Mortgage Loans in Albania

Current situation with mortgage loans in Albania!

With the decrease in the interest rates and  in the immovable property prices as well mortgage loans offered by the banks has shown also decline in interest. This situation is making them more and more attractive to clients. Although the construction sector in Albania is not showing good performance indicators, we may say that is booming season in loans offered by banks.  Of course the system follows difficulties because of the high NPL ratio, and the difficulty of finding good potential customer but the time is for the lowest rate loan for buying a mortgage.

In order for you to refer more easily please find below the links of the loans, offered by each bank. If you don’t see your bank most probably is not having any information on their website or is not offering an house loan. Please advise us if you think that we should add something. The below list will help you compare mortgage loans among banks and find the best loan for you.

1. Raiffeisen Bank Housing Loan

2. BKT Bank Happy house loan

3. Alpha Bank housing loan with mortgage. [Edit- Ended! But cash collateral loan still applicable]

4. Societe Generale Albania

5. Tirana Bank – The fastetest way to your house

6. Fibank Albania – Housing loan with 3.9%

7. Unioni Bank (Leaflet)

8. NBG Bank Albania – Housing Loan

(For Albanian Click Here)

 

1.Raiffeisen Bank Housing Loan

4. Societe Generale Albania

  • Maximum Amount: up to 500,000 Euro (not more than 75% of the investment value)
  • Maturity: up to 20 years
  • Currency: ALL, EURO, USD
  • Interest Rate:
    – ALL:  TB  min 5.5% during the first year; after TB + 2%, min 5.5%
    -Euro:  fix 5.5% during the first year; after Euribor + 4.5%, min 5.5%
    – USD: fix 7.5% during the first year; after Libor + 4.5%, min 7.5%
  • Payment Method: the principal and the interest will be paid in equal monthly installment
  • Penalty: In case of installment payment in Delay, the bank will apply a penalty, only for the unpaid amount, in line with the Terms and Conditions in effect.
  • Collateral: the bank accepts as collateral for this loan
    – A real estate mortgage with 130% coverage, or
    – Cash collateral with 110% coverage.
  • Other securities:
    – A co-borrower is required in any case
    – Life and Property Insurance with coverage 110% of the loan.

For more information or to apply for a loan please consult one of our branches all over Albania.

5. Intesa SanPaolo Bank Albania

Housing LoansIt’s time for your own home! With Tirana Bank Mortgage Housing Loans now you can because we offer:

  • Fixed interest rate 3% in ALL and EUR for the first year
  • Fast preapproval process

Buy or construct your own house now! This offer is valid from August to October 2014!

I. Home Purchase Loan

Loan Amount:

  • Min. 5.000 EUR (equivalent in ALL)
  • Max. 150.000 EUR (equivalent in ALL)

Financed limit:

Up to 70% of the financed property.

Interest Rate:

  •  3% fix for the first year for both currencies, Euro & ALL, and after:

ALL:  Tribor 12m + 2% (min 6%) for Standard Customers

ALL:  Tribor 12m + 1.8% (min 5.5%) for Payroll Customers

EUR:   Euribor 12m + 5.5% (min 5.5%) for Standard and Payroll Customers

 

Loan Duration

From 5 – 25 Years

Repayment method

Monthly instalments (principal+ interest)

Collateral:

The properties that will be used as collaterals should be always residential houses.

Documentation

  • Copy of the ID card or the passport
  • Family certificate issued in the last 3 months
  • Official Payment Slip or if self-employed: Copy of the business license, Tax/Return/Tax declaration/Official Monthly or Yearly Certificate.
  • Mortgage Deed.

Bank reserves the right to request additional information if necessary.

II. Home Construction Loan

Loan Amount:

  • Min. 8.000 EUR (equivalent in ALL)
  • Max. 150.000 EUR (equivalent in ALL)

Financed limit

Up to 70% of the constructed home value.

Interest Rate:

  • 3% fix for the first year for both currencies, Euro & ALL, and after:

ALL:  Tribor 12m + 2% (min 6%) for Standard Customers

ALL:  Tribor 12m + 1.8% (min 5.5%) for Payroll Customers

EUR:  Euribor 12m + 5.5% (min 5.5%) for Standard and Payroll Customers

Loan Duration

From 5 – 25 Years

Repayment method

Monthly instalments (principal+ interest)

Collateral

The properties that will be used as collaterals should be always residential houses.

Documentation

  • Copy of the ID card or the passport
  • Family certificate issued in the last 3 months
  • Official Payment Slip or if self-employed: Copy of the business license, Tax/Return/Tax declaration/Official Monthly or Yearly Certificate.
  • Mortgage Deed.
  • Construction project and costs financial project.

Bank reserves the right to request additional information if necessary.

Note: Loan for purchase or construction is offered in ALL / EUR currency.

III. Home Improvement Loan

Individuals aged 18 – 65 (until the maturation) can apply.

Amount: Min. 1.000.000 ALL – Max. 10.000.000 ALL

Limit of financed: Up to 50% of the collateral value

Loan duration: Up to 10 years

Collateral: The house that will be reconstructed or another residential house mortgage that meets the criteria.

Currency: ALL

Interest Rate:

5% fixed for the first year

After that  Tribor (12M) + 2.5% (Minimum 6.5%) for Standard Customers

Tribor (12M) + 2.3% (Minimum 6.5%) for Payroll Customers

Term and Conditions for Retail Loans

 

6. Fibank  Albania

Mortgage Loan “5 Stars”

WHEN YOU NEED FUNDS NOW BUT WILL BE ABLE TO REPAY EARLIER, USE YOUR PROPERTY AND TAKE A LOAN FROM US!

Mortgage Loan “5 Stars” gives you the advantage to:

Finance every necessity that you may have:

  • Buy a new immovable property – apartment, house, shop, land
  • Reconstruct an existing immovable property
  • Cover unexpected expenses
  • Buy a movable property – car, furniture, home appliances
  • Refinance an obligation in another financial institution

At the most preferential terms:

  • Fixed interest rate for the first year: 3.90% in EUR and 3.90% in ALL
  • 0% early repayment fee
  • Bonus credit card with a limit 500 EUR or equivalent in ALL
  • Unlimited financing
  • The longest term in the market
  • The lowest monthly installment
  • Equal monthly installments for efficient planning of your monthly budget

Parameters of the product:

Maximum loan amount No limits
Currency EUR, ALL
Maximum tenure 360 months
% of lending 75% of the market valuation of the property set as collateral
Collateral Real estate property in administrative building or residential building, located in the main cities where FIBANK is present
Annual Interest Rate EUR

  • Period 1 (first 12 months): 3.90% fixed
  • Period 2 (remaining up to 348 months): EURIBOR12M + 5.50%

ALL

  • Period 1 (first 12 months): 3.90% fixed
  • Period 2 (remaining up to 348 months): TBILLS12M + 3%, not less than 6.40%
Repayment
  • Equal monthly installments during period 1
  • Equal monthly installments during period 2
Bonus Credit card VISA CLASSIC with a pre-approved limit 500 EUR or equivalent in ALL
Loan Application 30 Eur for a loan below 3 000 000 ALL; 50 Eur for a loan above 3 000 000 ALL, applied when the loan is disbursed
Management fee 1.50% calculated over the amount disbursed only once at the time of disbursement
Early repayment Fee 0%,
Renegotiation Fee 1.50% for changes in collateral, interest rate, term calculated over the outstanding balance at the moment of renegotiation
Evaluation Report Paid by the Borrower
Insurance of the property Paid by the Borrower

 

8. NBG Bank Albania

Housing Loan

What is a housing loan? 

It is a loan given to individuals for purchasing an appartment/house leaving as a collateral the real estate that will be financed and/or another real estate offered

by the third parties.

Through the mortgage loan you can have finally your dreamed home with very small monthly installments. This loan can be used for purchasing a flat/house for residence purposes.

CHOOSE NOW to buy your home! CHOOSE also the monthly installment that suits you with an interest rate from only 4.50% in Lek !

The new offer from mortgage experts in NBG Bank Albania!

Product Characteristics:

  • Mortgage Amount:5000 – 250,000 Euro / the equivalent in Lek
  • Currency:Lek
  • Mortgage Maturity: 5 – 30 years
  • Interest

Currency

Mortgage Maturity

Content

ALL

 

5-30 years

4,50% fixed rate for the first year

After the first year:

BTH 12M + 3,50%, Min 6,00%

Euro

5-25 years

5.5% fixed rate for the first year

After the first year:

Euribor 12M + 5%, Min 6%

  •  Example

Currency

Mortgage Maturity

Content

ALL 2.500.000

30 years

 ALL 12.700

After the first year:

15.000

Euro 20.000

25 years

EUR 123

After the first year:

EUR 129

Security:

Mortgage collateral of the property to be purchased or of another real estate property

Benefits:

  • Low Monthly Installments
  • Competitive Interest Rates
  • Maturity Repayment Period up to 30 Years !!

Documentation:

  • Identification documents for the borrowers and for the garantors
  • Family Certificate
  • Income Documentation for the Borrowers and for the Garantors
  • Title  Deeds for Real Estate Property
  • Documents for Property to be Purchased
  • Regulatory Documents

For more information, come to one of our branches to meet with our mortgage experts !

Click here to download the Transparency Form:

For additional information and professional advice, please contact the nearest branch of NBG Bank of Albania.

Click here to download the Housing Loan Conditions:

 

What can I do when I can’t repay my loan?

What can I do when I can’t repay my loan?  Loan restructuring guide from BOA – October 2013
(For Albanian click here)

What is the restructuring of loans ?

Restructuring the loan , in simple terms means an agreement between the bank and the borrower for the new conditions , especially in periods when the borrower is in trouble for repayment of the loan .

According descriptions BoA loan restructuring .

a) ” loan restructuring ” – is facilitating / s that the bank makes to the borrower / s due to their financial difficulties caused by economic or legal reasons , which are not made by the bank in any other case and generally include :
i) relief in terms of credit made ​​by changing one or more terms of the contract (including changing product and capitalization of interest ) , which primarily relate to the term , the principal ( the principal ) and interest rate ;
ii ) making ( use ) of collateral or other assets for partial repayment of the loan ;
iii ) replacement of the original borrower or the inclusion of an additional borrower .

Practically loan restructuring banks in Albania , is in many ways such as :
– The delay that results in creating change easily installment loan payer ,
– The creation of a free period which means postponing the payment of installments ( not necessarily delay the calculation of commissions and interests therein ) ,
– Stay in a more recent period of arrears, commissions ( usually when these constitute a large and create a heavy burden for the borrower )
– Additional or making contract to co borrowers or guarantors young
– Other requirements .

Ners for mortgage loans , taken several other measures as :

– “Moratorium” given additional time to borrowers ( see below ) .
– Voluntary sale
– One of the items mentioned above which are more valid for consumer loans . ( and occasionally apply for mortgage loans )
” Moratorium ” – is a temporary suspension of legal action against the other party .

Theoretical principle of restructuring : Restructuring the loan is not a compromise but an obligation . This principle means that the bank is not obliged to restructure the loan as long as there is an agreement between the parties , but the restructuring of the loan is usually carried out by the parties to agree to such a compromise to achieve the benefits from both sides .

Bank of Albania is helping banks in Albania with the publication of two manuals ( one for individuals and one for businesses ) who provide primarily as should be the principles of restructuring .

If you have any questions or comments do not hesitate to write to us info@bankieri.com

Publication of the full BOA site :

http://www.bankofalbania.org/web/pub/udhezim_per_ristrukturimin_e_kredive_te_biznesit_6151_1.pdf

http://www.bankofalbania.org/web/pub/udhezuesi_per_individet_2013_6149_1.pdf