In short
- The bank decides whether an appraiser must visit the property or whether a model based on statistical data is sufficient.
- Refinancing may no longer carry the separate appraisal fee, which currently reaches up to €500.
- The model can be used where market data is sufficient and the result is reliable.
- Banks must comply by the start of 2027 at the latest, but may adopt the new options earlier.
What exactly changes?
| Today | After the change | |
|---|---|---|
| Collateral valuation when refinancing | Usually a new appraisal report with an on-site inspection | The bank decides: on-site appraisal or automated valuation model |
| Cost to the borrower | Appraisal report up to ~€500 | The separate appraisal fee may disappear |
| Speed | Wait for the appraiser's visit and the report | Faster decisions – the model works from data |
| Report format | Full report | A simplified report in some cases, e.g. after a recent thorough valuation |
| Who may use the model | – | Banks and real estate agencies |
„Loyalty is a virtue, but in a services market it should not rest on artificial barriers.“
— Jürgen Ligi, Minister of Finance (translated)
When can an automated valuation model be used?
Model-based valuation is not a universal replacement. The draft sets clear limits:
- Adequate underlying data. The model can be used for properties where suitable base data exists.
- Sufficient local market information. It applies in regions of Estonia with enough transactions for a model-based value to be reliable.
- Bank internal rules. Banks must set detailed rules on when an on-site inspection may be replaced by a model and how valuation quality is ensured.
Timeline
- 4 Mar 2026The Ministry of Finance presents the draft.
- Before 2027Banks may start using the new options early.
- Start of 2027Deadline for banks to bring their practices in line with the new requirements.
What does this mean for borrowers?
- Refinancing may become cheaper and faster. Ask the new bank whether it will use a model-based valuation for your home and whether an appraisal report is needed at all.
- Switching banks gets easier. Only 300–400 home loans move each year – the change aims to remove barriers that keep borrowers with their current bank.
- The decision stays with the bank. Banks are not obliged to use a model; it depends on your property type, location and the bank's internal rules.
- A recent valuation is valuable. If your property was thoroughly valued recently, a new report may be issued in a simplified form.
How Estiq helps you prepare for refinancing
Estiq is itself an automated valuation model built on notarised transaction data from the Estonian Land and Spatial Development Board. An Estiq estimate does not replace the bank's valuation and cannot be submitted to a bank – but before talking to lenders you can see:
Frequently asked questions
Do I still need an appraisal report to refinance my home loan in Estonia?
Not always once the changes apply. The bank decides whether an appraiser must inspect the property or whether an automated valuation model is sufficient. Banks must comply by the start of 2027 at the latest but may do so earlier – so ask your bank.
What is an automated valuation model?
A statistical model that estimates a property's value from comparable transactions and other market data without an on-site inspection. Under the draft it may be used in regions where market information is sufficient and the result is reliable.
How much can I save when refinancing?
You may avoid the separate appraisal fee, which according to the Ministry of Finance can reach up to €500 depending on the property. The process also becomes faster.
Can I submit an Estiq valuation to my bank?
No. The bank uses the valuation method chosen under its own internal rules. Estiq's estimate is indicative and helps you understand your home's value and local transaction activity before speaking to a bank.
Source and note
Estonian Ministry of Finance press release "Kodulaenu tagatise hindamise reeglid muutuvad paindlikumaks", 4 March 2026 (in Estonian). Read the original on fin.ee ↗
This article describes the draft as of March 2026. Final terms may change – check current requirements with your bank. This is not financial or legal advice.