Purpose: purchase of housing
Terms and Conditions
Please send questions about payment and documents to the e-mail address firstname.lastname@example.org or by post to SA KredEx, Hobujaama 4, 10151 Tallinn (keyword “Kodutoetus” (Home Support) on the envelope).
1. The decision on allocating the support shall be valid for two years starting from the entry into force of the decision. Within this time, the support recipient must find and buy a dwelling that is suitable for their household.
2. Allocation of the support does not automatically entitle the support recipient to purchase the dwelling stated in the application. The purchase request must be approved by KredEx before entering into a notarised purchase and sale contract.
3. Those households who have received the support starting from 2020, must bear in mind that the purchase price of the desired dwelling may not exceed five times the amount of support.
4. The desired dwelling must be at least in a satisfactory condition, be ready for occupancy and have washing facilities and include a functioning heating, electricity, gas, water and sewerage system. It is not possible to use the support for purchasing an uninhabitable dwelling or a dwelling not corresponding to modern living conditions.
5. A dwelling cannot be bought from a household member or from a person who is a direct blood or collateral relative of the member (parents, grandparents, children, grandchildren, brother, sister, uncle, aunt and cousins).
6. The dwelling must be bought into the ownership of the support recipient. If the family includes two parents (or a parent and his/her partner), both of them must become the owners of the dwelling.
If one or both support recipients a) are subject to valid enforcement proceedings for the collection of debt, b) have unsettled debts (payment defaults) exceeding EUR 1500 according to Creditinfo, c) are subject to court judgments that have entered into force against him/her (or them) for initiating bankruptcy proceedings or declaring the person bankrupt, it is possible to buy the dwelling into the ownership of the support applicant’s child/children of up to 15 years of age. For that, the parent(s) of the child must obtain and present to the notary the consent of the court for the entry into transaction with respect to immovable in the name of a minor before the purchase and sale transaction. You can read more in § 187 of the Family Law Act here.
7. It is allowed to purchase one dwelling. It is also allowed to buy dwellings located side by side or on top of each other or living quarters next to the dwelling owned by the applicant or on top or below of it with the goal of assembling them together into one dwelling. The deadline for assembling the dwellings is two years starting from the entry into force of the decision on allocating the support.
8. A dwelling may be bought at a public auction.
9. If the applicant buys a dwelling that is more expensive than the amount of support, the applicant may use the support together with a housing loan and guarantee. You may read more about the guarantee here.
10. Notary’s fee and state fee are not eligible, i.e. these may not be paid from the support amount.
11. The dwelling to be bought must be taken into use and registered in the population register as the residence of all household members within three months as of the disbursement of the support. The dwelling to be bought must be used as the permanent residence of the household at least within two years as of purchasing.
1. Approval of the purchase request
After the support recipient has found the dwelling that he/she wants to buy, he/she must submit to KredEx the description of the dwelling (using the KredEx form) at least ten working days before the purchase.
Photos of the dwelling or a link to the sales ad in a real estate portal or (if available) expert assessment must be enclosed with it.
The description form for the desired dwelling is available here.
NB! A description of the dwelling need not to be submitted by an applicant, who wants to buy the same dwelling for which the support was requested. The applicant shall send a free format e-mail to KredEx, in which the applicant shall state 1) the address of the desired dwelling, 2) the purchase price of the desired dwelling and 3) information on into whose ownership the dwelling is to be bought. Photos of all rooms and the exterior of the dwelling shall be attached to the e-mail.
KredEx may reject the purchase request of a dwelling if the desired dwelling does not improve the living conditions of the household, i.e. is insufficient in terms of space, is in a poor condition, lacks washing facilities or there is no functioning heating, electricity, gas, water and sewerage system.
Otherwise, KredEx will approve the purchase request.
2. Conclusion of a notarised real right purchase and sale transaction
1. After the receipt of the approval by KredEx to the purchase request, the support recipient shall book an appointment at a notary with the parties to the purchase and sale transaction of the dwelling and shall inform the notary of the allocation of KredEx home support. A representative of KredEx shall not be present at the conclusion of the transaction.
2. If so requested by the parties to the purchase and sale transaction, KredEx will issue a letter of confirmation on guaranteeing the payment of the purchase price. For that, the support recipient shall send an inquiry to the e-mail address of KredEx at email@example.com at least three working days before the transaction. KredEx shall issue the letter of confirmation and the support recipient shall forward it to the other parties of the transaction.
The letter of confirmation is valid for ten calendar days as of its issue.
KredEx does not issue the personal data of the support recipient to third parties on its own initiative.
3. The support recipient shall enter into a notarised real right purchase and sale contract with the seller(s) of the dwelling.
3. Support disbursement
1. For the payment of the purchase price of the dwelling, the support recipient shall submit to KredEx immediately after conclusion of the transaction (at the latest within three working days)
1) the first transcript of the notarised real right purchase and sale contract and
2) support disbursement application (the form is available here).
If the household includes two parents (or one parent and their partner), both parents shall sign the disbursement application digitally or on paper.
2. KredEx will pay the purchase price of the dwelling either partly or in full to the current account of the seller of the dwelling, a person designated by the seller in the notarised purchase and sale contract or the support recipient within ten working days. KredEx shall inform the support recipient of the disbursement date.
3. If the support recipient has bought the dwelling before making the decision on the allocation of support, the recipient has a right to request from KredEx reimbursement of the purchase price.
For that, the recipient shall submit to KredEx
1) the description of the desired dwelling (using the KredEx form),
2) photos of all rooms and the exterior of the dwelling,
3) a notarised real right purchase and sale contract,
4) the support disbursement application,
5) a payment order evidencing the payment of the purchase price.
The disbursement documents must be presented to KredEx within 45 working days as of the entry into force of the decision on the approval of the application.
NB! The purchased dwelling must be at least in a satisfactory condition and have washing facilities and include a functioning heating, electricity, gas, water and sewerage system. KredEx will not reimburse the purchase price of an uninhabitable dwelling or a dwelling not corresponding to modern living conditions.
The support recipient shall present to KredEx a report on using the support. This must be signed digitally or on a paper by one parent.
The report must be submitted to KredEx within 30 calendar days after the household has taken the purchased dwelling into use and registered it as their residence in the population register (the deadline for registration is three months as of its acquisition).
NB! Those who have received the support starting from 2020 do not have to submit the report.
Obligations of the support recipient
The support recipient is obliged to:
1. take the purchased dwelling into use as the residence of all household members and make a respective entry in the population register within three months as of the purchase of the dwelling;
2. use the purchased dwelling as the permanent residence of the household at least within two years from the disbursement of the support (it is not allowed to rent out the dwelling during this time);
3. inform KredEx if enforcement proceedings have been initiated against the support recipient who is the owner of the dwelling for the collection of debt and/or if a notation has been entered for the dwelling in the land register on the prohibition of transfer;
4. inform KredEx if the dwelling is sold (incl. expropriated) before the end of the term of fulfilment of obligations established for the support recipient;
5. repay the support if the support recipient sells the dwelling purchased with the support before the end of the term of fulfilment of obligations established for the support recipient. The support recipient does not need to repay the support if the sales proceeds are used for finding a more suitable dwelling for the household.
If the support recipient wants to use the support for purchasing a dwelling that needs renovation, the recipient must purchase, renovate and take it into use as the permanent residence of the household within two years as of the entry into force of the decision on allocating the support.