More than 1,770 applications for housing loans under the Law on the Guarantee Scheme and Interest Subsidies to Support Youth in Purchasing Their First Home have been submitted. Of these, 912 loans have been approved and are awaiting contract signing, while 855 contracts have been signed and loans disbursed, said Olivera Zdravković, Head of the Banking Department at the Ministry of Finance.
The law, effective since March 14, has been successfully implemented, and recent amendments aim to improve the legal framework to expand access to the guarantee scheme for more young people and reduce costs for loan beneficiaries.
Key changes include:
- Expanding the definition of residential property to include auxiliary buildings, allowing loans for properties with such structures, especially in rural areas.
- Allowing banks to accept third-party guarantees under certain conditions to help young people who lack family guarantors.
- Enabling borrowers to offer better collateral after the government guarantee period ends.
- Allowing loans for construction of houses on land with building permits or modular houses within the loan limits.
- Waiving fees for mortgage registration, property title issuance, and notary services related to loans approved under this law, reducing the financial burden on borrowers.
The amendments were accepted in principle by the Parliamentary Committee on Finance and recommended for adoption by the National Assembly, along with other legislative proposals related to state guarantees and infrastructure financing.
