Coop Pank offers low-cost mortgages to national defence and rescue workers

Text Susanna Poikela
Photo Coop Pank

Coop Bank is now offering low-cost mortgages for people working in the field of internal security and national defence. The loan is called “Kodukaitsja” (Kodukaitsja means home security forces in English) and has an interest rate starting from 1.49 per cent plus the six-month Euribor.

Normally in Estonia, the interest rates on mortgages granted by banks are high. According to statistics published by the Bank of Estonia in July 2024, the average interest rate on new secured mortgages granted to households was 5.27 per cent. 

Coop Bank’s Kodukaitsja loan has no contractual fee and early repayment is free. In addition, the bank covers the cost of credit insurance up to 100 euros in the first year, which provides additional protection in the event of, for example, prolonged illness or job loss.

All home loan borrowers can repay the mortgage according to a personal repayment schedule, i.e. for the first two years they can defer payments entirely or pay only the interest. Choosing a personalised schedule helps reduce monthly payments at the beginning of the loan period, making it easier to buy and furnish a home.

Karin Ossipova, Coop Bank’s Head of Mortgages, said that offering mortgages on favourable terms to police officers, rescue personnel, volunteer rescue workers, border guards, military personnel and members of the Defence League is in line with the Bank’s values and commitment to supporting the successful functioning and development of Estonian society.

“Police officers, rescue workers, military personnel and members of the Defence League play a key role in ensuring Estonia’s security, but finding housing for them can be challenging. Coop Bank wants to offer them better loan conditions so that all our defenders can get the home they and their families deserve” Ossipova says.

For first-time homebuyers and veterans, guarantees are offered by companies such as EIS (formerly KredEx), which significantly reduces the down payment required by banks. “The most popular are guarantees for young professionals, young families and large families. In addition, EIS offers a mortgage guarantee for veterans of the Defence Forces and the Defence League who have participated in operations abroad or have been injured while serving in Estonia. Support is also provided for national defenders in remote areas,” said Ms Ossipova.

Since 2024, Coop Bank also offer teachers in Estonia a low-cost mortgage loan. Last year, every tenth new Coop Bank mortgage contract was signed with a primary school or kindergarten teacher.

Coop Bank is one of five banks operating in Estonia. It has 209,500 customers in Estonia. The bank’s owner is the domestic retail chain Coop Eesti, which has 320 stores.

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