The Ministry of Economics (MoE) has developed a new mortgage lending programme that will provide individuals with access to mortgage loans for home purchases in the regions. For the programme’s implementation until 2029, public funding of EUR 25.8 million has currently been allocated, and ALTUM may additionally mobilize up to EUR 80.3 million in financial resources.
The programme addresses market gaps — specifically, insufficient availability of mortgage loans in regional areas — and will promote home ownership in Latvian regions where mortgage lending has so far been less active.
The project developed by the MoE, “Regulations on Loans for Home Purchases in the Regions”, was approved by the government on Tuesday, 14 October.
“More than 3,000 families in Latvian regions will gain unprecedented access to mortgage loans for home purchases through the financial institution ALTUM. Mortgage lending is one of the most important prerequisites for regional development — if people have the opportunity to plan their future and buy a home, new businesses will open more often, and new jobs will be created,” said Minister of Economics Viktors Valainis.
The mortgage lending programme will be implemented by ALTUM (Development Finance Institution), which will also ensure that the mortgage interest rate is not lower than the average market mortgage rate.
Mortgage loans will only be available for home purchases outside Riga city and the surrounding Pierīga region. The loan amount will be up to 100 minimum monthly wages, i.e., EUR 74,000, with a repayment term of up to 30 years. Applications for mortgage loans under the new programme are expected to open at the end of October.
On 25 July this year, following intensive and targeted work by the MoE, the European Commission approved the expansion of ALTUM’s scope to issue mortgage loans to individuals for home purchases in the regions.