The NBS facilitated access to loans for the purchase of the first apartment
At the session of the Executive Board held on June 11th, 2020, the National Bank of Serbia adopted the Decision on Amendments to the Decision on Measures to Preserve and Strengthen the Stability of the Financial System, which created regulatory preconditions for allocating a smaller share required for approval of housing loans to buyers of the first apartment. In accordance with the new regulation, for the purchase of the first residential real estate the bank may grant a natural person a housing loan secured by a mortgage on real estate, provided that it has ensured that the loan amount does not exceed 90% of the value of that real estate (an exception opposed to the general rule when this limit is 80%). Having in mind that the stated limits prescribed for the bank, from the point of view of the borrower usually also represent the basis for the down payment that must be secured for the housing loan, the specific change actually means that mandatory down payment can be reduced to 10% of the required loan amount. Regardless of the fact that banks can still, in accordance with their own estimates, request a larger down payment when approving a housing loan, the expectation from the new regulation is to stimulate competition on the market of housing loans and facilitate citizens’ access to loans for the purchase of the first apartment.
Izvor: BIZLife
Foto: Pixabay
