To stimulate mortgage lending in Latvia’s regions, a new state support program, “Housing Purchase Loans in the Regions,” was launched on October 29 this year. Loans under the program will be available exclusively for purchasing housing outside Riga and the Riga Region, with a maximum loan amount of €74,000.
The program, developed by the Ministry of Economics and the Development Finance Institution ALTUM, aims to reduce geographical barriers to housing in regions where mortgage lending has so far been limited. The program will run until December 31, 2029, with a total funding volume of up to €105 million. Applications can be submitted via ALTUM’s customer portal mans.altum.lv starting from October 29.
Economics Minister Viktors Valainis stated:
"This new program addresses a market gap—situations where private financing is often unavailable or insufficient in the regions. Many residents, even with stable incomes, cannot obtain a mortgage for housing outside Riga and the Riga Region due to banks considering it too risky. This program provides a real opportunity for people who want to live and buy property in the regions, whether they are families, young specialists, or people relocating from the capital. It is an important part of the broader state goal—to develop regions, balance economic growth, and strengthen local communities throughout Latvia."
Reinis Bērziņš, ALTUM Board Chair, added:
"The program is not intended to replace bank lending but to expand its geographical reach in regions where commercial banks have so far been less active due to smaller market size and higher risks. ALTUM will take on higher risk in this program, setting precedents for future transactions and creating market practices that will encourage commercial banks to participate more actively in the future. We expect that in its first year, up to 2,000 residents will benefit from the program."
The “Housing Purchase Loans in the Regions” program offers loans of up to €74,000 for up to 30 years. The down payment can be up to 5% of the purchase price and can be covered using ALTUM’s “Support” subsidy, available to families with multiple children or children with disabilities. The purchased property serves as collateral, and financing can cover up to 100% of the property value.
Reinis Bērziņš emphasized:
"ALTUM will implement responsible lending—the program aims to help people buy housing in the regions while carefully assessing borrowers’ repayment capacity, as required by the Consumer Rights Protection Centre. ALTUM will also provide practical benefits—loans in the first year will be issued without a commission fee, and the interest rate for the first 12 months will be 0% + 6-month EURIBOR. These fee and interest rate benefits apply to applications submitted by October 30, 2026. Additionally, the cost of one property appraisal when applying for an ALTUM loan will be free throughout the program."
ALTUM received its Consumer Rights Protection Centre license on August 4 of this year.
More information about the program: ALTUM Housing Loans in the Regions
About ALTUM:
The Development Finance Institution ALTUM is a state-owned company in Latvia that provides support to specific target groups through state-backed financial instruments (loans, guarantees, equity investments in venture capital funds, etc.) within designated programs, complemented with non-financial support and other state-delegated functions.
In June 2017, ALTUM received a Baa1 long-term credit rating from Moody’s, confirming its stable financial position. On October 24, 2017, ALTUM bonds were listed on the Nasdaq Riga regulated market in the Baltic debt securities segment. ALTUM also received the Nasdaq Baltic Awards 2019 in the category “Exchange Event of the Year in Latvia.”
