The KredEx guarantee: buying a home with a smaller deposit
The KredEx housing loan guarantee — today administered by [EIS, the Enterprise and Innovation Foundation (formerly KredEx)](https://eis.ee/en/) — is an Estonian state-backed surety: the state guarantees part of your mortgage, so the bank can accept a smaller down payment than the standard 15%. It lowers the cash barrier to buying a home — it does not lower your interest rate.
How the guarantee works
Normally the 85% LTV cap means you bring at least 15% of the property value in cash. With the state guarantee, the guaranteed portion substitutes for part of that deposit, so eligible buyers can proceed with less cash while the bank stays within its risk rules.
You apply through the bank, not separately: when you request a mortgage, tell the bank you want to use the guarantee, and the bank handles the assessment against the current criteria. A guarantee fee applies — factor it into the total cost comparison alongside the APRC.
Who is typically eligible
The scheme has historically targeted groups such as first-home buyers, young families with children, young professionals, tenants of restituted housing, and buyers renovating energy-inefficient homes. Exact categories, income conditions and guarantee ceilings change over time — check the current criteria with your bank or EIS, the administering state fund, before planning around it.
The guarantee applies to a home you will live in, not investment property. Banks still run their full affordability assessment: the guarantee replaces deposit cash, not income requirements.
What the guarantee does not do
It does not reduce your interest rate or margin — pricing is still set by the bank, and comparing margins matters exactly as much with a guarantee as without.
It does not remove the DSTI affordability check, and it is not a grant: you borrow more relative to the property value, which means more interest paid over the life of the loan. It trades a lower cash barrier today for slightly higher leverage.
Frequently asked questions
Does the KredEx guarantee make my loan cheaper?+
No — it reduces the required down payment, not the interest rate. You also pay a guarantee fee, and borrowing at higher LTV means more total interest. Its value is access, not price.
How do I apply for the guarantee?+
Through the bank issuing your mortgage. Tell the bank you want to use the state guarantee; it checks your eligibility against current criteria as part of the loan process.
Can I combine the guarantee with any bank?+
The major Estonian mortgage banks work with the scheme. Terms and how much deposit they still expect can differ, so compare several banks with the guarantee factored in.
Is there a similar scheme in Finland?+
Finland has its own instruments — the ASP savings scheme and a state guarantee (valtiontakaus) for owner-occupied homes. See our [Finnish mortgage guide](/fi/asuntolaina) for how those work.
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