Since 1 August 2026, qualifying first-home borrowers in Lithuania have been able to apply with a 10% mortgage deposit, compared with the previous 15% minimum. The change reduces the upfront savings some buyers need. In the price examples below, it reduces the cash needed for the deposit by €6,500–€14,000.
This is not an automatic right to a mortgage with a 10% deposit. Eligibility conditions still apply, and a lender can impose stricter requirements. This guide explains who the rule is intended for, what to check and why your actual offer may differ.
The 10% first-home deposit from August 2026: what changed?
Lietuvos bankas, the Bank of Lithuania, updated its Responsible Lending Regulations. From 1 August 2026, the regulatory minimum deposit for qualifying first-home borrowers fell from 15% to 10%. The existing 30% requirement for second and subsequent mortgages remains, with a stricter test for one of its exceptions. See the Bank of Lithuania's announcement.
| Borrower's situation | Before 1 August 2026 | From 1 August 2026 |
|---|---|---|
| Qualifying first-home mortgage; no property ownership within the five-year assessment period | 15% | 10% |
| First mortgage, but property owned within the past five years | 15% | 15% |
| Second or subsequent mortgage, without an applicable exception | 30% | 30% |
| Reduced-deposit exception for existing loans | 15% where the previous exception's conditions were met | A lower deposit may be available after more than half the original principal of each existing housing loan is repaid; confirm the amount with the lender |
The distinction is between borrowing situations, not simply the number of properties a person owns. There is also a separate exception for replacing a main home, subject to the lender's conditions and sale of the previous property. The change helps some buyers accumulate a deposit sooner while requiring others to have repaid more of their existing debt.
Who can qualify for a 10% first-home deposit?
The lender must establish that the application meets the first-home conditions. The Bank of Lithuania's current borrower guide makes several points particularly relevant:
- Neither the borrower nor any co-borrower may own real estate or have owned it within the relevant five-year lookback.
- The ownership test covers any real estate, including land, garages and commercial premises; it is not limited to apartments and houses.
- List acquisition and disposal dates and collect ownership evidence, including inherited or gifted shares and property abroad. Ask which register documents the lender needs.
- Disclose previous and current housing loans and other loans secured on property. A former home's sale date alone does not establish first-home eligibility.
- Document the source of your own funds, sustainable income and existing commitments. Ask the lender to confirm the applicable deposit category before committing to a purchase.
Co-borrowers matter. If a spouse or partner joining the application owns property or has owned it during the relevant period, the joint application does not meet that ownership condition even if you personally do. Do not assume property abroad is irrelevant; provide the lender with your complete history.
Why the 10% minimum does not oblige a bank to approve your loan
The Bank of Lithuania sets regulatory lending limits, but the credit institution decides whether to lend to an individual applicant. A 10% minimum therefore creates an available financing option, not a promise to every buyer.
Even if you meet the first-home criteria, a lender may ask for a deposit of 15% or 20%. A stricter requirement can reflect its assessment of the applicant and the property.
Lenders assess applications individually, including:
- income stability and its source, such as employment, self-employment or business ownership;
- credit history and existing financial commitments;
- the property's type, location and ease of resale;
- the household's overall finances and prospects.
A Lithuanian mortgage rule does not guarantee that a lender will accept a non-resident applicant or income earned abroad. Ask how it assesses your residence, income currency, evidence and property history. Citizenship, tax residence and mortgage eligibility are different questions.
A 10% deposit is a possibility, not a guarantee. It may make a first home accessible sooner, but the actual terms become clear only in the lender's offer. Compare several lenders on their deposit requirements as well as interest rates.
A 10% or 15% deposit: how much cash does each price require?
These illustrative purchase prices show the arithmetic. They are not verified city averages or a forecast of what a particular apartment in Vilnius or Kaunas should cost.
| Home price | 10% deposit | 15% deposit | Less cash required upfront |
|---|---|---|---|
| €130,000 | €13,000 | €19,500 | €6,500 |
| €170,000 | €17,000 | €25,500 | €8,500 |
| €220,000 | €22,000 | €33,000 | €11,000 |
| €280,000 | €28,000 | €42,000 | €14,000 |
The smaller deposit means borrowing more for the same purchase price; it is not a reduction in that price or in total borrowing costs. These figures also assume the lender accepts the property value used in the calculation.
The deposit is only one part of the cash budget. Allow separately for the notary, Registrų centras (Lithuania's Centre of Registers), any loan arrangement fee, valuation and insurance. An additional €2,000–€4,000 can be used as an illustrative planning allowance, but obtain actual quotations: transaction size, lender terms and required documents can change the total.
A realistic cash budget for a €170,000 home
An illustration, not a price list or mortgage offer: €17,000 deposit + a €3,000 allowance for transaction and financing costs + €5,000 for moving in and initial work + a €6,000 reserve remaining after the purchase = €31,000 of your own funds. Replace all four inputs with your figures. The moving-in budget and reserve are planning choices, not regulatory deposit amounts.
If the lender values that €170,000 home at €160,000 and lends 90% of the lower figure, the loan would be at most €144,000, leaving €26,000 of the price to fund yourself. With the other assumptions above, the cash budget becomes €40,000. Model this risk when the lender's valuation is below the purchase price; its actual offer could be lower still.
An advance paid to the seller is part of the price if the agreement credits it towards the purchase. Record the amount already paid and the balance still needed; do not count it as a second deposit. Before paying, agree the financing condition and what happens to the advance if funding is refused.
The required mortgage deposit must come from your own funds. An employer loan or borrowing from another person is still debt and cannot serve as that deposit; the Bank of Lithuania's credit-provision guidelines explain this restriction. Include state support only after confirming its programme conditions and the lender's requirements.
Does your income support the mortgage you want?
A smaller deposit does not remove the affordability assessment. Since August 2026, the standard payment-to-income test is 50% of sustainable income, using an annual interest rate of at least 6%, even if the offered rate is lower. Other borrowing commitments matter too. The lender decides which income it can recognise and must complete its wider assessment. The Bank of Lithuania's current lending measures explain the standard limits and limited exceptions.
If recognised net monthly income is €3,000, 50% is €1,500. That is an illustration of the ratio, not a guaranteed monthly mortgage allowance: existing debts and the rest of the credit assessment can reduce the amount available. Stable, sufficient income still determines how much can be borrowed.
When another asset must be sold to fund the deposit
Some buyers fund their deposit partly by selling an asset rather than from savings alone. If that asset is real estate—an inherited plot or garden house, for example—its ownership matters to the five-year test. Selling it shortly before the purchase does not erase that history. Ask which deposit category applies before planning around 10%.
The sale timetable and achievable price directly affect your ability to buy. Preparing early and presenting the property well can strengthen negotiations. Elevare Homes specialises in preparing properties for sale and supporting owners through the process, with the aim of achieving a better price and a faster sale without an estate agent's commission. Start preparing before committing to your next home.
If you already own a home and are replacing it, review how to coordinate the sale and next purchase. A lender's home-replacement exception is assessed separately and does not automatically give you a 10% deposit. Calculate what remains after debt, sale costs and tax, and when the money will reach your account. A 30-day sale planning framework helps organise preparation; it does not guarantee a sale within a month.
What to do before your mortgage application
The rules are already in force. These practical preparations can help you understand your position before choosing a property and committing money:
- Review every co-borrower's position. Do all applicants meet the first-home conditions? Expect the lender to ask about this early.
- Build a realistic cash budget. Include the deposit, transaction costs, valuation, insurance and the first monthly payments.
- Contact several lenders. One may accept 10% while another asks for more on the same application.
- Check your credit history. It can materially affect the decision and is best reviewed before the last stage.
- If another asset must be sold, start early. Align both transactions financially and practically.
For help planning the property sale, contact the Elevare Homes team. We can help you understand the market, prepare the home and organise the documents. Review sale tax questions separately with VMI (Lithuania’s State Tax Inspectorate) or a tax adviser where needed before finalising your purchase budget.
Frequently asked questions
When did the 10% first-home mortgage deposit rule take effect?
The updated Bank of Lithuania Responsible Lending Regulations took effect on 1 August 2026. They allow a 10% minimum deposit for qualifying first-home borrowers, replacing the previous general 15% minimum for that category.
Could I qualify if I sold a previous home six years ago?
You may meet the five-year ownership-history condition, but that fact alone does not establish eligibility. The lender must check your prior mortgage history, any other property ownership and every co-borrower. Confirm the assessment date and full eligibility before relying on a 10% deposit.
Can we use a 10% deposit if my spouse owns a home?
If your spouse is a co-borrower, both of you must meet the ownership condition. A co-borrower who owns property or has owned it within the five-year assessment period means the joint application does not meet that condition. The lender must also assess your marital and borrowing circumstances.
What if the bank still asks for more than 10%?
That is possible. A regulatory minimum does not require every lender to offer that deposit. Compare lenders and review your finances, including existing debt and a cash reserve, before applying.
How does the 6% interest-rate stress test work?
The standard test compares debt payments with sustainable income, using an interest rate of at least 6% and a 50% payment-to-income limit. A €170,000 annuity loan over 30 years at 6% costs about €1,019 a month. With €2,500 of recognised monthly income, that payment alone is below €1,250, but other debt and the lender's assessment still matter.
Can I qualify if I own a garden house?
Do not assume so. The Bank of Lithuania's current guidance covers any real estate, not just residential property, and explicitly includes land and garages. Ask the lender to assess the garden house and your complete ownership history.
How do first and second mortgage requirements differ from August 2026?
Qualifying first-home borrowers may have a 10% minimum. A first mortgage where the buyer already owns property generally requires at least 15%; second or subsequent mortgages generally require 30%. A lower deposit may be allowed if more than half the original principal of every existing housing loan has been repaid. A separate home-replacement exception also exists.
Will these changes raise Lithuanian property prices?
A smaller deposit can affect access to financing and demand, but it does not predict the price of a particular home. Interest rates, supply, income and local demand also matter. Do not base your purchase date on a guaranteed increase or fall attributed to this rule alone.
Can the 10% rule apply to both new and older apartments?
Yes. The rule is not restricted to new-build apartments. The borrower's eligibility matters, while the lender separately assesses the property's value, condition and suitability as security.
Can state support or an employer loan fund the deposit?
Borrowed money, including an employer loan, cannot serve as the required deposit from your own funds. Qualifying state support is a separate question governed by the relevant programme and lending arrangement. Confirm any support before including it in your budget; it is not automatically available under the 10% rule.