LHV exceeded EUR 1.5 billion in home loans

20.03.2025

Last month, LHV’s home loan portfolio exceeded the EUR 1.5 billion mark. The rapid expansion of this portfolio showcases how LHV has effectively capitalised on its strengths in the competitive home loan market. The bank has increased its market share, with the ambitious aim of financing one in every four home purchases across Estonia.

Catlin Vatsel, the Head of Private Financing Department at LHV, explained that reaching EUR 1.5 billion clearly reflects the growing appreciation among clients for the benefits and convenience offered by a local bank. ‘Our goal is to continue providing the fastest home loan service in Estonia, while ensuring a high level of client satisfaction, which stood at 99% last year,’ Vatsel noted.

She also pointed out that the refinancing campaign from the previous year played a key role in achieving this ambitious target. ‘For instance, we brought in nearly EUR 160 million worth of home loans from other banks. Despite a general slowdown in the market in 2024, we issued 65% more loans for new home purchases compared to the previous year. Over the summer months, we were also able to maintain our position as the leader in issuing new home loans,’ she specified.

Since 2016, LHV has assisted in financing 24,000 home purchases, making a substantial contribution to Estonia’s home loan market. In 2024, LHV home loans accounted for about one-third of the EUR 1 billion growth in the total loan portfolio of the LHV Group.

Vatsel noted that most home loans are granted in the Harju, Tartu, and Pärnu regions, but demand is steadily increasing in other areas, including smaller islands. ‘Our next ambitious goal is to consistently finance one in every four home purchases in Estonia,’ Vatsel added.

By the close of 2024, the average price per square metre of real estate in Estonia had risen to EUR 2,796, with the average home loan amount ranging between EUR 140,000 and EUR 150,000, and the average interest margin standing at 1.5–1.6%, plus Euribor.

LHV started offering home loans in 2016, and since then, has grown from a four-person team to nearly 40 dedicated professionals, serving clients across Estonia.

LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited. The Group employs over 1,160 people. As at the end of February, LHV’s banking services are being used by 462,000 clients, the pension funds managed by LHV have 113,000 active clients, and LHV Kindlustus protects a total of 174,000 clients. LHV Bank Limited, a subsidiary of the Group, holds a banking licence in the United Kingdom and provides banking services to international financial technology companies, as well as loans to small and medium-sized enterprises.

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