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🇪🇪Estonia mortgage rates

The average interest rate on new mortgages in Estonia was 4.26% in August 2026. It rose from 4.25% the previous month. A year earlier it was 3.78%. Over the period shown it has ranged from 2.04% to 6.32%. That is 0.66 percentage points above the euro-area average of 3.60% — the 2nd of 21 member states that report it.

Mortgage rate · Estonia
4.26%
vs prev
▲ 0.01 pp
Estonia mortgage rate, last 10 years
Source: ECB (MIR) · data through August 2026 · updated 2026-10-05 · modifications: none

What this rate is

  • The average interest rate that banks in Estonia agreed with households on new loans for house purchase in August 2026, weighted by loan volume across all initial rate fixation periods, from floating to fixed for over ten years.
  • It includes renegotiated loans and excludes fees and other charges.
  • The ECB publishes it on the 23rd working day after the month ends.
  • It is not a rate you can be offered today, not a 10-year fixed rate and not what existing borrowers pay.
How the ECB compiles these statistics →

See the full mortgage rate ranking across all euro-area countries →

Mortgage rates and the ECB

In August 2026 the ECB deposit facility rate was 2.25%; the average rate on new mortgages was 2.01 percentage points above it. The 10-year government bond yield for Estonia was 3.83% in the same month.

The ECB has since set the deposit facility rate at 2.50%, effective 16 September 2026; this figure does not yet reflect that change.

From its low of 2.04% (February 2022) to its peak of 6.32% (October 2023), the average rate on new mortgages in Estonia rose 4.28 percentage points. Over the same cycle the ECB raised its deposit facility rate from -0.50% to 4.00% (July 2022 to September 2023).

The ECB does not set mortgage rates: banks do. The ECB collects these statistics to track how its policy reaches borrowers.

In August 2026, 98.0% of new mortgage lending in Estonia was at a floating rate or fixed for up to one year; the rest was fixed for longer. Euro-area average: 16.6%. Most new mortgages here are variable-rate, so ECB decisions pass through faster than in fixed-rate markets.

ECB rate decision →

Estonia mortgage rate — frequently asked questions

What is the average mortgage rate in Estonia?
4.26% in August 2026: the average rate banks agreed with households on new home loans, across all fixation periods.
Is this the mortgage rate I would be offered today?
No. It is an average of rates already agreed in August 2026, published about five weeks after that month ended. Offers depend on the bank, the fixation period and the borrower, and advertised rates can differ from agreed ones.
Are mortgage rates in Estonia rising or falling?
It rose from 4.25% to 4.26% in the latest reading (August 2026). A year earlier it was 3.78%.
Are mortgages in Estonia mostly fixed or variable?
In August 2026, 98.0% of new mortgage lending in Estonia was at a floating rate or fixed for up to one year; the rest was fixed for longer. Euro-area average: 16.6%. Most new mortgages here are variable-rate, so ECB decisions pass through faster than in fixed-rate markets.
How do ECB interest rate decisions affect mortgage rates in Estonia?
From its low of 2.04% (February 2022) to its peak of 6.32% (October 2023), the average rate on new mortgages in Estonia rose 4.28 percentage points. Over the same cycle the ECB raised its deposit facility rate from -0.50% to 4.00% (July 2022 to September 2023). In August 2026 the ECB deposit facility rate was 2.25%; the average rate on new mortgages was 2.01 percentage points above it. The ECB has since set the deposit facility rate at 2.50%, effective 16 September 2026; this figure does not yet reflect that change.
How do mortgage rates in Estonia compare with the euro area?
It is the 2nd-highest of 21 euro-area members that report it, against a euro-area average of 3.60%.

Estonia — more indicators

Mortgage rate in other countries