The average mortgage loan amount in Latvia has increased by around 10,000 euros over the past year, according to Citadele Bank.
Data show that in 2025, the average mortgage loan amount in Latvia remained 25–35% lower than in Estonia and Lithuania, mainly due to lower housing prices. In Estonia, particularly in Tallinn, property prices can be up to 60% higher than in central Riga, resulting in significantly larger mortgages.
Latvia’s housing market still offers many lower-priced properties, especially Soviet-era apartment blocks in Riga, which sell for 700–800 euros per square meter—something practically impossible in Vilnius or Tallinn. Transactions in the 40,000–60,000 euros range make up the bulk of Latvia’s housing market.
The average monthly mortgage payment in Latvia is 520 euros, compared to 680 euros in Lithuania and 760 euros in Estonia. However,
the debt burden as a share of income is lighter in Latvia (38.7%) than in Lithuania (46.8%) or Estonia (44.9%).
Falling EURIBOR rates—down by roughly 2% since early 2024—have made borrowing more affordable, especially for bigger purchases like houses or new-build apartments. As a result, borrowers are increasingly choosing larger, more expensive properties, with loan amounts often exceeding 100,000 euros and sometimes reaching 200,000 euros.
For example, a new 100,000 euros loan over 30 years now costs around 405 euros per month, down 28% from 519 euros. This trend applies across all Baltic states, easing household budgets and broadening housing choices.
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