On Friday 10 April, Nordea Bank and the Latvian Development Finance Institution (ALTUM) concluded an agreement on participation in the state support program for home ownership for families with children, which is being implemented by ALTUM.
Within this program ALTUM will provide guarantees for loans granted by commercial banks and, starting from 10 April, families with children will have an opportunity to receive mortgage loans from Nordea Bank with more accessible conditions and a smaller down-payment.
"Accumulation of savings is time-consuming and purposeful work, and our society is in the early phase in terms of future personal financial well-being. Families with children in particular have very small savings and insufficient funds for a down-payment is the greatest obstacle to home ownership. Hence, this program is an important support instrument for young families that makes loans more accessible. I am pleased that Nordea will make its contribution to achieving the objectives of the state support program,” says Jānis Buks, Head of Nordea Latvia.
Rolands Paņko, Chairman of the Board of ALTUM: "We are happy about Nordea's participation in implementing the state support program for mortgage loan guarantees. Involvement of a new partner will ensure that the program is even more available for customers throughout Latvia. The procedure for issuing guarantees by ALTUM is made as easy as possible for customers and the commercial bank since the customer can arrange everything required for receiving a guarantee at the bank granting a loan for home ownership. The guarantee application to ALTUM is sent via a commercial bank, and ALTUM reviews it within no more than five working days. As early as next week ALTUM will join the common development finance institution, which will take over the entire state support program of ALTUM including implementation of the guarantee program for home ownership for families with children, without any changes to the cooperation with customers and partners in any way."
The main purpose of the state support program is to reduce the required down-payment for purchasing or building a family home by means of a state guarantee. Families with one child can receive a state guarantee on 10% of the mortgage sum (up to EUR 10 000). Families with two children can receive a state guarantee on 15% of the mortgage (up to EUR 15 000) and a state guarantee on 20% (up to EUR 20 000) is available for families with three or more children.
The main principles for granting mortgage loans and criteria of the state support program are available on the Bank's website www.nordea.lv/majoklakredits