Lithuania mortgage down‑payment policy

On 1 August 2026 the Bank of Lithuania introduced new responsible‑lending rules that cut the minimum down‑payment for first‑time home buyers from 15 % to 10 % of the property value, while keeping the 15 % requirement for subsequent mortgages. The reforms also set a single test that mortgage payments may not exceed 50 % of a borrower’s income and retained a 6 % interest‑rate floor, aiming to improve affordability amid rapidly rising house prices.

A day later, industry experts highlighted that, despite the lower down‑payment threshold, home‑buyers still face substantial hidden costs such as valuations, notary fees, registration and mortgage administration fees. They warned that house prices had jumped 11.9 % year‑on‑year in early 2026, outpacing wage growth and widening the price‑to‑income gap, especially in cities like Vilnius. The commentary underscored that the policy change alone may not resolve the broader affordability pressures in Lithuania’s tight housing market.