Kredex provides guarantee for €25.4 million worth of housing loans in 2016 ({{commentsTotal}})

Kredex is an Estonian state-owned company.
Kredex is an Estonian state-owned company. Source: (Kredex)

State-run financing institution Kredex provided guarantee for €25.4 million worth of housing loans in 2016, an increase of €7.5 million over 2015 figures.

With the aid of loans for which Kredex provided surety, 2,605 households were able to buy or renovate a home in 2016. Since 2000, a total of 27,155 households have improved their living conditions, Kredex reported.

Banks issued a total of €959 million worth of housing loans in 2016, €183 million of which were loans for which Kredex provided surety.

A total of 1,153 young families, 1,324 young specialists, 15 veterans and 113 acquirers of energy-efficient housing used the opportunity to purchase housing. The Kredex housing loan guarantee portfolio has increaed more than €10 million.

"Last year, our housing loan guarantee portfolio increased more than €10 million, which is a significant increase," said Triin Reinsalu, head of the Housing and Energy Efficiency Division at Kredex. "Since the beginning of the year, everyone who wishes to purchase an energy-efficient home or make their current home more energy-efficient has the opportunity to use home loan guarantees."

Reinsalu added that since fall 2016, it has also been possible to apply for guarantee from all bigger credit institutions in Estonia as they also signed an agreement to issue guarantees with Swedbank AS.

Last year, in addition to providing guarantee, Kredex also offered various grants with the aim of increasing the energy efficiency of housing and improving people's living standards.

At the end of 2016, Kredex began issuing grants for the reconstruction of small residential housing, which is a helpful tool for owners of small homes who wish to make their homes more energy-efficient. In one year, Kredex received 139 applications from small home owners. The most common plans included roofwork and facade insulation.

Last year, the volume of applications for the reconstruction of apartment buildings increased, exceeding €35 million; a total of €102 million of resources are allocated for that category. Over 80 percent of these applications were aimed toward best possible solutions and the requested refund rate was 40 percent of the total cost of work.

Editor: Aili Vahtla

Source: BNS