you can receive up to 85% of the cost of your flat (without additional money investments). If you have decided to build a house, you can receive a loan in the amount up to 85% of the market value of the future real estate, i.e. the cost of the real estate upon completion of construction works. In this case, the loan will be paid in instalments in accordance with the construction process.
Minimum loan sum – 1 000 LVL.
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2. What will the interest rate be in my case? |
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The interest rate depends on many factors: chosen currency, term of inter-bank rate, loan sum, your income, loan term and whether it is flexible or fixed. Sign up for a free consultation or consult your specialists by the telephone 67 096 096 – they will offer you the most optimal variant.
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3. What is the loan term? |
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The loan term is from 1 up to 40 years.
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4. What bank and additional charges shall I take into account arranging a mortgage loan? |
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The bank charges only a single payment for preparation of monetary funds (price list). This payment can be executed from the loan sum. However, it is necessary to take into account additional non-bank related payments.
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5. How fast will a loan application be considered? How long takes arrangement and allocation of a loan? |
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ecision on loan allocation is usually taken within 1-4 working days. Upon approval of a loan with the customer, agreements are approved and singed. Changing of proprietary rights at Land Registration Book can take up to 4 weeks, mortgage registration – 1 week (usually these procedures are done at the same time). After the mortgage registration and arrangement of insurance (the bank offers IF Latvija insurance that can be arranged at your consultant), money, as a rule, is transferred to a customer’s bank account within 1 working day.
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6. I am worried about the increase of inter-bank rates and thus rising loan costs. How do I protect myself from it? |
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Nordea customers are in a privileged situation since Nordea is the first bank in Latvia that offers several solutions to avoid the thread of rising inter-bank rates and monthly payments:
1. Fixed rates
2. Insurance against rising inter-bank rates (for loans in EUR and USD)
3. Fixed monthly payments during the whole period of loan term (for a loan in any currency)
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7. What income do I need to receive a loan? |
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The monthly loan payment should not exceed 35% of the monthly income of a loan-subscriber. Income of other family members as well as income of guarantors is taken into account.
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8. Does the bank take into consideration the income of the other person if we are not officially married? |
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Yes! It is not important if you are not officially related with the other person. If your coaplicator is member of your family, his/her income takes in consideration for your mortgage loan.
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9. How does repayment of a loan take place? |
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Usually payments of a loan are executed on a monthly basis. If you wish to make a big purchase or go on a vacation, Nordea bank offers its customers to apply for “loan holidays” and to defer the repayment of the principal loan sum once a year.
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10. Is there a possibility to repay a loan ahead of schedule? |
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Yes! It is possible to repay the whole or a part of a loan ahead of schedule any time without any charges.
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11. What is the best currency for the loan? |
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It is advisable that a currency of a loan should be the same as a currency of your income. A loan in the other currency is related to currency risk – in case of currency exchange rate fluctuations, it is possible that the sum of your loan at conversion into lats in future can increase significantly. For example, 100 years experience of Finland and Sweden shows that many loan-subscribers, at the increase of the rate of a dollar as to the local currency, were not in a position to repay their loans and lost their property. Moreover, you lose money monthly for conversion.
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12. What are RIGIBOR, LIBOR and EURIBOR? |
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RIGIBOR is an inter-bank rate – an arithmetic average that is calculated from the quotations of interest rates of the largest Latvian banks. Inter-bank rates are calculated daily for the certain period, for example, for 1 week, 1 month, 3 months, etc. LIBOR and EURIBOR are also inter-bank interest rates calculated by London Bank Association and Central European Bank. These inter-bank rates reflect the objective money value on the market.
Inter-bank rates are the same for all the customers in Latvia.
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13. Can another property serve as a mortgage? |
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Yes. Especially in the cases when market value of the property being repaired or purchased is lower than the loan sum.
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14. Is evaluation of property necessary in my case? |
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When buying a housing space, in some cases, evaluation can be already available for the bank. Also, this is true for some standard type flats. In case of a small loan, additional evaluation also may not be necessary. Please, clarify this question with your consultant at Nordea. In case evaluation is necessary, there is a list of evaluators we prefer since we trust these companies and have a long-term cooperation experience with them. The list of evaluators is available at customer service centres, in the internet or by calling
67 096 096.
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15. Can I receive a loan for repair, construction and acquisition of housing outside Riga? |
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Certainly. Nordea has a wide and constantly growing network of affiliates around Latvia, making loans available to all the residents.
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16. How does the allocation of a loan take place during the process of construction? |
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Loan repayment takes place following completed stages of construction works. An interim assessment is executed, which is compared with the cost estimate. Then a customer is paid another part of a loan. If a customer cannot hire a person to supervise construction him/herself, the bank can offer one of its partners. The list is available at customer service centres and by telephone 67 096 096.
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17. Can a loan be received for acquisition of land? |
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Nordea provides loans for acquisition of land for housing construction.
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18. Is there a possibility to sell, change, or present a property the loan for which is not settled yet? |
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There is such a possibility. Please, contact our consultants.
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19. How secure is to apply through the internet? |
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The customer’s data is coded by means of coding technology SSL and is not accessible for other persons.
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20. What do you need to do in case the decline in household income creates a danger to timely repayment of a credit? |
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No matter what are the reasons for decline of your household income, you need to inform the bank promptly, especially when you might experience problems with making the monthly payments. The bank will offer the best solution to avoid the critical situation. There are several options allowing postponing or reduction of the monthly payments. It is important that you state your real financial situation, so we could together find the most appropriate option. The bank is interested in helping its clients, because it creates successful partnership and helps to avoid losses. Credit debts hurt both – the client and the bank!
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21. What are the solutions offered by the bank in case the credit payments are delayed? |
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In case of payment delays the bank will offer several options to ease the financial burden on the household. The choice is wide – capitalization of debt, extension of the credit loan term, delay or reduction of the payments of the principal, lower interest payments. Each option will lower the ongoing monthly payments; however, keep in mind that paying less today means paying more in the future.
Each case is special, therefore, every option must be considered together with the bank. Make everything clear – talk to your Nordea consultant! Finance management requires confidence; make sure the bank consultant dismisses any uncertainties before you make a choice.
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22. What happens when the clients experiencing difficulties repaying the credit do not inform the bank? |
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If the bank does not know about the difficulties you are experiencing, be ready for the late payment penalties instead of the bank’s forthcoming. Moreover, the situation can result with legal suit against your property in a period from two to six months. You will also have to cover the legal costs and the difference between cost of your property and your credit obligations. The information about the late payments will be sent to the Credit Registry of the Republic of Latvia. Lack of cooperation with the bank will bring the financial losses to you and will complicate the financial transaction in future.
Learn more about security from our consultants.
Telephone 67 096 096. info@nordea.lv
