New mortgage loans in Serbia - downpayment of 5%, repayment period of 30 years

Starting November 20, subvented mortgage loans, on which all those younger than 45 can count, will be approved with the downpayment of 5%, instead of former 10% of the credit amount, while the repayment period will be prolonged from 25 to 30 years.

This was pointed out on the occasion of the contract signing between Banca Intesa and National Corporation for Insurance of Mortgage Loans, as well as the Ministry of Finance, by the retired Minister of Finance Mlađan Dinkić.

The composite interest rate on credits will amount to about 4%, so that Serbia equalized with Canada, from which the model of mortgage loan subsidizing was taken, and this interest rate is lower than in most of the countries of EU.

For those employed in the government administration and public services who will be able to apply for the procurement of apartments financed from the means of the National Investment Plan on November 15, the minimal downpayment will amount to 10%, whereas the credit repayment period will amount to 25 years.

For all other users of the mortgage loans who are insured in the National Corporation, the present downpayment of 20% has been cut in half.

Banca Intesa included mortgage loans in its offer in May 2006 and, so far, it has approved about 500 credits in total amount of 20m EUR.