General consumer information on mortgage loans

Loan provider

ABLV Bank, AS in liquidation unified registration No. 50003149401.
Legal address: Building 1, 7 Skanstes Street, Riga, LV-1013, Latvia.
Actual place of rendering the service: 7/1 Skanstes Street, Riga, LV-1013, Latvia.

Mortgage loan

A loan for purchasing real estate and for other purposes, including repair and improvement of housing, debt refinancing, against pledge of real estate located in Latvia.

The property to be pledged must be evaluated. The loan provider shall order the evaluation and cover its costs for the client (only in certain cases the client is requested to cover such costs). The client also may order property evaluation and pay for it provided that the evaluation is conducted by a property evaluator approved by the loan provider and certified in accordance with the procedures of normative acts. Information on property evaluators approved by the credit provider is available by calling on +371 6700 2000 or emailing on

In accordance with the requirements of the loan provider, the property to be pledged (except land plots) must be insured for the entire term of loan repayment. The client must cover the costs of insuring the property. All terms and conditions of the loan provider on insuring the property are available here. Loan provider offers to conduct property insurance for the client withholding the insurance premium from client’s current account automatically.

Mortgage loans are issued in euro currency. If a loan is issued in a currency that is not the currency, in which the client is receiving income or holding assets to be used for repayment of the loan, and/or the loan is expressed in a currency that is not the currency of the member state of the European Economic Zone the client is resident of, then the currency exchange rate fluctuations may affect the amount of monthly payments related to repayment of the loan.

Mortgage loans are issued with a maturity term up to 30 years, depending on the type of property to be used as pledge.

Interest rate and procedure of determining it

The loan provider applies floating interest rate to the mortgage loans. The interest rate is composed of two main values: loan provider’s lending margin that is fixed and determined based on client’s income and credit history, and the floating part – money market index. The loan provider is using EURIBOR (Euro Interbank Offered Rate) money market index that is applied for six months, whereas if EURIBOR money market index equals 0% or is negative, then the floating part of the interest rate is set no lower than 0%.

The effective EURIBOR rate is available on the website of the Bank of Latvia

Since the floating rate is applied to mortgage loans, changes in the floating part of the rate may affect the amount of client’s monthly payments related to the repayment of the loan.

Loan repayment

Mortgage loan is repaid by monthly instalments in accordance with the loan repayment plan chosen by the client: regular or declining.

When the regular repayment plan is chosen, monthly instalments consist of interest payment and principal payment sum that is equalized to be constant throughout the whole loan repayment period.

Upon declining repayment plan, monthly instalments consist of interest payment and principal payment sum, where principal payment sum will be constant throughout the whole loan repayment period.

Calculator for determining preliminary amount of monthly instalment is available here.

At any time the client can submit an application in writing to the loan provider about premature repayment of the loan, and return the loan in full or partly before the deadlines set in the loan agreement. 

Example of total loan sum, total loan costs and annual interest rate (AIR)

For example, upon loan issued in the amount of EUR 50,000 with maturity term of 25 years with an interest rate of 2.50% (the bank’s lending margin is 2.50% and the floating part of the interest rate is 0%), having paid the fee for preparing documents after granting the loan of 1.75% from the loan sum, having paid the fee of EUR 30 for opening a current account, fee of EUR 18.50 to the Land Register for corroborating the mortgage on the real estate, state fee of 0.1% of the loan sum for corroborating the mortgage, and insurance premium of EUR 60 annually for insuring the pledged property for the entire maturity term of the loan, the AIR shall constitute 2.95% and the total sum to be paid by the client shall be EUR 70,030.12.

Under the loan agreement the following additional expenses may emerge: costs of evaluation of the property, fee of 2.5% of the guarantee amount to be paid to development financial institution Altum for issuing a guarantee if government support is used for housing acquisition or building for families with children.

The calculations used in the example are provided assuming that the amount of interest rate and other loan costs remain unchanged throughout the entire term of the loan agreement and the repayment of the loan is done in accordance with regular repayment schedule.

In each individual case the total sum of the loan, total costs of the loan and AIR may differ.

The example is prepared on 30 December 2016, and the data used in it are indicative due to being subject to amendments in normative documents of the loan provider, including Rates and Charges, and amendments in external regulatory acts.

Failure to fulfil loan obligations

Failure to fulfil the obligations provided in the loan agreement may cause financial and legal consequences.

Assess responsibly the need for the loan and receiving it, and assess your ability to repay it!