Authored by the expert who managed and guided the team behind the Latvia Property Pack
Everything you need to know before buying real estate is included in our Latvia Property Pack
Yes, foreigners can get a mortgage in Latvia, but the process works differently than what you might expect from other countries.
Latvia has clear rules set by its central bank that apply to everyone, and banks add their own requirements on top for foreign buyers.
We constantly update this blog post to reflect the latest regulations and market conditions in Latvia.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Latvia.
Can foreigners get a mortgage in Latvia right now?
Can a foreigner get a residential mortgage in Latvia right now?
Yes, foreigners can get a residential mortgage in Latvia, but approval is not automatic and depends heavily on how well you can document your finances.
EU and EEA citizens with stable income and clear documentation typically have the easiest path to mortgage approval in Latvia, followed by non-EU residents who can demonstrate strong financial ties to the country.
The most common restriction Latvian banks impose on foreign applicants is requiring a larger down payment (often 20% to 30% instead of the standard 15%) to compensate for the added complexity of verifying cross-border income and enforcing the loan if something goes wrong.
By the way, we have a whole document dedicated to mortgages for foreigners in our property pack about Latvia.
Can I get a mortgage in Latvia without residency?
Getting a mortgage in Latvia without residency is possible, but it is significantly harder and depends on which bank you approach.
Residents with a Latvian ID and local bank account have the easiest time, EU and EEA residents buying in Latvia can usually get approved with straightforward documentation, and non-residents from outside the EU face the toughest requirements but can still succeed with a larger deposit and very clean paperwork.
Banks typically require non-residents to provide a higher down payment (often 25% to 30%), more extensive income documentation, and proof that they have liquid reserves covering 6 to 12 months of loan payments.
By the way, we've written a blog article detailing residency and citizenship options that exist when you buy property in Latvia.
Do banks require a local work contract in Latvia right now?
No, Latvian banks do not strictly require a local work contract, but having one is the fastest way to get your mortgage approved because it makes income verification simple.
If you do not have a local work contract, banks in Latvia will typically accept foreign employment contracts, tax returns, audited financial statements, and consistent bank statements showing regular income deposits over at least 12 to 24 months.
When applicants do have a local work contract in Latvia, banks usually want to see at least 6 to 12 months of employment history with the same employer before they feel comfortable approving a mortgage.
Can self-employed foreigners qualify for a mortgage in Latvia?
Yes, self-employed foreigners can qualify for a mortgage in Latvia, but they should expect stricter documentation requirements and more conservative loan amounts compared to salaried applicants.
Banks in Latvia typically require self-employed applicants to provide at least 2 years of filed tax returns and matching bank statements, and having 3 or more years of consistent business history makes approval significantly easier.
Is foreign income accepted for mortgages in Latvia right now?
Yes, Latvian banks accept foreign income for mortgage applications, but the income must be verifiable and well-documented in a format the bank can easily assess.
When you earn income abroad, banks in Latvia typically require translated payslips, official tax returns from your country of employment, employer reference letters, and bank statements showing consistent deposits, and they may ask additional questions about how the funds will be transferred for monthly payments.
Can I buy a primary home (and an investment property?) with a mortgage in Latvia as a foreigner?
Yes, foreigners can obtain a mortgage for a primary home in Latvia, and this is the easier option because Latvian regulations allow banks to lend up to 90% of the property value for owner-occupied homes.
Foreigners can also get a mortgage for an investment property in Latvia, but the rules are stricter: the central bank caps the loan-to-value ratio at 70% for buy-to-let properties, which means you will need at least 30% as a down payment.
If you're buying for investment, you might want to check our blog article about buying and renting out in Latvia.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Latvia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What are the eligibility rules banks actually use in Latvia?
What minimum monthly income do I need in Latvia as of 2026?
As of early 2026, there is no fixed minimum income requirement in Latvia, but based on the central bank's affordability rules, you typically need a net monthly income of at least 1,900 to 2,000 euros (roughly 2,000 to 2,100 USD) to qualify for a mortgage of around 150,000 euros.
Most approved borrowers in Latvia have net monthly incomes between 2,000 and 4,000 euros (2,100 to 4,200 USD), which gives them comfortable room within the debt-to-service limits while still qualifying for meaningful loan amounts.
The minimum income requirement scales directly with the loan amount in Latvia: if you want to borrow more, you need to earn more, because banks cannot let your monthly payment exceed 40% of your net income under the central bank's rules.
Yes, banks in Latvia allow combining household incomes from multiple applicants (such as spouses or partners), which can significantly increase your borrowing capacity if one person's income alone would not meet the threshold.
What debt-to-income limit do banks use in Latvia right now?
Banks in Latvia follow the central bank's macroprudential rules, which cap the debt-service-to-income ratio (DSTI) at 40% of your net monthly income, meaning your total monthly debt payments cannot exceed 40% of what you take home after taxes.
When calculating your debt-to-income ratio in Latvia, banks include all existing monthly obligations such as credit card minimum payments, car loans, student loans, personal loans, and any other mortgages you may already have.
Do I need a local credit score in Latvia right now?
No, Latvia does not use a single centralized credit score system like the FICO score in the United States, so banks rely more heavily on verifying your income, reviewing your bank statements, and checking your existing debts.
Banks in Latvia can accept foreign credit reports, especially from EU, UK, or US credit bureaus, but these reports supplement rather than replace the local underwriting process, meaning you will still need to provide full income documentation and proof of financial stability.
Do banks require a local guarantor in Latvia right now?
No, a local guarantor is not a standard requirement for residential mortgages in Latvia, as banks primarily rely on the borrower-based limits (loan-to-value, debt-to-income) and property collateral rather than personal guarantees.
Banks in Latvia are most likely to request a guarantor or additional security when the applicant is a non-resident with limited documentation, when the down payment is at the minimum threshold, or when the income verification is weaker than usual.
If a guarantor is required, they typically need to be a Latvian or EU resident with stable income and a clean credit history, and they must be willing to take on full liability for the loan if you default.
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How much cash do I need upfront in Latvia as of 2026?
What's the minimum down payment in Latvia right now?
For foreign buyers purchasing a primary residence in Latvia, the minimum down payment is typically 15% to 20% at most mainstream banks, though the regulatory framework technically allows up to 90% financing (10% down) for well-qualified owner-occupiers.
Down payment requirements in Latvia range from as low as 5% (with a state ALTUM guarantee for eligible buyers) to 30% or more for non-residents buying investment properties, with most foreign buyers landing somewhere between 20% and 25% in practice.
You might secure a lower down payment in Latvia if you have local residency, a Latvian employment contract, are buying an energy-efficient property, or qualify for the ALTUM state guarantee program, though most foreigners without these advantages should budget for at least 20%.
What loan terms can I realistically get in Latvia as of 2026?
What mortgage interest rates are typical in Latvia as of 2026?
As of early 2026, typical mortgage interest rates for foreigners in Latvia range from approximately 4% to 6%, with most loans structured as a bank margin plus the 6-month Euribor reference rate.
The main factors that influence your interest rate in Latvia include your down payment size (larger deposits get better rates), your income stability and documentation quality, the energy efficiency rating of the property, and how much competition exists between banks for your particular deal.
Foreigners in Latvia often receive interest rates toward the higher end of the range (around 5% to 6%) compared to local residents, though this gap narrows significantly if you have residency, local employment, or an especially strong financial profile.
The interest rate is one of the factors we look at when assessing whether now is a good time to buy a property in Latvia.
Are fixed-rate mortgages available in Latvia right now?
Yes, fixed-rate mortgages are available to foreigners in Latvia, with several major banks including Citadele and Swedbank offering the option to choose between fixed and variable interest rates.
Fixed-rate periods in Latvia are typically offered for shorter terms such as 3, 5, or 10 years rather than the entire loan duration, so it is important to ask your bank exactly how long the rate is fixed and what happens when the fixed period ends.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Latvia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
How do I maximize approval chances in Latvia right now?
What financial profile gets "yes" fastest in Latvia right now?
The ideal financial profile for fast mortgage approval in Latvia is someone with a clear paper trail: stable employment or business income, well-documented assets, a down payment of at least 20%, and monthly debt payments that stay well under the 40% limit.
Banks in Latvia consider a net monthly income of at least 2,500 to 3,000 euros (roughly 2,600 to 3,200 USD) with a debt-to-income ratio of 30% or less as ideal for fast approval, giving them confidence that you have buffer room even if rates rise.
Salaried employees with at least 12 months of continuous employment history at the same company are most favored by Latvian banks, though self-employed applicants with 2 or more years of consistent tax filings can also qualify without major delays.
A down payment of 20% to 25% signals a strong applicant profile in Latvia, and going above 25% can sometimes help you negotiate a better interest rate or faster processing.
We give more detailed tips in our pack covering the property buying process in Latvia.
What mistakes make foreigners get rejected in Latvia right now?
The most common mistake that leads to mortgage rejection for foreigners in Latvia is not being able to clearly explain where the down payment money came from, because banks must verify the source of funds under strict anti-money laundering rules and will reject applications where the money trail is unclear.
The biggest financial red flag for foreign applicants in Latvia is having a debt-to-income ratio that is right at the 40% limit with no buffer, because banks prefer applicants who have breathing room in their budget and view borderline cases as higher risk.
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Which banks say yes to foreigners in Latvia right now?
Which banks are most foreigner-friendly in Latvia as of 2026?
As of early 2026, the banks considered most foreigner-friendly for mortgages in Latvia are Swedbank, SEB, Citadele, and Luminor, all of which are large retail banks with established processes for handling international documentation.
These banks are more accessible to foreign applicants because they have English-speaking staff, experience processing EU and international income documents, and clearly published mortgage requirements on their websites, which reduces surprises during the application process.
Which banks accept non-resident borrowers in Latvia right now?
Several banks in Latvia accept non-resident borrowers, including Rietumu Banka which explicitly markets mortgages to non-residents, and the major retail banks (Swedbank, SEB, Citadele, Luminor) which will consider strong non-resident applications on a case-by-case basis.
Non-resident applicants at these banks typically face additional requirements including larger down payments (25% to 30% minimum), more extensive documentation of income and assets, and sometimes higher minimum loan amounts, as Rietumu Banka requires a minimum mortgage of 200,000 euros with a maximum term of 15 years for non-residents.
Do international banks lend more easily in Latvia right now?
No, international banks do not necessarily lend more easily to foreigners in Latvia, because the mortgage market is dominated by locally active Nordic and Baltic banking groups (Swedbank, SEB, Luminor) rather than global investment banks doing retail lending.
The major banks operating in Latvia with international parent companies include Swedbank (Swedish), SEB (Swedish), and Luminor (a joint venture with Nordic roots), but they operate under Latvian regulations and do not offer special treatment to foreigners simply because of their international ownership.
The main advantage of using these internationally connected banks in Latvia is their familiarity with EU income documentation standards and their ability to communicate in English, not significantly easier approval criteria.
We made this infographic to show you how property prices in Latvia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Latvia, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why we trust it | How we used it |
|---|---|---|
| Latvijas Banka | Latvia's central bank sets the binding mortgage rules. | We used it as the foundation for all LTV, DSTI, and DTI limits. We translated their technical rules into plain language for homebuyers. |
| European Systemic Risk Board (ESRB) | The EU's macroprudential oversight body documents national measures. | We cross-checked Latvia's limits against the EU-level record. We used it to verify that these are regulatory requirements, not just bank policies. |
| European Banking Authority (EBA) | Sets EU-wide standards for how banks assess borrowers. | We used it to explain why banks require extensive documentation. We referenced it to frame approval tips as aligned with how banks are supervised. |
| SEB Latvia | One of Latvia's largest retail banks with public pricing. | We used their example rates and down payment requirements as real-world benchmarks. We referenced their ALTUM guarantee integration for lower deposits. |
| Citadele | A major local bank with transparent mortgage terms. | We used their financing percentages and rate structure to verify market norms. We confirmed the fixed vs. variable rate options available. |
| Swedbank Latvia | The largest retail banking group in the Baltics. | We used it as a benchmark for mainstream approval expectations. We verified that both fixed and variable rate options are offered. |
| Luminor Latvia | A major Baltic bank with clear product disclosures. | We used it to confirm the 30-year maximum term standard. We triangulated their requirements with other major lenders. |
| Central Statistical Bureau of Latvia | Latvia's official statistics agency for wage data. | We used average wage figures to calculate realistic income benchmarks. We referenced it to show what income levels banks consider normal. |
| Ministry of Welfare (Latvia) | Publishes the statutory minimum wage levels. | We used it to anchor minimum income discussions. We explained why very low incomes rarely pass affordability tests. |
| EMMI (European Money Markets Institute) | The official administrator of Euribor benchmark rates. | We used it to explain why Latvian mortgage rates move with Euribor. We referenced it as the source of truth for the base rate component. |
| Rietumu Banka | Markets mortgages explicitly to non-residents. | We used their terms to illustrate options for non-resident borrowers. We noted their higher minimums and shorter terms as a reference point. |
| Likumi.lv (Land Privatisation Law) | Latvia's official legal portal for property laws. | We used it to note that land purchases may have extra restrictions. We referenced it to keep ownership advice legally grounded. |
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