Buying Properties in Estonia: Refinancing & Equity‑Release Guide
- John Philips
- Aug 1
- 2 min read
Updated: Nov 14
1 | Why Refinance or Cash‑Out?
Rate drop – lock lower interest after ECB cuts.
Equity unlock – fund a second buy, renovation, or business.
Term reset – switch from 20‑year to 10‑year to save on total interest.
Switch currency – move from variable Euribor to fixed‑rate stability.
2 | Eligibility Snapshot (2025)
Bank | Max LTV on Refi | Cash‑Out Cap | Min Equity Holding |
Swedbank | 75 % | 20 % of market value | 12 months |
SEB | 75 % | 25 % | 6 months |
LHV | 80 % (primary home) | 30 % (investor) | 6 months |
Coop Pank | 70 % | 25 % | 24 months |
All require fresh valuation report (valid 6 months, €200–€350).
3 | Refinance Cost Breakdown
Item | % of Loan / € |
Notary deed amendment | 0.1 %–0.3 % (min €60) |
State fee (Land Register) | €20–€60 |
Bank arrangement fee | 0.5 % (often capped €500) |
Valuation report | €200–€350 |
Early‑repayment penalty* | 0–3 months interest |
*Fixed‑rate loans may charge up to 1 % of balance; variable Euribor loans often penalty‑free.
4 | Cash‑Out Use‑Cases & Tax Notes
Down‑payment on rental flat—interest is tax‑deductible against rental income.
Renovation qualifies for KredEx eco‑loan top‑up.
Business capital—declare shareholder loan; interest paid by OÜ can be deductible.
No capital‑gains trigger—loan is not taxable income.
5 | Timing Strategy
Market Signal | Action |
Euribor expected to fall > 0.5 pp | Wait or choose variable‑rate swap |
ECB hints at tightening | Fix rate now (5–10 yrs) |
Property value up ≥ 15 % vs purchase | Cash‑out to 75 % LTV |
Rate‑spread promo campaigns (spring) | Refi to banks offering 0 € arrangement |
6 | Step‑by‑Step Refi Process
Check LTV & DTI – online calculators.
Order valuation – bank‑approved valuer.
Collect docs – salary slips or rental contracts.
Bank application – response within 5 days.
Sign new loan deed at notary; new mortgage entry recorded.
Old loan cleared by bank escrow; cash‑out portion wired to your IBAN.
Total timeline: 3–4 weeks.
7 | Refinance vs HELOC (Home‑Equity Line)
Feature | Refinance | HELOC |
Interest rate | Lower (mortgage rates) | +1.0 – 1.5 pp variable |
Draw flexibility | Lump sum | Revolving line up to 5 yrs |
Setup cost | Higher (notary + fee) | Lower |
Best for | Large projects | Staged renovations, liquidity buffer |
Estonian banks brand HELOC as “kodupant” (home pledge) or “kapitalilaen”.
8 | Bryan Estates Refi Concierge
Rate‑shopping across 5 lenders—avg savings 0.35 pp.
One‑stop docs: valuation, notary slot, and bank KYC pack.
Equity‑plan modelling—visual pay‑down vs cash‑out scenarios.
Penalty negotiation—successfully waived early‑repay fee in 70 % of cases.
Frequently Asked Questions
Can foreigners refinance remotely?
Yes—via e‑Notary video or power of attorney.
Does cash‑out affect land tax?
No; land tax is independent of mortgage balance.
Can I refinance an OÜ‑owned property?
Yes, but LTV usually capped at 65 % and requires two‑year financials.
Ready to Unlock Your Equity?
Email info@bryanestates.ee or call +372 123 4567 for a free refinance feasibility report and rate quote.
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