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.