Minimum down payment under Bank of Lithuania requirements
From 2024 through August 2026 the minimum down payment at Lithuanian banks is 15% of the property value for all buyers. From 1 August 2026 the Bank of Lithuania will introduce new requirements:
- First home (buyer and co-borrower have not owned property in the last 5 years) — minimum down payment decreases to 10%;
- Second or subsequent home — remains at 30%, with an exception to 15% if the previous loan balance has fallen to 50% of the original amount.
For auction properties banks often take a more conservative position — they may require 20–25% down payment, especially if the object is neglected or has legal restrictions.
Guarantee deposit and down payment — are they the same thing?
No. They are two different things with different functions:
- Guarantee deposit — paid when registering for the auction (typically 10% of the starting price). If you win and pay — counted toward the purchase price. If you lose — refunded.
- Down payment — the bank's requirement, calculated from the final purchase price. The guarantee deposit may be counted as part of the down payment, but this depends on the specific bank's decision.
In practice: if the property is €100,000, the guarantee deposit was €10,000 (10%), and the bank requires a 15% down payment, you still need an additional €5,000 of your own funds. Discuss these figures with the bank in advance.
How is a mortgage registered for auction-acquired property?
The procedure is the same as a regular purchase:
- The notary signs the sale-purchase agreement;
- At the same time or immediately after, the bank loan and mortgage agreement is concluded (also at the notary);
- The mortgage is registered at the Register Centre — typically within 1–5 working days.
The state fee for mortgage registration is approximately €57.40. The notary fee for the mortgage agreement is 0.4–1% of the contract value. Additionally — property valuation (€200–400) required by the bank.
Can second-pillar pension funds be used?
Yes. Since 2017 in Lithuania it has been possible to transfer accumulated second-pillar pension capital toward a housing loan down payment or partial repayment, if the first home is being purchased and its value does not exceed €400,000. Funds are transferred directly from the pension fund to the bank account.
Important to know: when withdrawing accumulated capital early (before pension age), a 15% income tax applies. Before using this option, consult a tax specialist.