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There is a highly competitive mortgage market with numerous foreign banks operating in Serbia .The 70-100% mortgage for the local market is now in place.
The following is an example of loan available in Serbia
Conditions:
- Repayment period: up to 25 years
- Insurance of loan: 1.5% do 3.5% for registered properties (up to 4% for unregistered properties)
- Down payment: 0%-10% of loan value
- Administrative cost: 0.5%
- Minimum loan amount: up to 10,000 Euros
Interest rate:
1. For loans with fixed interest rate:
- NIR for bank's loan: 7.50% to 7.90%
- EIR: 7.94% to 8.54%
2. For loans with variable interest rate:
- NIR for bank's loan: 3.95% to 4.45% + six month value of EURIBOR
- EIR for unregistered: 5.18% do 5.88%
Example of loan from bank's fund with fixed interest rate, in euros, on 25 years:
|
Property value
|
Participation 10%
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Loan amount
|
Joined income
|
Installment
|
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30,000
|
3,000
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27,000
|
403
|
201
|
|
50,000
|
5,000
|
45,000
|
671
|
336
|
In examples above EIR is 7.94%
Example of loan from bank's fund with variable interest rate, in Euros, on 25 years:
|
Property value
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Participation 10%
|
Loan amount
|
Joined income
|
Installment
|
|
30,000
|
3,000
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27,000
|
316
|
158
|
|
50,000
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5,000
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45,000
|
527
|
263
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In examples above EIR is 5.18%
Loan collaterals:
Transfer limitation of life and real estate insurance policy
Bill of exchange and Bill of exchange letter
Real estate mortgage of first order
Note:
Loan with fixed interest rate is not related to EURIBOR value nor the business policy of the Bank, which enable the interest rate to remain the same during whole payment period and enable you to better plan your future.
The Belgrade Parliament building
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