For now, Postanska Stedionica Bank, Raiffeisen and Eurobank have decided to offer loans with a smaller deposit.
Loans for the purchase of the first apartment on credit with a ten percent share are still an exception in the offer of banks, although the National Bank (NBS) provided them last summer. After the state Postanska Stedionica Bank and Raiffeisen Bank, these loans, at least according to the data from the site, were also offered by Eurobank. Although the NBS says that at least five banks have included this relief in their regular offer, a survey conducted by “Politika”, as well as a search of their websites, showed that there are no more than three of them.
In the case of Eurobank, it is interesting that a housing loan with a ten percent share for the first apartment can only be obtained if the client insures it with the National Corporation for Insurance of Housing Loans (NKOSK). If he does not want that insurance, he is left with the regular one with a 20% share. The loan is approved for a maximum of 30 years, and the interest rate is 2.44 percent as the sum of the negative Euribor of 0.5 percent and the margin of 2.97 percent.
Raiffeisen Bank states that they have approved more than 30 such loans.
– Demand for housing loans is generally on the rise. Buying on credit also requires additional costs, so the decision to reduce the participation made it easier for clients to resolve the housing issue, which led to an increase in the number of submitted requests. Also, the fact that in addition to our bank, this model of loan has a very small number of banks on offer speaks in favor of the increased number of requests – they explain in this bank.
The maximum amount is determined by the creditworthiness of the client, ie it is determined in the same way as for loans with a larger share. The repayment period is up to 360 months, and the interest rate is unchanged compared to the standard housing loan model in this bank: it is variable 3.34 percent plus six-month Euribor and fixed from 3.45 to 3.95 percent depending on the loan repayment period.
The NBS says that when it comes to reducing the minimum down payment for the purchase of the first apartment to 10 percent, banks create their products in accordance with the credit policy, product catalog and each client’s own risk assessment.
– At least five banks have included the mentioned relief in their regular offer, so the expectation is that, thanks to the created incentives, the number of those who offer this relief will increase in the next period as well – the central bank states.
They add that since August last year, when the NBS provided concrete relief, there has been an increase in the demand for housing loans. Favorable financing conditions that are the result of easing the monetary policy of the National Bank itself through the reference interest rate and other adopted measures that support sustainable lending to citizens on favorable terms, as well as low interest rates on the money market in the euro zone, also contribute to growth. This growth was certainly influenced by the decision of the National Bank, which refers to the mitigation of requirements regarding the degree of completion of real estate and the reduction of the minimum participation for the purchase of the first apartment. Favorable prospects on the real estate market, ie an increase in supply, also have a positive impact on the demand for housing loans.
A loan for the first apartment with a share of ten percent means less cost for the one who repays it at the beginning, but not in the future. Because, he received a higher monthly annuity, but he also pays interest to the bank on a higher credited amount of 90 percent, which is why such a loan is more expensive in the end. On the example of a loan of 45,000 euros with different participation, with an interest rate of 2.7 percent and a repayment period of 20 years, it can be seen that not only is the monthly installment higher by twenty euros, but also that about 1,400 euros must be paid in interest. In the case of a loan with a larger share, the borrower borrows less money from the bank, less money to pay interest and has a lower monthly annuity. In case he wants to repay the loan early, his position is better, because he owes less to the bank, Politika reports.
