In January, the added interest rate on mortgage loans in Latvia saw a reduction for 370 loans, according to a report from the Latvijas Bank. Since the beginning of 2025, the overall number of loans benefiting from this interest reduction has reached 11,875. This change reflects a significant trend in the mortgage market, contributing to a decrease in financial burdens for borrowers amidst changing economic conditions.

As of January 2026, the number of instances where existing lenders reduced the added rates stands at 327, while an additional 43 borrowers opted for refinancing. The total outstanding balance for loans affected by these rate reductions is approximately 25 million euros, which constitutes about 0.5% of Latvia's mortgage loan portfolio. Since early 2025, the accumulated total for these loans has reached 860 million euros, accounting for over 18% of the initial loan portfolio, suggesting an influential shift in lending practices within the market.

Borrowers who experienced a reduction in rates from their existing lenders benefited from an average decrease of nearly 0.5 percentage points, while those who refinanced saw reductions of approximately 0.7 to 0.8 percentage points. This adjustment has allowed mortgage borrowers to save about 350 euros to 500 euros per year on interest payments. Overall, the total savings in payments since the beginning of 2025 amounts to four million euros, highlighting the positive impact of these rate reductions on borrowers' financial situations in Latvia.