Government agency has provided state backing to 5,700 family mortgages

Within two and a half years, the state-owned Altum finance institution has helped 5,700 families secure mortgages to buy housing, Latvian Radio reported on June 27.

Altum board member Inese Zīle told Latvian Radio that about 60% of the loans are given to families in Riga and its vicinity. 

"As of now we've granted Altum loan guarantees to 5,700 families with children ... for the total sum of €38.6, which was the guarantee sum granted by Altum," she said.

She said the total sum of mortgages amounts to €341m.

Within the Altum program for state-backed loans, Latvia acts as a guarantor for part of the downpayment. The government-guaranteed part is 10-20% from the housing value, depending on the number of children in the family.

Thus the state helps families bring down the time required to save for the downpayment, which is typically 25-30% of the total sum.

It's possible that starting next year the program will be expanded in that highly skilled people will also be able to apply for state-backed loans to buy their first home.

According to estimates, the state could provide part of the mortgage downpayment to 1,200 young people each year. 

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