From August 1, 2026, the minimum down payment for first-time home buyers in Lithuania will decrease from 15 to 10 percent. This could provide more opportunities for residents for whom the biggest obstacle until now was not income, but the accumulated amount for the down payment.
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However, loan experts emphasize: a smaller down payment does not mean that getting a loan will be easy for everyone. Banks will continue to assess the client’s income, its sustainability, existing obligations, credit history, and ability to pay loan installments.
According to Lukas Sarachanovas, founder of licensed loan broker “Finex”, this change is important, but it should not be considered an automatic guarantee of obtaining financing.
“A 10 percent down payment is good news for first-time home buyers. For some people, the biggest obstacle until now was not their income, but the need to accumulate a larger amount of their own funds. However, banks’ assessment will remain strict and individual,” says L. Sarachanovas.
In other words, a 10 percent down payment is only one part of the loan equation. It is important for the bank not only whether the buyer has the required amount of own funds, but also whether their income is sustainable, whether their obligations are not too high, whether their credit history is in order, and whether the future monthly installment remains secure in the long term.
A smaller down payment will not help everyone equally
If previously buying a home worth 200 thousand euros required at least 30 thousand euros for a down payment, from August, a first-time home buyer could theoretically need only 20 thousand euros. This is a significant difference for young buyers, families, and residents with stable incomes but who have not yet accumulated larger capital.
However, the smaller the down payment, the larger the loan amount and the higher the monthly installment. Therefore, banks will assess even more carefully whether the client can safely undertake such an obligation not only today but also in the long term.
“A person may have the required 10 percent down payment, but if their income, obligations, or credit history do not withstand the bank’s assessment, a smaller down payment alone will not be enough. Therefore, for some buyers, this change will be a real opportunity, while for others, it will be a signal that they need to prepare better,” comments the founder of “Finex”.
Banks may assess the same client differently
One of the most common mistakes is the belief that all banks assess a client equally. In practice, this is not the case. Different financial institutions view income type, length of service, work abroad, individual activity, additional income, or family financial situation differently.
“A bank assesses not only the number in the account but the client’s entire financial profile. Sometimes a person who receives a worse offer from one bank thinks that this is the final answer. However, another bank may view the same situation much more favorably. This is where the broker’s value is revealed – to help the client understand where their situation can be assessed most strongly and to seek the most favorable, realistically achievable financing conditions,” says L. Sarachanovas.
Prepared clients will get the best conditions
According to L. Sarachanovas, a smaller down payment may encourage more people to start looking for a home, but those who assess their financing options before choosing a specific property will be in the strongest position.
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A common mistake is to first find the desired property, agree on the price, or even pay an advance, and only then start figuring out under what conditions banks could finance the transaction. In such a case, the buyer often loses negotiating freedom.
“The strongest client is one who comes prepared. They know their real capabilities, understand what monthly installment they can safely pay, and are not dependent on one bank’s answer,” states L. Sarachanovas.
The broker’s role is becoming increasingly important
As the financing process becomes more complex, the role of a loan broker is no longer just about submitting documents to the bank. Increasingly, it becomes strategic work – assessing the client’s situation, understanding which banks might evaluate it most favorably, helping prepare the application, and comparing different offers.
“Finex” helps private and business clients prepare for the financing process, evaluate offers from different financial institutions, and choose the most suitable financing solution for their situation.
“Our goal is not just to help a person get a loan. The most important thing is that the client makes a financially sound decision. Sometimes this means negotiating for better terms, sometimes choosing another bank, and sometimes saying that it is worth strengthening one’s financial situation before borrowing,” says L. Sarachanovas.
What is worth doing before August 1?
First-time home buyers who want to take advantage of the lower down payment opportunity should not wait until the last day. Even before the change comes into effect, it is useful to assess income, existing obligations, credit history, the possible loan amount, and the actual monthly installment.
A smaller down payment can become an important opportunity, but it will bring the greatest benefit to those who view the loan process not as a formality, but as one of the most important financial decisions in life.
An individual assessment of the situation before applying to banks can help to understand real financing opportunities more clearly, compare possible scenarios, and avoid hasty decisions.
About “Finex”
“Finex” is a licensed loan broker that helps both private and business clients find the most suitable financing solutions. The company consults on home loans, consumer loans, car and home leasing, refinancing, business credits, and other financing issues.
Clients are helped to prepare for the financing process, compare offers from different banks, and seek the most favorable, realistically achievable conditions.
Those who wish to assess their capabilities before applying to banks can visit finex.lt and fill out an application for a free preliminary assessment.
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