No matter what your plans for Latvian property are, the first question you are likely to encounter is the issue of financing the whole enterprise. The two primary choices are either investing your personal funds or applying for a mortgage. As of 2018, there are 11 major Latvian banks that offer mortgage services. While each is different, the average interest rates are around 2%, which makes mortgage available for the majority of individuals, and especially legal persons. There is also a number of non-bank credit institutions, which may satisfy your needs for a proeprty loan.

When choosing a particular credit institution, it is advisable to study the composition of each interest rate. It usually consists of a fixed and flexible parts, where the flexible part is tied to the international economic development. This is the main factor that defines the risks you take with a particular bank. Another essential parameter is the overdue payment fine. While it is best not to overdue, of course, sometimes it is unavoidable, and the best safeguard would be calculating the possible fines beforehand.

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