Buying Your First Home in Lithuania: A Step-by-Step Guide
Buying your first home is one of the biggest financial decisions you'll ever make — and one of the most confusing. The internet is full of conflicting advice, bank websites read like legal documents, and everyone you ask has a different experience.
This guide cuts through the noise: how much you actually need to save, what banks look at, what state support is available, and what happens between your first apartment viewing and the notary's office.
How Much Money Do You Need Before You Start?
Down Payment
When buying your first home in Lithuania, the bank requires a minimum 10% down payment on the purchase price. That means:
- €100,000 property → at least €10,000 in savings
- €150,000 property → at least €15,000 in savings
This rule applies to first-time buyers who have not owned residential real estate in the past 5 years. If you're buying a second property or an investment apartment, the required down payment jumps to 30%.
💡 Tip: 10% is the floor, not the goal. The larger your down payment, the smaller your loan and monthly payment. If you can stretch to 15–20%, it's worth waiting.
Additional Costs on Top
The down payment isn't everything. On top of the purchase price, budget for:
- Notary fee (sale-purchase deed): ~0.37% of the price
- Notary fee (mortgage registration): ~0.17–0.25% of the loan amount
- Bank administration fee: ~0.5% of the loan
- Property appraisal (required by the bank): ~€150–400
- Property insurance (first year): a few hundred euros
Total additional costs for a typical transaction: ~€1,500–2,500
Good news: Lithuania has no real estate transfer tax (stamp duty). Most Western European countries charge buyers an additional 3–10% — in Lithuania, that cost simply doesn't exist.
Before calculating how much you need to save, check how much you can actually borrow with the borrowing capacity calculator — it'll set a realistic budget ceiling.
What Do Banks Look At?
Debt Service-to-Income Ratio (DSTI)
Banks don't just check your salary — they stress-test whether you could handle the loan if interest rates rise. The rule: your monthly payment cannot exceed 50% of your gross monthly income, calculated at a 6% interest rate.
Practical example:
- Gross salary: €2,000/month
- Maximum payment (stress test): €1,000/month
- At today's actual rates (~3.8%): your real payment would be lower, but the bank checks at 6%
If you have other loans (car, consumer credit), their monthly payments count toward that 50% as well.
Other Bank Criteria
- Employment tenure: most banks want at least 3–6 months with your current employer
- Credit history: checked against the Credit Bureau — any late payments will show
- Loan term: maximum 30 years
- Age: the loan term must typically end before you turn 70–75
Variable or Fixed Interest Rate?
The most common mortgages in Lithuania are variable-rate: 6-month EURIBOR + a bank margin of 1.5–2.5 percentage points. By late 2025, total rates were around 3.7–4.5% — well below the 2023–2024 peak of ~5.7%.
Fixed rates (typically locked for 5 years) offer predictability but cost slightly more upfront. Use the loan calculator to compare both scenarios with your specific numbers.
💡 Tip: Approach multiple banks, not just your current one. Margins differ by 0.3–0.5 percentage points — over a 30-year loan, that's thousands of euros. And get a preliminary bank decision before you start house-hunting: it's free, non-binding, and clarifies your real budget.
State Support for Young Families
If you're under 36 and buying your first home, you may be eligible for a state subsidy that reduces your loan balance. The program is called "Financial Incentive for Young Families" (Finansinė paskata jaunoms šeimoms).
Who Qualifies?
- Married or registered partners where at least one is under 36
- Single parents under 36 with children
- Single individuals under 36 (no children required)
- Large families (3+ children) — no age limit
- Persons with disability (≤55% work capacity) — no age limit
Important: neither you nor your partner should own residential property.
How Much Can You Get?
The subsidy is calculated on the loan amount, up to a maximum of €87,000:
| Situation | Subsidy |
|---|---|
| No children / single | 15% |
| 1 child | 20% |
| 2 children | 25% |
| 3+ children | 30% |
| Energy-efficient property (A++ class) | +5% additional |
Practical example: A couple with one child takes a €87,000 loan — they receive a €17,400 subsidy applied directly to the loan balance.
Restrictions
- Maximum property price: €120,000
- The program does not apply in Vilnius, Kaunas, or Klaipėda cities
- The subsidized property cannot be sold for 10 years without potential partial repayment of the subsidy
Applications are submitted via spis.lt or your municipality. Application windows are announced periodically — follow the Ministry of Social Security and Labour for updates.
What Does the Buying Process Look Like?
From the decision to buy to registration at the Real Property Register, here are all the steps:
1. Check your borrowing capacity Before searching for a property, get a preliminary bank decision. It's free, non-binding, and shows your actual budget.
2. Search for a property Lithuania's main real estate portals: Aruodas.lt and Domoplius.lt. Also check agency listings and direct seller ads.
3. Verify the property at the Real Property Register Before signing anything, pull a free Real Property Register extract at registrucentras.lt. It shows the real owners, existing mortgages, seizure orders, and any encumbrances.
4. Preliminary agreement and deposit Once you've agreed on a price, you sign a preliminary sale-purchase agreement and pay a deposit (typically 5–10% of the price). This protects both sides: if you back out, you lose the deposit; if the seller backs out, they return double.
5. Bank property appraisal The bank commissions an independent valuation (~€150–400) to confirm the asking price is in line with the market.
6. Signing the mortgage agreement The bank prepares the final loan contract. Read everything carefully before signing — especially the margin, EURIBOR repricing frequency, and early repayment fees.
7. Notarial deed At the notary, you sign the final sale-purchase deed and transfer the remaining purchase price. The notary submits the documents to the Real Property Register the same day.
8. Registration Within a few business days, you're the official owner.
What Are the Real Transaction Costs?
Here's a breakdown for buying a €130,000 apartment with a €117,000 loan:
| Cost item | Estimated amount |
|---|---|
| Down payment (10%) | €13,000 |
| Notary fee (sale deed ~0.37%) | ~€480 |
| Notary fee (mortgage ~0.2%) | ~€234 |
| Bank administration fee (~0.5%) | ~€585 |
| Property appraisal | ~€250 |
| First month insurance | ~€100 |
| Total required | ~€14,650 |
This figure helps set a more realistic savings target — don't aim for just 10%, add another €2,000–3,000 for transaction costs.
To check whether a specific asking price is reasonable for a given location and property type, use the property valuation calculator.
New Build or Resale?
Both have their merits:
| New build | Resale | |
|---|---|---|
| Price | Usually higher €/sqm | Lower €/sqm |
| Move-in | 1–2 year wait | Move in immediately |
| Energy efficiency | A/A+ class — low utility bills | Older stock — bills can be double |
| Negotiation | Little — developers rarely budge | More room to negotiate |
| Warranty | 5-year construction warranty | Sold as-is |
| Risk | Developer insolvency, construction delays | Hidden defects, ageing systems |
💡 Tip: If you're considering a new build, research the developer: how many projects have they completed, are there any insolvency proceedings, is the project insured? Never pay a large deposit before legal protections are in place.
5 Most Common First-Time Buyer Mistakes
1. Skipping the bank's preliminary decision Rushing to search for apartments without knowing the actual budget. A month later it turns out the desired apartment is €20,000 over budget — back to square one.
2. Underestimating additional costs Saving exactly 10% for the down payment and assuming that's enough. The notary, bank fee, and appraisal then arrive as a surprise.
3. Not checking the Real Property Register Taking the seller's (or agent's) word for it. It later emerges there's an existing mortgage or a seizure order on the property.
4. Only approaching one bank Going straight to their current bank without comparing. Different banks' margins vary by 0.3–0.5 percentage points — over a 30-year loan, that's thousands of euros.
5. Buying at the absolute financial limit No buffer whatsoever. One larger repair job or a change in employment and the monthly payments become a struggle. Ideally, keep 3–6 months of loan payments in reserve.
Frequently Asked Questions (FAQ)
How much down payment is required for a first home in Lithuania?
A minimum 10% down payment is required when buying your first home in Lithuania. This applies to buyers who have not owned residential real estate in the past 5 years. On top of that, budget ~€1,500–2,500 for transaction costs (notary, bank fee, property appraisal).
Can I get state support when buying my first home?
Yes — if you are under 36 and buying outside a major city (not Vilnius, Kaunas, or Klaipėda), you may qualify for the "Financial Incentive for Young Families". The subsidy ranges from 15–30% of the loan amount (up to €87,000), depending on the number of children. The maximum supported property price is €120,000.
What is the maximum mortgage term in Lithuania?
The maximum loan term is 30 years. A longer term reduces your monthly payment but increases the total interest paid over the life of the loan.
Is there a real estate transfer tax in Lithuania?
No. Lithuania is one of the few European countries with no real estate transfer tax (stamp duty). This significantly reduces buying costs compared to, for example, Germany (3.5–6.5%) or the UK (up to 12%).
How do I find out how much I can borrow?
The quickest way is to use the borrowing capacity calculator, which estimates your maximum loan based on your income and existing financial commitments. For a precise answer, request a preliminary decision from a bank — it's free.
All NT Vadovas housing calculators are available in one place — loan, value, profitability, and borrowing capacity calculators, free and without registration.
Sources:
- Bank of Lithuania — Responsible Lending Regulations — accessed 2026-03-29
- Ministry of Social Security and Labour — Financial Incentive for Young Families — accessed 2026-03-29
- Ober-Haus — 2025 Lithuanian Real Estate Market Review — accessed 2026-03-29
- Luminor — Costs to expect when buying a home — accessed 2026-03-29
- Real Property Register of Lithuania — accessed 2026-03-29