Hüpoteekiga

Hüpoteekiga is an Estonian term referring to the concept of a mortgage. It is a legal arrangement where a borrower pledges real estate (such as a house or land) as security for a loan. If the borrower fails to repay the loan according to the agreed terms, the lender has the right to seize and sell the property to recover the outstanding debt. This process provides security to the lender, making it possible for individuals and businesses to obtain significant loans for property acquisition or other purposes.

The establishment of a mortgage involves a mortgage agreement, which is a formal contract detailing the loan amount, interest rate, repayment schedule, and the specific property being used as collateral. This agreement is typically registered in the Estonian land registry (kinnistusraamat) to ensure its legal validity and public notice. The registration publicly declares the lender's claim against the property.

Mortgages are most commonly associated with home loans, allowing individuals to purchase a residence without having the full purchase price readily available. However, mortgages can also be used for other types of real estate, including commercial properties, and for purposes other than outright purchase, such as refinancing existing debt or securing a business loan. The terms and conditions of a mortgage are subject to Estonian law, which governs aspects like foreclosure procedures, borrower rights, and lender obligations.