Home Equity Loan

We want you to pursue your goals with care

You can borrow a larger amount of money for your different needs

Under certain circumstances you can postpone payment of instalments

Professional advice from our experts

Check your opportunities to borrow and calculate the approximate loan amount you can get

Typical example for calculating annual percentage rate

If a loan of EUR 100,000 secured by real estate collateral is granted for the period of 25 years and 300 loan instalments based on the annuity method will be made, the total amount to be paid by such borrower will make EUR 169,926.84, monthly instalment – EUR 559.60. The annual percentage rate will make 4.79 per cent. Annual percentage rate showing the total cost of a loan is calculated by including the below instalments made within the entire loan period:

4.5 % variable interest
EUR 0 agreement fee
EUR 8.6 mortgage (pledge) registration fee
EUR 1 per month minimum fee for main banking services
EUR 70 dwelling insurance annual premium

Note. Property valuation costs and the commission for the services provided by a credit intermediary are not included.

Annual percentage rate and the total amount to be paid by the borrower are calculated considering that the loan is disbursed on the agreement signature date and that the terms of the agreement, interest rate and fees do not change within the entire loan period, and the terms and conditions of the agreement are timely implemented. If you fail to fulfil or unduly fulfil the terms of the loan agreement, the risk exists that you may be deprived of the ownership right to the pledged real estate. The mortgaged real estate must be insured in favour of the bank during the entire loan period.

What SEB offers

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Interest rate is set individually
Possibility to delay principal payments
You can make a full or partial loan early repayment in the internet bank, as well as conveniently change monthly payment date and account

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More about home equity loan

Price list

Home loan and loan to private individual (subject to real estate pledge)

Annual interest rate	fixed on individual basis
Contract fee: loan issuance increase in loan amount	0.4 percent of the loan amount, at least EUR 200 No fee applies for Green home loan
Commitment fee	0.4 percent per year of the undisbursed loan amount
Fee for a consent to provide a second ranking pledge of property to another creditor	EUR 150
A change of payment day	Free of charge
A change of repayment account	Free of charge
Other amendments to the terms and conditions of the loan agreement	EUR 200
Loan deferment	Free of charge
Discharge of mortgage through VĮ Registrų centras system	Free of charge (the fee by Registry center)

Amendment to terms and conditions of a loan agreement in case of:	If variable interest rate is applied:	If fixed interest is applied:
a change of fixed interest rate with variable interest rate and vice versa a change of variable interest period a change of loan currency	0.4 percent of outstanding loan, at least EUR 200	year(s) until expiry of fixed interest rate period - percent of outstanding loan, at least EUR 200
		up to 5 year (inclusive)up to 5 year (inclusive) - 1.5
		6–10 (inclusive) - 3
a change of variable interest rate margin or fixed interest rate	0.4 percent of outstanding loan, at least EUR 200

Prepayment fee

At variable interest rate that varies all throughout the loan period	not applied
At variable interest rate which is established for the initial period and which, upon expiry of the initial period, varies throughout the remaining loan period	over the initial period – statutory fee (The Rules for Calculation of Compensation), however, not more than 3% of the amount of the prepaid loan or any part thereof not applied upon expiry of the initial period
At fixed interest rate	statutory fee (The Rules for Calculation of Compensation), however, not more than 3% of the amount of the prepaid loan or any part thereof

Other services

Documentation related to a credit agreement: certifications, official letters, consents, permissions, approvals	EUR 30.00
Uninsured Collateral Administration Fee (applied if a collateral is a residential real estate object)	EUR 20.00 per month The fee is charged if the collateral is not insured for more than 30 days

Conditions

Basic lending conditions

Requirements for the borrower

Loans are available to adult nationals of the Republic of Lithuania and individuals with a permit of permanent residence in Lithuania who are receiving permanent income, in particular:

wages
other regular income received under author's agreements, from business activity, lease and otherwise supported by relevant documentation

The total amount of monthly instalments paid to various credit institutions should not exceed 40 per cent of your total monthly net income.

Amount and maturity

The amount and maturity of the loan depend on the value of mortgaged property – we can lend you an amount equalling 60 per cent of the value of mortgaged property. The available maturity is up to 15 years.

The loan amount also depends on the assessment of the family’s financial capacity to repay the loan.

Currency

Loans are available in euros.

Interest

When signing a loan agreement, you may select the interest rate: variable or fixed.

Variable interest may be of two types:

fluctuates within the entire loan period. It includes the bank margin individually approved for you and 3, 6 or12 month EURIBOR (Euro Interbank Offered Rate) selected by you. Variable interest portion EURIBOR will be fixed for the first time on the drawdown date of the first loan portion and will be effective until the following interest rate adjustment date. On other interest rate adjustment dates, the variable interest portion will be newly fixed. The variable interest portion will be fixed based on EURIBOR valid two business days ago. If the value was negative, it will be considered that the variable interest portion is zero.
fixed for the initial period and after its expiry will fluctuate within the remaining loan period. It includes the interest rate individually approved for you on the loan agreement signature date, which is effective within the initial period of 2, 3, 5 or 10 years selected by you, and after its expiry, the variable interest portion fluctuates within the remaining loan period as specified above

Fixed interest rate may be approved, if your loan period does not exceed 10 years. Fixed interest rate selected by you will be approved for the entire credit period.

Interest will accrue on the outstanding loan, and we will calculate it considering that a year consists of 360 days.

Both a new fixed and variable interest will be determined depending on the situation in the lending market, the loan amount maturity, assessment of your financial potential, individual credit risk, and also on the number and type of services provided to you by SEB Bank.

Securities

Repayment of the loan is normally secured by taking out a mortgage against housing. Requirements:

The value of the mortgaged immovable property must be established by property valuers
Mortgaged immovable property (other than parcels of land) must be provided with insurance coverage from a property insurance company

Loan repayment

Once the bank has disbursed the funds of the loan, your instalments will be debited from your chosen account on the agreed payment dates. The first instalment is interest only.

Repayment methods

Linear method The principal is divided into equal portions, which are paid every month. Interest accrued on the outstanding loan portion for the actual number of days will be added to it (the lower the outstanding loan, the lower interest will accrue on it). So over the entire term of the agreement the monthly instalments are gradually decreasing.	Annuity method The same amount of instalments is paid every month, consisting of the principal and interest. At first interest comprises the larger part of the instalment. It gradually decreases while the principal is increasing, but the amount of the monthly instalment does not change. In calculating the instalment amounts, it will be considered that a year consists of 360 days.
Example of the composite parts of a credit instalment and their change in both cases

If you can afford higher instalments from the beginning, it is worth choosing the linear method because the amount of interest paid will be lower over the whole term.

Grace period

If you are facing an emergency, you can file us a request to postpone payment o instalments without changing the final loan maturity date. During the grace period only interest is payable.

Emergency:	Grace period:
you lose job	up to 6 months
your income drops	up to 6 months
family loses breadwinner (spouse)	up to 12 months
you become incapacitated, partially incapacitated or become ill and can’t work for more than 2 months	up to 12 months We recommend aligning the credit grace period with the period you can’t work
childbirth	up to 6 - 12 months
aftermath of fire or other natural disasters	up to 12 months
you start studying	up to 3 months
divorce	up to 6 months
in case of compulsory initial military service	within the entire period of compulsory military service

Self-Service on the Internet Bank

On our Internet Bank you can conveniently manage your loan agreement on your own:

change the loan payment day
change the repayment account
make a partial or full loan prepayment, if the credit is issued at variable interest rate that varies all throughout the loan period or at variable interest rate which is established for the initial period and which, upon expiry of the initial period, varies throughout the remaining loan period, and if the initial period has expired

To change any other terms and conditions of the agreement, on the Internet Bank please submit your application for amending the agreement by selecting the required loan in “My credits“ and then go to "Other changes".

Required documents

Documents required from you and your spouse:

Loan application
Personal identity documents (passport of a Lithuanian national or personal identity card)
Consents to retrieving your data from external databases

Additional documents that may be required:

Statements on wages from the last 12 months (on the employer's letterhead signed by the head and CFO of the company and sealed)
Employment contracts
A tax return approved by the State Tax Inspectorate if you are a sole proprietor
Copyright contracts, if part of your income is generated under such contracts
Other certificates or documents which testify to your family income

Additional documentation that may be required if you apply for a loan to build or reconstruct a home:

Contract for works if the works are performed with a contractor
Construction permit and other design documentation
Documents testifying to the title to a parcel of land or leasehold interest
Cost estimate for construction or reconstruction work and timetable for completion of the work

In each individual case we may ask you for more documentation.

For more information about a loan, lending terms and fees please contact us at +370 5 268 2800

Borrowing is always associated with the risk of being unable to fulfil your assumed obligations properly and in due time, so before you decide to take out a loan, consider this risk carefully.

Use the home loan calculator to calculate a loan instalment that you could pay the bank every month without difficulty and consider the risk of decreased income. We also recommend considering the risk of increased instalments related to a rise in the interest rate and the risk of borrowing in a foreign currency.

According to the Responsible Lending Regulations of the Bank of Lithuania, we will provide you with instalment samples and other information related to concluding a loan agreement before signing the loan agreement. Please compare the different offers and make an informed decision.

Please note that you need to take out a mortgage against property to secure repayment of the loan. If the assumed financial liabilities are not fulfilled, there occurs a risk to lose title to the property.

The bank has the right to refuse giving out a loan.

Want to consult?
Our experts will help you

Book a meeting

You can get a video consultation online
During the consultation, we will discuss your needs and the kind of home you want to buy
If you haven't chosen a property yet, we'll help you better understand your needs
We will discuss your personal and family options (income and liabilities) and help you to find solutions to buy your own home
Documents required: personal documents (ID card or passport), information about the property you have chosen (price, area, neighbourhood, if available, valuation report of the property you want to buy).

Book a meeting

Important to know

Interest rates

General information for customers willing to obtain a secured loan (PDF)

General credit agreement

Secure borrowing facilities

Pledged property insurance

List of property valuers

Guidelines for the management of arrears arising from customers' non-compliance…

Safe Loan Insurance

In case of any illness, injury or job loss, you will be paid periodic benefits equal to the credit instalment or selected portion hereof paid by you
In case of any severe accident, your immediate family will be protected against all outstanding financial obligations or any portion thereof
It will help you and your family meet all financial obligations and retain rights to your home or other assets

Learn more

Which credit suits you?

Select your goal and we will help you to choose the right solution.

Home renovation and furnishing

Buying a car

Daily needs and larger purchases

Improving home energy efficiency

Home purchase or construction

Studying

No need to worry about the loan repayment

With insurance cover, you will provide your family with financial support in case of an accident
If you select fixed interest, you will hedge against interest rate risk
Under certain circumstances, you will have a possibility to defer payment of instalments

You would like get a loan for buying a dwelling, build, repair or refurbish it, but you are worried about your potential to repay the loan, if any financial problems occur We will offer three instruments enabling you to ensure that if your financial standing deteriorates or your family expenses or the loan interest unexpectedly increase, you are able to repay the loan when due and not to lose your home.

Insurance "Safe Loan"

Decision enabling you to fulfil your financial obligations

Are you or your close family members prepared for any unpleasant surprises, which nobody can foresee in advance? When issuing a loan, we always think about that, therefore, we offer you selecting insurance “Safe Loan” that includes life insurance, total and permanent disability insurance, temporary disability and involuntary unemployment insurance.

If you select insurance “Safe Loan” and any unexpected event occurs in your life, it will be easier for you and your family, as:

in case of your illness, injury or job loss, you will get periodic insurance benefit equal either to the instalment amount or to its any selected portion
in case of severe distress, your close ones will be protected against the outstanding financial obligations, in full or in part
it will be a support for you in meeting your financial obligations and retaining your home or any other property

More information about insurance “Safe Loan”, which serves as a support in retaining your financial stability in difficult times is available here.

Interest fixing

Interest fixation provides protection from changes in interest rates for a certain period of time

A fixed interest rate should be selected in such case if:

your income fluctuates or it is very difficult to predict it
loan instalment makes a large portion of your income and it is difficult to expect larger income in future

The fixed interest rate may be applied if the loan repayment period does not exceed 10 years. It is approved on the agreement signature date and does not change within the entire loan period. Thus, in case of any changes in the market, your loan interest rate remains unchanged within the entire loan period.

Based on your request, the fixed interest rate may be applied only for the specified portion of the loan, instead on the total loan. In such case, a variable interest will be applied on one portion of the loan, and the fixed interest rate – on the other portion of the loan.

Repayment deferral

Grace period is a chance to postpone payment of instalments in emergencies

If you are facing an emergency, you can file us a request to postpone payment of instalments without changing the final loan maturity date. During the grace period only interest is payable.

Emergency:	Grace period:
you lose job	up to 6 months
your income drops	up to 6 months
family loses breadwinner (spouse)	up to 6 months
you become ill or have an accident which has kept you off work for more than 2 months	up to 6 months or longer (subject to specific circumstances)
childbirth	up to 12 months if the child is raised by a single parent up to 6 months if the child is raised by both parents
aftermath of fire or other natural disasters	up to 6 months
you start studying	up to 3 months
divorce	up to 3 months
in case of compulsory initial military service	within the entire period of compulsory military service

For more information about a loan, lending terms and fees please contact us at +370 5 268 2800.