EIKA seeks to reduce the uncertainty currently dominating the real estate market by launching a financial security programme, which will offer two new proposals to clients: the “Mortgage repayment guarantee”, where EIKA will cover the loan repayments and interest for a defined period of time should a client become unemployed, and the “Changed conditions guarantee”, which will give a possibility to terminate a preliminary sales contract after three months without any sanctions.
The financial security programme was designed by EIKA in response to the uncertainty caused by the COVID-19 pandemic, which encompasses people’s incomes, jobs, personal and global economic prospects. “We understand that the purchase of home is one of the biggest financial commitments one can make. Hence, we want to make sure that the pandemic does not ruin the plans of our potential clients to settle into their new homes and feel obliged to ensure that they would remain financially secure. As such, we want to create the financial tools for sustainable cooperation and customers’ reassurance in the future,” Martynas Žibūda, director of development at EIKA, states.
Based on a survey conducted by EIKA in April, the market slowdown is mostly caused by the circumstances not directly related to potential customers: uncertainty caused by the lockdown, changed financing conditions and reduced level of income.
According to M. Žibūda, through evaluating the situation of potential clients, we are offering two products – the “Mortgage repayment guarantee” and the “Changed conditions guarantee”, which are best matching the circumstances mentioned above. The first product, “Mortgage repayment guarantee”, ensures that if within a year of purchasing an EIKA apartment the client were to lose their employment, EIKA will cover the loan and interest payments to the bank for six months, until the client enters employment again. The guarantee applies for finished apartments purchased with a notarial contract. The maximum covered monthly payment ranges from 300 to 500 EUR, depending on the value of the property purchased. In the case of repayment, EIKA will also cover their clients’ personal income tax.
The second product ,“Changed conditions guarantee”, provides an opportunity to terminate a preliminary home purchase-sale contract and receive the full deposit back within three months of signing the contract. The customers will be able to make a use of this right within three months without any further conditions and will receive their full paid deposit. This will apply to the apartments in unfinished buildings purchased with no less than three months remaining to the notarial contract. The deposit for a preliminary purchase-sales contract is 2,000 EUR.
“We understand that the COVID-19 pandemic has led to a great deal of uncertainty regarding income stability, bank financing conditions, the economic situation in Lithuania and globally. As such, we are seeking solutions, which would offer our clients more freedom to act and help them feel more financially secure,” the EIKA representative said.
Both offers apply to new agreements.