Loans with 10% Down Payment in Serbia: Who Can Get Them and Under What Conditions
Housing loans with a minimum down payment of 10% have become an attractive option for anyone who wants to solve their housing problem with a lower initial cost. However, before you decide on this option, it is important to understand who is eligible for this type of loan, which banks offer it, what the conditions are, as well as what the advantages and disadvantages are.
Who can get a loan with a 10% down payment?
In Serbia, loans with a 10% down payment are most often available to:
First-time home buyers – Those who are buying a property for the first time can get this type of loan. In June 2020, the NBS made a recommendation that first-time home buyers be granted a 10% down payment
Young married couples – Banks often offer special benefits to young couples who decide to buy their first home together.
Beneficiaries of state subsidies – If the state participates in the subsidy, you can take advantage of the benefits of this financing model.
Conditions for obtaining a loan with a 10% down payment
To obtain this type of loan, you need to meet the following conditions:
Creditworthiness – Banks will check your income, length of service and total monthly obligations.
Stable source of income – Most often, you need to be employed for an indefinite period or have a registered company in the case of self-employed entrepreneurs.
Positive credit history – If you have no debts or delays in paying the loan, your chances of approval are higher.
Age limit – Loans are most often approved for people up to 65 years of age at the end of the repayment period, and they must not be younger than 18 years old
Advantages of a loan with a 10% down payment
Smaller initial investment – Instead of a large down payment, you only need to set aside 10% of the value of the property.
Faster purchase realization – Buying a property becomes more accessible without having to save for a down payment for many years.
Favorable loan terms – These loans are often associated with more favorable interest rates and longer repayment terms.
Flexibility in planning expenses – You can invest the remaining funds in furnishing your apartment or other needs.
Disadvantages of loans with a 10% down payment
Higher monthly installments – Due to a smaller down payment, the loan amount is higher, which means higher monthly obligations.
Longer repayment – In order to reduce monthly installments, you may decide on a longer repayment period, which increases the total cost of the loan.
Potential additional costs - Additional costs such as insurance or taxes are possible that can accumulate during the loan repayment.
Which banks in Serbia offer loans with a 10% down payment?
In Serbia, only a certain number of banks offer such loans, including:
AIK banka - offers the possibility of purchasing an apartment in either a new or old building
Raiffeisen banka - Provides housing loans with a 10% down payment with flexible repayment terms.
Eurobank Direct - with insurance at NOKS
NLB - for loans up to 100,000 Euros
OTP Bank - Especially suitable for first-time real estate buyers.
Postal - These loans are intended for individuals who want to buy their first residential property, including houses, apartments and parts of residential buildings, as well as garages and land with a building permit for building a house.
How to get a loan with a 10% down payment?
The process begins with choosing the ideal property, and our team at the real estate agency can help you in this search. After that:
Check your creditworthiness - Visit the bank with all the necessary documents.
Collect documentation - Includes proof of income, employment contract, and documents related to the property.
Submit an application - After approval, you sign a contract with the bank and can make the purchase.
Loans with a 10% down payment are an ideal solution for those who want to buy property with a smaller initial amount. Although there are pros and cons, with the right bank selection and planning, this option can allow you to quickly and easily get to your home. Our agency is here to guide you through the process, from choosing a property to working with banks that offer these benefits.
Contact us and start your journey to a new home today!
