A loan more profitable than a lease is a monthly installment, and is generally the same or even less than the cost of renting a property.
Interest on home loans is still low, as the euro area borrowing rate remains negative and currently stands at minus 0.38 percent, so banks can boast about thirty percent more of these loans than last year.
In 2019, the National Home Loan Insurance Corporation (NKOSK) secured nearly 8,000 home loans. The number of approved loans for the roof overhead is certainly higher, as banks are now granting them without this insurance. Otherwise, since its inception, the NKOSK has provided 100,259 such loans.
Home loans approved in local currency are only shyly approved and according to the NKOSK, they have secured 34 such loans, which is at the level of statistical error.
If it were not for the NKOSK, there would be no precise information on how many clients have a problem with repaying the loan. According to their data, 813 clients do not repay the loan regularly and their loans are declared due, which means that NKOSK continued to pay its banks monthly debts. 477 properties were forcibly sold.
A short survey by banks showed that, on average, citizens borrow less, because the average amount of a home loan granted is 40,000-45,000 euros. This means that the amount credited is 20 percent lower than the amount required to participate.
Intesa Bank says that in 2019, they also achieved a significant increase in housing loans. During the first 11 months of 2019, the bank realized 150 million euros in housing loans, an increase of 36 percent compared to the same period last year. They approve home loans at an annual interest rate of 2.47 percent and 2.89 percent, respectively, plus a three-month Euribor. The effective interest rate is 3.04 percent, with no loan maintenance fee and no mandatory life insurance premium. The average amount of home loan granted in their case is 45,000 euros, with a minimum contribution of 20 percent.
Erste Bank says last year continued strong interest from clients for home loans. Approximately 2,200 home loans were approved, the average amount was about 45,500 euros, up for 1,700 euros from last year.
– Interest rates are still low, and the variable effective interest rate on home loans in euros ranges from 3.31 percent. We also offer a RSD home loan with a fixed interest rate, with which our clients are insured against currency clause risk or change in the value of Belibor. With a repayment period of 10 years, the effective interest rate for this loan is 5.75 percent. In addition, the initial costs, which can amount to several thousand euros, are minimized. Clients do not have insurance costs with NKOSK, they do not pay for loan processing, nor are there costs for maintaining loans, while life insurance is optional – they say at this bank.
Commercial Bank approved about 30 percent more housing loans compared to the previous year. The average amount of housing loan realized in 2019 is about 40,000 euros, which is an approximate average of the amount of housing loan realized in 2018 as well, reports Politika.
