How to Secure Real Estate Financing in Lithuania

Published on January 17, 2026 and written by Cyril Jarnias

Buying an apartment in Vilnius or a house near the Baltic Sea is a dream for a growing number of foreigners. But between rising prices, inflation, fluctuating interest rates, and strict banking rules, securing a mortgage in Lithuania requires real preparation. The market is open to non-residents for purchasing homes, but access to financing is clearly designed first and foremost for people who are economically integrated into the country.

Understanding the Mortgage Context in Lithuania

The Lithuanian mortgage system is based on a highly regulated framework. Banks and other lenders must comply with the Responsible Lending Rules set by the Bank of Lithuania. In practice, this translates into strict limits on the debt-to-income ratio, the amount financed relative to the property value (LTV), the maximum term, and the analysis of the borrower’s profile.

To get your bearings, it’s useful to look at some general figures on rates.

Interest Rate Trends and Levels

Mortgages in Lithuania are primarily offered with a variable rate indexed to the EURIBOR, to which banks add a margin. Fixed-rate options, often for 5 years, exist but come with an initially higher rate.

Here is a synthetic overview of some rate data mentioned in the sources:

Indicator	Indicative Value	Comment
Average mortgage rate (2024, 2025 – various data)	~4.3% – 6.2%	Range observed depending on period and product type
AAR / NDER mortgage loans Q4 2023	5.79%	Average agreed effective rate
AAR / NDER mortgage loans Q4 2024	4.55%	Decline after the 2023 peak
Latest mortgage rate (overall comparison)	4.35%	Over 5 years, average 3.62%
Historic low (mortgage)	1.59% (2017)	Period of very low rates
Historic high (mortgage)	6% (2008)	Before the financial crisis

In addition to these rate levels, a risk premium is applied for foreigners: banks generally charge an extra 0.5 to 1.5 percentage points compared to a local borrower with a comparable financial profile, especially for non-residents.

Who Can Get a Mortgage?

On paper, mortgages are open to Lithuanian citizens, foreign residents, and some foreigners working abroad who meet specific criteria. In practice, banks strongly segment profiles.

Borrower Profile	Access to Credit	Typical Conditions
Lithuanian resident with local income	Standard access, many products	Down payment 15–20%, LTV up to 85%, among the lowest rates
EU/EEA citizen with residence permit and income in Lithuania	Conditions close to a local	Down payment generally 20%, LTV up to 80–85%
Non-EU (e.g., American) without permanent residence or local income	Extremely difficult access	Very high requirements, often outright refusal

Lithuanian banks consider that a borrower without local economic ties – no long-term residence permit, no Lithuanian employment contract, no local credit history – represents a much higher risk. Hence, much stricter criteria for these profiles.

Eligibility Conditions: Age, Residence, Income

Obtaining a mortgage in Lithuania first means satisfying a common set of conditions, even before discussing rates or amounts.

Age and Residence Status

Most banks set a minimum age of 21 to take out a mortgage. There may be a maximum age at loan maturity (for example around 70), beyond which the term will automatically be shortened.

The residence status is the determining factor for foreigners:

– without a residence permit in Lithuania, commercial banks practically do not finance a standard mortgage for an individual, even if the law does not theoretically prohibit a foreigner from taking out a loan;

– a permanent residence permit is almost essential to convince a major bank (Swedbank, SEB, Luminor, Urbo bankas);

– a long-term temporary permit, accompanied by stable income in Lithuania, may sometimes be accepted, but these cases remain marginal.

For nationals of certain countries, the political context complicates things further: citizens of Russia and Belarus are subject to specific restrictions on access to residence and property since 2022, extended until 2025, which effectively limits their access to credit.

Stable and Continuous Income

Banks primarily examine the repayment capacity over the long term. Therefore, they require:

Income from another country may be considered in some very specific products (for example, certain Urbo bankas loans for people working outside the eurozone), but the dominant rule remains a clear preference for income of Lithuanian origin, traced to a local account.

Parental leave benefits or allowances paid in Lithuania can, in some cases, be included in the income calculation.

Debt-to-Income Ratio: Maximum 40 to 50%

The responsible lending framework imposes a cap on the portion of your income that can be absorbed by debt service. Depending on the banks and regulations:

Concretely, for a household earning 2,000 euros net per month, the maximum monthly payment for all credits combined will be around 800 euros, or even less if the bank prefers to remain cautious.

Local Credit and Banking History

Another key element: credit scoring. Lithuania has credit reference agencies that centralize residents’ history of loans, delays, judgments, and credit inquiries. Banks consult these reports to establish a score.

For a foreigner, this is a sensitive point:

– foreign credit history (e.g., American FICO) may be considered as supplementary information, but is not the main criterion;

– the absence of a Lithuanian history is penalizing: it is recommended to open a local bank account, have your income paid into it, and even use small credit products for 1 to 2 years to build a solid file.

A history of impeccable payments, an absence of legal disputes, and limited indebtedness weigh heavily in the decision.

Down Payment, LTV, and Financeable Amounts

Lithuania applies clear rules on the maximum portion of the project that the bank can finance, through the concept of Loan-to-Value (LTV) and the minimum down payment.

Minimum Down Payment and Standard LTV

For a first-time purchase of a primary residence, the norm is as follows:

– minimum down payment: at least 15% of the property value or purchase price (whichever is lower);

– maximum LTV for a home: up to 85% of the price or appraisal value, if it is a primary residence.

This means that an apartment valued at 150,000 euros can, in theory, be financed up to 127,500 euros, with the remainder coming from your own funds.

For other types of properties, the limits are more restrictive:

Property Type	Indicative Max LTV	Theoretical Min Down Payment
Primary Residence	85%	15%
Secondary Residence, Vacation Home	~60%	40%
Non-Residential Property (Commercial Premises, Office)	70%	30%

When you take out a second mortgage, regulation tightens the safeguards further: the LTV may be limited to 70%, unless your existing mortgage loans already have a ratio below 50%.

Specifics for Foreigners and Non-Residents

Non-residents and third-country citizens face much stricter requirements. The general figures observed are as follows:

In practice, many banks simply refuse to finance a foreign individual without permanent residence or local salary: thus, many non-resident buyers are forced to buy with cash.

Minimum and Maximum Amounts

Mortgages commonly start at a minimum amount of around 20,000 euros. The ceiling depends on the project, the property value, and your income. There is no uniform fixed limit, but the envelope is bounded by:

– the maximum LTV;

– compliance with the debt-to-income ratio (40–50% of your net income);

– the age of the borrower(s) at the end of the loan.

Types of Rates and Loan Terms

Once eligibility and down payment are clarified, the central question of the rate and repayment structure arises.

Variable Rate, Fixed Rate, and Combinations

In Lithuania, the most frequent structure is:

– variable rate: reference EURIBOR (often 3 or 6 months) + bank margin, for example 2%;

– 5-year fixed rate: the rate remains constant for an initial period (often 5 years), then the loan switches to a variable rate.

Banks sometimes offer several variants, for example:

– a 100% variable rate from the start;

– a 5-year fixed rate followed by a variable rate;

– different combinations of margins and terms.

Parameter	Example 1 – Variable Rate	Example 2 – 5-Year Fixed Rate
Loan Amount	85,000 €	85,000 €
Term	25 years	25 years
Initial Rate	4.65% variable	4.12% fixed for 5 years, then 4.90% variable
Initial Monthly Payment	479.72 €	455.18 € (then 486.38 € after 5 years)
Approximate Total Cost	143,916 €	143,575 €
APRC	4.80%	4.72%

Another example, for a loan of 100,000 euros over 25 years at 4.3% variable, gives a monthly payment of approximately 548 euros and a total cost close to 167,000 euros, APRC around 4.62% (including certain fees).

Repayment Term

The maximum term for a mortgage is 30 years. Shorter terms (20 or 25 years) remain common, especially for older borrowers or renovation projects.

The most frequent repayment methods are:

– constant annuity: equal monthly payments over the entire term, with the interest portion decreasing over time while the principal portion increases;

– linear repayment: principal repaid in identical amounts each month, creating decreasing monthly payments (as interest is calculated on a decreasing outstanding principal).

Some banks allow for temporarily deferring principal repayment (through grace periods) to cope with a life event (job loss, illness, childbirth, etc.), typically for a few months to a year.

Early repayment is generally allowed: you can repay all or part of the loan sooner. However, penalties may apply, especially if you repay more than 10–20% of the principal per year on a fixed-rate loan.

Procedure for Obtaining a Mortgage

The typical process for financing a purchase in Lithuania follows a sequence of fairly standardized steps.

Borrowing Capacity Estimate and Pre-Simulation

The process often starts online, via loan calculators available on the websites of major banks (SEB, Luminor, Urbo, Swedbank). These tools give a preliminary estimate of:

– the monthly payment corresponding to a given amount and term;

– the maximum financeable amount based on your income;

– the impact of a variable or fixed rate.

Next, the bank usually proposes an initial contact with an advisor – in a branch or remotely – to clarify your personal situation (income, debts, real estate project).

File Preparation and Required Documents

The next phase involves gathering the many requested supporting documents. Overall, expect to provide:

Documents in a foreign language must be provided with a certified translation into Lithuanian, which sometimes adds several hundred euros in costs.

Property Valuation: Mandatory Appraisal

The bank does not rely solely on the price negotiated with the seller. It requires an independent appraisal report, conducted by a certified expert and compliant with international and European standards. The cost typically ranges from 200 to 500 euros, borne by the buyer, and the timeframe is often 1 to 2 weeks.

This appraisal serves as the basis for calculating the LTV: the bank uses the lower value between:

– the price stated in the preliminary agreement or deed;

– the market value estimated by the expert.

Bank Decision and Binding Offer

Once the file is complete, the bank proceeds with the creditworthiness analysis:

– verification of compliance with responsible lending rules (LTV, DSTI, term);

– risk profile assessment (income, stability, age, credit history);

– property analysis (location, liquidity, type).

Signing, Notary, and Registration

After accepting the offer:

1. you sign the loan agreement (often possible remotely) and open an account with the lending bank if not already done;
2. you sign, with the seller, the notarized deed of sale. The presence of a notary is mandatory: they verify ownership, the absence of undeclared encumbrances, and the legal validity of the transaction;
3. the notary or you yourself file the documents with the Center of Registers to register the transfer of ownership and the inscription of the mortgage;
4. the bank disburses the funds to the seller, generally right after the official confirmation of the security registration.

The complete process, from the purchase offer to handing over the keys, generally takes 4 to 6 weeks for financed purchases, slightly less for a cash purchase.

A key rule emerges from recommendations: never pay the price to the seller before final confirmation of the loan by the bank. At most, a deposit of 10–15% in a preliminary agreement, protected by clear clauses and potentially held in escrow by the notary.

Additional Costs: Well Beyond the Down Payment

A common pitfall for foreign buyers is to underestimate peripheral costs. In Lithuania, they add up quickly.

Bank and Processing Fees

Among the fees related to the loan itself, you will notably find:

– processing / administration fees: often a fixed amount around 400–425 euros, or a percentage (0.4–0.5% of the loan) with a minimum of about 100–200 euros;

– funds transfer fees to the seller: for example 2 euros in some fee schedules;

– contract modification fees (restructuring, rate change, term extension) in case of later renegotiation;

– possible penalties for early repayment, especially on fixed-rate loans.

These amounts are partly included in the APRC calculation, but not always all of them (for example, the bank may exclude home insurance and notary costs from this calculation).

Notary, Registration, and Appraisal Fees

Legal and administrative costs break down into several items:

To this can be added attorney fees for an in-depth verification of the title and risks (from 300 to 3,000 euros depending on complexity and scope of the assignment).

Home Insurance and, Possibly, Credit Insurance

Insurance of the mortgaged property is mandatory for the entire loan term, plus two additional months, at the property’s replacement cost. It generally covers major risks (fire, water damage, natural disasters, theft). The annual cost is often around 0.1 to 0.3% of the insured value, meaning a few dozen euros per year for an average apartment (an example mentions about 70 euros/year).

Total Acquisition Cost: An Example

For an apartment at 150,000 euros, a typical breakdown might look like this:

– 20% down payment: 30,000 €;

– bank fees, notary, registration, appraisal, translations, attorney: often 2–4% of the price, meaning 3,000 to 6,000 €.

The buyer must therefore have at least 33,000 to 36,000 euros in cash, often more. For a non-resident with a required down payment of 40%, the initial outlay rises to 60,000 euros + 3,000–6,000 euros in fees, for a total of 63,000 to 66,000 euros before even the first monthly payment.

Specific Situation for Foreigners, Notably Americans

While, legally, foreigners can buy residential properties in Lithuania (excluding agricultural land and forests for non-EU citizens), access to credit remains the main obstacle.

Often Inaccessible Conditions Without Permanent Residence

The major institutions (Swedbank, SEB, Luminor, Urbo bankas) have a fairly clear stance:

– permanent residence permit or long-term permit is essential;

– stable income in Lithuania is strongly preferred;

– local economic integration is required (employment, business, declared activities in the country).

For an American citizen, for example, banks particularly insist on:

– having a Lithuanian employment contract or documented local commercial activity (business registration, financial statements, tax returns);

– a history of local banking relations (active checking account, investments, small loans).

Successful applications often involve people who have moved to Lithuania permanently or have established significant economic activity there. A simple tourist-investor status, even with comfortable income abroad, is rarely sufficient.

Tougher Down Payment and Financial Conditions

When financing is considered for a non-resident or a non-EU foreigner, the bank applies:

– a down payment of 30 to 50%;

– an LTV capped at 70–80% instead of 85% for locals;

– an interest rate increased by 0.5 to 1.5 points compared to residents.

Alternatives to Traditional Banks

Facing the reluctance of major banks, some foreigners turn to:

– specialized brokers who can negotiate with regional banks or arrange portfolio financing;

– private credit institutions, credit unions, or real estate investment companies, whose products are often more expensive, shorter-term, and riskier;

– full financing with own funds, ultimately the simplest solution for a wealthy non-resident.

In any case, rigorous due diligence remains essential, especially with online lenders or little-known players.

State Aid Programs: Young Families and First-Time Buyers

For residents, Lithuania has implemented several public programs aimed at encouraging homeownership, particularly in regions and for families.

Subsidies for Young Families in Regions

A law adopted in 2018 provides a financial incentive for young families buying their first home in certain regional areas. The principles are as follows:

– considered a “young family”: spouses or registered partners under 36, or a single parent under 36 with child(ren);

– no member may already own a home;

– the home must be located in a municipality where the standard square meter value is at least 65% lower than the highest value in the country;

– the home must be completed at the time of purchase.

The state covers part of the housing loan in the form of a subsidy, the rate of which depends on the number of children:

Family Situation	Subsidy Rate on the Loan
Young family without children	15%
With 1 child	20%
With 2 children	25%
With 3 children or more	30%

Additional rules allow for an additional subsidy if the family has a third child after already benefiting from the scheme, as long as one parent is still under 40.

State-Partially Compensated Housing Loan

A second program covers a slightly broader population, across the entire territory:

This support can help with building the down payment or reducing part of the monthly payments. The procedures go through the municipality and the SPIS information system, which issues a certificate to then present to the bank.

Impact on Obtaining Credit

For an eligible young couple, these programs can make a real difference:

– they improve the effective LTV (since the subsidy equates to equity);

– they reduce the perceived risk by the bank and thus facilitate application approval;

– they ease the pressure on the debt-to-income ratio.

However, these aids are only for residents integrated into the Lithuanian social system. Non-residents and most non-EU foreigners do not have access to them, which further widens the gap in conditions between locals and international buyers.

Practical Advice for Building a Strong Application

Beyond the official rules, a few pointers emerge from observed practices.

For a Resident or Future Resident

To maximize your chances:

– stabilize your professional situation in Lithuania and avoid changing jobs just before applying;

– limit your consumer credit, debt consolidations, and credit cards to maintain a low DSTI;

– build a solid local banking history: regular income, no overdrafts, no rejected direct debits;

– plan for a down payment above the minimum (20–25% instead of 15%), which strongly strengthens your risk profile and may help you negotiate the rate;

– don’t hesitate to consult several banks and possibly a broker to get competing offers.

For a Non-EU Foreigner

For an American or other non-EU individual, the realistic strategy often involves a two-step project:

If you do not plan to settle in Lithuania, you must consider: an alternative.

– either an entirely cash purchase, accepting a larger initial outlay but a simplified banking process;

– or private financing solutions that are more costly and risky, after a very thorough legal analysis.

Read the Terms Carefully and Anticipate Risks

Finally, whatever your profile:

In Summary

Obtaining real estate financing in Lithuania is quite accessible for a resident with stable income, good credit history, and a reasonable down payment of 15 to 20%. The rules, heavily regulated by the Bank of Lithuania, favor caution: capped debt-to-income ratio, limited LTV, mandatory appraisal, property insurance for the entire loan term.

For foreigners – especially non-EU – the picture is more nuanced. Without permanent residence or local economic integration, traditional banks rarely lend, and when they do, it comes at the cost of a high down payment and more expensive rates. In this context, many non-residents simply choose to buy with cash or focus first on settling in the country before taking the plunge.

Situation of non-EU Foreigners for Real Estate in France

The key, in all cases, remains preparation: understanding the rules in detail, anticipating all costs (which can represent 25 to 35% of the property price including down payment and fees), and taking the time to build an application that ticks all the boxes of responsible lending Lithuanian-style.