Mortgage Lending For Young Families: Favorable Mortgage Rates, Family Lending Loans

As you grow older, your need for one’s home will only increase. But what to do because the choice is not great: to save money on housing for years (even decades) or to get a loan and buy a home right away?

The latter option is undoubtedly much more advantageous for young families as it allows them to buy their home immediately, without saving money. In addition, only the family can enjoy a number of privileges when purchasing their real estate. How to get the necessary government support and what to do if it is not available – this is what we want to talk about now.

What is a “family loan” and what is it for?

What is a "family loan" and what is it for?

At present, many thousands of home loans have been granted to young families with Latvian state guarantee. The opportunity to help many in need of housing was provided through the Good Finance program as well as through the involvement of commercial banks.

For many young families, the down payment is up to 15% of the property price – an unrealistic amount. That is why Good Finance helps to overcome the most serious obstacle – the down payment.

In commercial banking programs

In commercial banking programs

The next borrower may find a home loan without down payment , but the annual rate for such products will be much higher, so it is not worth the expense in this case. Similarly, a home loan without a down payment puts a lot higher demands on its customers, which is not too much for many. The state-guaranteed mortgage helps you to buy your real estate:

  1. Under optimal conditions.
  2. With a minimum down payment.
  3. Using a favorable loan rate.

The Young Families Support Program differentiates their borrowers by number of children. It is this indicator that determines the amount of the discount:

  • There is 1 child in the family: the down payment is reduced to 10% or 10,000 euros .
  • There are 2 children in the family: the first down payment is reduced to 15% or 15,000 euros.
  • There are 3 children in the family: the down payment is reduced to 30% or 30,000 euros.

But potential home loan borrowers who want to use the Good Finance program need to know, although this assistance is mostly offered to young families with young children, it can also be used by more mature families. Any family with children under the age of 23 can apply for property support.

National program to support young professionals


What to do for those who have no children in the family but who dream of buying their own home every night? This is also the case with Good Finance: since 2018, a new offer to support new professionals has come into effect.

People will be able to use a home purchase program on credit:

  • Up to 35 years.
  • With higher education.
  • A steady income of a decent amount.

The operating mechanism of the Good Finance program to support young professionals operates on the same principle as young families. In other words, using the program is to reduce your down payment on your home loan.