With the Help of the FinTech Company DMC, Housing Loans are Becoming More Accessible to Latvia’s Re-emigrants
Finding a place to live is a crucial issue for multiple thousands of people who move back to Latvia every year. In cases when they are ready to purchase a property, a mortgage is not accessible at once, because most lenders are not keen on issuing loans to people who get their income abroad or in a different currency. With the new FinTech company Direct Mortgage Capital (DMC) coming into the market, housing loans are becoming more accessible.
When considering the options to return to live in Latvia, finding a place to live is as important as it is to find a job. Compared to the huge number of people leaving Latvia, data collected by the Central Statistical Bureau on the several thousands who return to Latvia is lost. Yet, in the year of 2017 those were almost 10 000, with 4780 of them being Latvian citizens. It is a whole group of society that needs help to integrate in the society, including providing housing.
Among those who arrive, there are a lot of people in the working age, specialists of highly useful professions, people with savings. A lot of them would much rather buy housing than rent it. Unfortunately, the current mortgage policies are not supportive of this society group. The principles on which the ability to pay is evaluated is outdated and doesn’t apply to the current situation.
The requirement of having an income in Latvia for at least 6 months, or the income being in euros, a higher down payment, the inability to review income and credit history acquired in a foreign country – this is the reality that these people face when trying to apply for a mortgage in Latvia. In addition, not only the people arriving to Latvia face these problems. An IT specialist, who lives in Latvia, but remotely works in a foreign company. A man who works abroad, yet his family lives in Latvia and he wants his home here. These are only a few examples. A modern lender has to be able to think over the borders and has to support different family and income models,” says company representative, Una Kosīte.
Direct Mortgage Capital is a new FinTech company established in Latvia, launched at the end of last year. The company’s generated mortgage lending platform allows the borrower to check how much they will be able to afford in just a few minutes and receive a loan pre-approval. Combining technologies with modern home-loan programs, the speed of reviewing an application becomes much higher, and the loans – more accessible to wider groups of society.
“Being a FinTech gives us the advantage to look at the mortgage industry with a fresh view. By putting our focus on the customers, we see that their needs, lifestyle and employment patterns are changing. This is why a new approach to mortgages is also necessary. The DMC platform is very new; however, we already work with typical bank clients, self-employed people, and, people who work abroad. Our customers value the speed provided by the technologies, competitive interest rates and knowledgeable credit specialists,” adds Una Kosīte.
More information about Direct Mortgage Capital, housing loans and loan terms can be found here www.dmcbonds.com