INDEXO Bank is adding a new type of mortgage loan to its offering – a home equity loan, which allows residents to use the value of their existing property to receive financing for various purposes, such as home renovation, purchasing a new property, consolidating loans, or implementing other plans. The home equity loan widely known in Western Europe and the United States, has not been commonly used in Latvia. Now INDEXO has made it easy and quick, offering the simplest and most convenient way to use the value of one’s home.
A home equity loan is a solution that enables individuals to “unlock” money from the value of a home they already own and use it for larger goals. Financing is available up to 85% of the property’s value, with an added interest rate starting from 1.9% per year—significantly lower than consumer loans. The new service is already available in the INDEXO Bank mobile app, and applications are reviewed within one business day.
“We are introducing a simple way to turn home value into financing – quickly, clearly, and through the mobile app. Until now, this kind of solution in Latvia often meant a complicated process, which is why people chose more expensive loans. Our goal is to raise the bar in mortgage lending so that financial tools that are standard elsewhere in the world become a truly accessible everyday choice,” says Jānis Mūrnieks, Member of the Management Board of INDEXO Bank and Head of Retail Banking.
In other parts of the world, home equity loans are widely used because they are a smart financial solution that allows people to borrow on significantly more favorable terms compared to consumer loans.
About INDEXO financial services group
INDEXO is a financial services group that includes pension management companies IPAS INDEXO, AS INDEXO Atklātais Pensiju Fonds, IPAS VAIRO, as well as INDEXO Bank and AS DelfinGroup.
The pension management companies within the INDEXO group in Latvia offer modern 2nd and 3rd pillar pension plans. More than 159 thousand clients entrust the group with managing their pension savings totaling more than EUR 1.56 billion.
INDEXO Bank, a credit institution licensed by the European Central Bank, serves more than 52 thousand clients, with total client deposits amounting to EUR 78.6 million and EUR 61.5 million in loans.
Founded and headquartered in Latvia, INDEXO is a Nasdaq Riga-listed company with over 7 300 shareholders. Its mission is to fight for a better financial environment in Latvia and strengthen the well-being of Latvian residents by providing modern and personalized financial services. For more information visit www.indexo.lv.
DelfinGroup is a licenced fintech company established in 2009 and currently operating in Latvia and Lithuania. The company operates under the brand names Banknote and VIZIA. The company has been profitable every year since 2010. DelfinGroup continuously develops and offers consumer loans, pawn loans, and the sale of pre-owned goods online and at more than 80 branches across Latvia. For more information visit www.delfingroup.lv.