Buying a home is a straightforward and a non-bureaucratic process in Estonia. Non-residents can buy property in Estonia on the same terms as residents. In most cases, buying a flat has no restrictions.
Usually, a sale/purchase agreement has to be concluded and notarized along with a 10% buyer's deposit. To transfer the ownership of a property, and to make the title legally valid, you have to submit a notarized application via https://www.rik.ee/en/e-land-register. This process normally takes about two months.
The best place to look for real estate are through websites such as KV.ee and city24.ee, and also real-estate agencies such as UusMaa, Arco Vara, Pindi, Kawe, Bonava, RE Kinnisvara, and Domus. Agencies will have different English-written tips and guides available on their websites. These will give you important background information on various points to consider when buying a home.
As our modern real-estate market is quite heated, many new-construction apartment houses are almost fully sold before the work even begins. If you have an idea of what kind of home you are looking for, make sure to keep your eye on upcoming projects.
If you need a bank loan for buying a home, it would be wise to start discussions with several banks, so that you can better understand what their terms are, and if you are eligible for a loan. Usually, all banks offer loan consultations free of charge, and their websites have good calculators that can be used to estimate monthly payments, or other costs.
Swedbank, SEB, LHV, and Luminor are the biggest banks to consider. Keep in mind that banks tend to give mortgage loans until the expiry date of your residence permit. A long-term residence permit offers wider options.
As a general rule, the banks want to see an applicant's recent salary statements over the last 6 months, and you will need to prove that you have a steady job, and suitable credit capacity. You can ask for a loan if your income (salary, dividends, rental income) is sufficient enough to cover the loan payments while also covering your personal daily expenses.
A deposit of about 20% is needed when applying for a loan. It will be much easier to get a loan for a new-construction home or apartment, compared to an older property that needs renovation. This detail is relevant for both bigger cities (Tallinn, Tartu, Pärnu) and also the countryside. Overall, terms and conditions are quite similar between different banks, but each bank has its own individualized priorities and risk criteria. Make sure to inquire about these large and small details.