21.8 C
Sunday, July 21, 2024
No menu items!
HomeEstoniaCoop Pank offering home loans to teachers on favorable terms

Coop Pank offering home loans to teachers on favorable terms

From Monday, Coop Pank is offering home loans with a lower interest margin to teachers of secondary schools and kindergartens in Estonia.

In addition, the bank will pay a loan contract fee for teachers along with their home insurance premiums for the first year, Coop Pank said in a press release.

The interest rate on a Coop Pank teacher home loan starts from 1.69 percent plus six-month Euribor. However, if the teacher submits a loan application before May 31, 2024, the bank’s margin for the first year will be 0 percent and only the six-month Euribor will have to be paid. When a year has passed since the issuance of the zero-margin loan, the standard risk margin will be applied, starting at 1.69 percent for teachers.

Karin Ossipova, head of real estate financing at Coop Pank, said that the bank strives to improve life in Estonia.

“Teachers play a significant role in Estonia’s development, and concerns about teachers’ workload and how they cope with their role affect the entire society. We are just a bank, and we cannot bridge the gap in teachers’ workloads, responsibility, and salaries, but we can help teachers afford the housing they dream of and deserve,” Ossipova said.

In addition to a more favorable credit margin, the bank will waive the loan agreement fee for teachers and pay up to 100 euros for home insurance payments made through Coop Kindlustusmaakler during the first year of the loan. The teacher’s home loan customer also saves on banking fees since for the first year the teacher is offered the Rahn payment package free of charge.

According to Coop Pank, all teachers of kindergartens and secondary schools can apply for a teacher home loan, including teaching assistants and support specialists, school psychologists, special educators, social pedagogues, educational consultants, heads of the educational process, and heads of educational institutions. A teacher home loan can be used to purchase, build, and renovate a home, or to refinance an existing home loan.

Karin Ossipova said that the purpose of the new loan is to make it as easy as possible for a teacher to purchase their own home. To receive a home loan on better terms from Coop Pank, a teacher can be either the main loan applicant or a co-applicant. One can apply for a teacher’s housing loan together with various Kredex guarantees for housing loans, which will help to significantly reduce the amount of self-financing.

“The most popular of them are, for example, a guarantee for a young specialist, a guarantee for a young family and a guarantee for a family with children. To reduce their own financing, teachers who live further from major cities and towns can also take advantage of the Kredex guarantee for home buyers in rural areas and the joint loan offered by the Foundation for Rural Development (MES),” Ossipova said.

Coop Pank, based on Estonian capital, is one of the five universal banks operating in Estonia. The number of clients using Coop Pank for their daily banking reached 180,300. Coop Pank aims to put the synergy generated by the interaction of retail business and banking to good use and to bring everyday banking services closer to people’s homes. The strategic shareholder of the bank is the domestic retail chain Coop Eesti, comprising of 320 stores.

Source: BNS

(Reproduction of BNS information in mass media and other websites without written consent of BNS is prohibited.)


Please enter your comment!
Please enter your name here


Most Popular

Recent Comments