Nearly one-third of the residents of Latvia, particularly those with families that have one child, feel that their current home is too small, a Citadele Bank and Snapshots.lv survey has found . 29% of respondents said that their home is too small . This was claimed most often by parents with one child (45%), as well as families with three or more children (36%) . 16% of families with one child and 6% of families with three or more children currently live in homes with less than 40 m2 of floor space.
“The survey shows that the greatest need for a larger home exists for young families with their first child,” says the head of the Citadele Bank’s Retail Lending Division, Baiba Tētiņa . “Nearly one-half of families that have sought consultations at the bank about a state-guaranteed mortgage loan have one child . It is good that the purchase of a new home has become more easily available for families . Changes in the law allow people to choose a mortgage loan with or without the ‘leave your keys behind’ principle, thus reducing the sum that is needed for the down payment . Where families once needed to save up 15% of the value of the home for the down payment, today the loan can be received with a down payment equal to only 5% of the value.”
17% of respondents said that their home has 40 or fewer square metres of floor space, 37% have 41 to 60 m2, 23% have 61 to 80 m2, and 23% live in larger homes.
Of 166 applications for mortgage loans, 61 have been approved for families with children, with the Citadele Bank providing financing for the purchase of a new home with a state guarantee for the down payment . Families in and around Rīga mostly want to purchase a flat, while families in other parts of Latvia are more likely to want to purchase a house.
As has been reported, families with children can receive mortgage loans with a state guarantee for the down payment from the Citadele Bank, with the down payment being lower, and financing from the bank being available up to 95% of the market value of the new home . Consultations are available at any Citadele branch by ringing6701-0873 or by visiting the bank’s homepage at www.citadele.lv.
The survey was conducted between February 23 and March 2, 2015, with 720 residents aged 18 and above being interviewed throughout Latvia.