KredEx has provided guarantees for housing loans since the year 2000. During this period, 13,242 young families, 6,865 young specialists and 69 tenants residing in restituted houses (i.e. over 20,000 households in total) have improved their living conditions.
In 2009. banks issued 799 housing loans with KredEx guarantee in the total amount of 624 million kroons. Among all the housing loans issued in Estonia, the volume of the loans issued with the KredEx guarantee was 8.94% as annual average, amounting even to 13.8% in October. 2008. In 2008, the weight in question was 5.93%.
According to Ms Mirja Adler, Head of the KredEx housing product division, the borrowers who lack necessary self-financing, have to choose between two options: either e.g. offer their parents’ flat as a supplementary security (if available) or use KredEx loan guarantee.
“In the present difficult economic situation these clients, who have used KredEx guarantee have a definite advantage. If, in case of solvency problems, the securities (the prices of which are considerably lower now compared to the time of their acquisition) need to be sold, the parents would not lose their flat, as the KredEx guarantee can be realized” added Ms Mirja Adler.
As of the end of 2009, volume of the KredEx housing loan guarantee portfolio amounted to 611 million kroons. During last year 380 young families used KredEx guarantee in the amount of 58.3 million kroons and 419 young specialists in the amount of 59.5 million kroons. In 2009 the average loan sum with KredEx guarantee was 781,000 kroons.
Last year bigger part (83%) of KredEx housing loan guarantees was used for the purchase of apartments, 13% for the purchase of residential buildings, the remaining part was used for renovation or construction.
