Assess your borrowing power (Latvijas Banka rules)
Latvijas Banka's credit risk management regulation sets clear limits for home lending. All your loan payments together may not exceed 40% of the household's monthly net income (DSTI), total debt may not exceed six years' net income (DTI), and the longest term is 30 years. If the home has energy class A+, A, B or C, the limits are looser: 45% of income and eight years' income.
The Consumer Rights Protection Law caps a mortgage at 90% of the market value of the property, or 95% of the purchase price with a state (ALTUM) guarantee. If you buy a home to let it out, the bank may lend at most 70% of its value.
Banks also look at how stable your income is, your existing obligations and your payment history. Before applying, pay down consumer loans and instalment purchases and close credit-card limits you do not need: even an unused limit can reduce what the bank will lend you.
How big a loan can you afford?
- New loan payment up to
- 800 € / month
- Loan up to about
- 144,000 €
Limited by the debt cap (6× annual income)
With a 10% down payment, a home up to 160,000 €
With a 20% down payment, a home up to 180,000 €
Based on the Latvijas Banka rules: all loan payments together up to 40% of net income and total debt up to 6× annual net income (45% and 8× for an A+–C home). The debt cap also counts what you still owe on existing loans. The exact amount comes from the bank, which also looks at how stable your income is and at your credit history.
Build the down payment and budget for transaction costs
The legal minimum is 10% of the price, because the loan may not exceed 90% of the market value. In practice banks often ask for 15–20% of your own money, especially for older buildings. With an ALTUM guarantee the down payment can be as low as 5%. On a €100,000 flat that is €10,000 at 10%, €20,000 at 20% and €5,000 with the guarantee.
Set aside money for the transaction costs as well. To register ownership in the Land Register, a private buyer pays a state duty of 1.5% of the price or the cadastral value (whichever is higher), capped at €50,000; families with children buying with an ALTUM guarantee pay 0.5% on a value up to €100,000. Registering the mortgage costs a state duty of 0.1% of the loan, and each new entry carries a €15 court office fee. Add the notary fee for certifying signatures and a certified valuer's report (from about €150).
If selling your current home will fund the down payment, a real estate agent can help you time both deals. Work out the whole sum you need for the purchase in the first-time buyer's guide.
Down payment on a 100,000 € flat
20% · Banks often ask
20,000 €
15% · Some banks
15,000 €
10% · Legal minimum
10,000 €
5% · With an ALTUM guarantee
5,000 €
Set aside the transaction costs too
- State duty for the ownership entry (1.5%)
- 1,500 €
- Mortgage entry (0.1% of a 90,000 € loan)
- 90 €
- Court office fees (2 entries)
- 30 €
- Valuer's report
- from 150 €
ALTUM support: guarantees, Balsts and the regional loan
The state development finance institution ALTUM helps people whose income can carry a loan but who lack the down payment. ALTUM gives the bank a guarantee, and the bank can then lend up to 95% of the purchase price. You apply through the bank (Bigbank, Citadele, Luminor, SEB, Swedbank), and ALTUM decides within 5 working days.
The programmes change, so check the current terms on altum.lv before you apply.
Guarantee for families with children
Maximum guarantee: share of the loan and amount
| Children | Rīga and surroundings | Rest of Latvia |
|---|---|---|
| 1 | up to 10%, max 10,000 € | up to 30%, max 30,000 € |
| 2 | up to 15%, max 15,000 € | up to 40%, max 40,000 € |
| 3 | up to 20%, max 20,000 € | up to 50%, max 50,000 € |
| 4+ | up to 30%, max 30,000 € | up to 50%, max 50,000 € |
Rīga and surroundings: Rīga, Jūrmala, Mārupe, Olaine, Ķekava, Salaspils, Ropaži, Ādaži. For a class A or nearly zero-energy home the guarantee is 5% (up to €5,000) higher.
Guarantee for families with children: for a parent supporting a child up to age 23 (a pregnancy counts too). The amount depends on the number of children and the location: in Rīga, Jūrmala, Mārupe, Olaine, Ķekava, Salaspils, Ropaži and Ādaži at most €10,000–30,000, elsewhere in Latvia €30,000–50,000. Transactions up to €300,000; one-off fee 2.5% of the guarantee.
Guarantee for young specialists: up to and including age 35, with secondary vocational or higher education. Up to 20% of the loan, at most €50,000, for 10 years; fee 2.4% a year of the remaining guarantee.
Balsts: a non-repayable grant for families with three or more children: €8,000 (three children) or €10,000 (four or more), plus €2,000 for a nearly zero-energy home. It can go towards the down payment if the family owns no other home and its income is within the limit.
Regional home loan: a direct ALTUM loan for a home outside Rīga and its surroundings: up to €74,000, down payment from 5%, rate 6-month EURIBOR + 2.5%, term up to 30 years.
Compare bank offers
Get offers from at least two or three banks and compare not just the rate but every cost: the margin, the contract fee, account and insurance requirements and the annual percentage rate (APR). According to Latvijas Banka, almost 70% of mortgages issued in 2026 had a margin of 1.2–1.6%, and only about 5% had one above 2%. Even 0.3 percentage points add up to thousands of euros over 30 years.
An existing loan is worth reviewing too. Since 2024 the old bank may not charge compensation when you refinance a variable-rate loan elsewhere, the new bank may charge at most 1% of the loan for the contract, and the Land Register duty is due only on any increase in the loan. From January 2025 to August 2026 margins were cut on more than 14,500 mortgages: by 0.45 percentage points on average with the same bank and by 0.75 when refinancing elsewhere.
- Bank A payment
- 495 €
- Bank B payment
- 513 €
- Difference a month
- 18 €
- Difference over 30 years
- 6,398 €
Calculated on an annuity schedule with EURIBOR unchanged. When comparing the banks’ offers, look at the contract fee and the APR too.
What affects your interest rate
A Latvian mortgage rate is almost always variable: 6-month EURIBOR plus the bank's margin. 6-month EURIBOR was the base rate for 88.6% of the loans issued in 2025, and fixed-rate offers are few. You can't influence EURIBOR, but the margin is negotiable, and that is exactly what to compare across banks.
A larger down payment (a lower loan-to-value ratio, LTV) usually earns a lower margin.
Stable, declared income and a clean credit history strengthen your position.
An energy-efficient home (class A+–C) lets you borrow more: payments up to 45% of income and debt up to 8× annual income.
A salary account and other products with the same bank can help you get a lower margin.
What the bank usually asks for
Have these ready before you apply.
- Proof of identity
- A bank statement or certificate showing your income
- Details of existing loans and leases
- Details of the home: Land Register folio, the listing or the earnest-money agreement
- A certified valuer's report (after the bank's preliminary offer)