Flexi Mortgage Loan

During the repayment period of a mortgage loan, interest rates may change because of fluctuations in Treasury Bill, leading to different payments each year and often creating financial difficulties when these rates increase. To offer you stability and security, BKT introduces the Flexi Mortgage Loan, a solution that allows you to set your monthly installment in the first year and keep it unchanged throughout the entire loan period.

In case of changes in interest rates, the loan maturity is automatically adjusted, ensuring that your installment remains the same. This product offers you flexibility and protection against market fluctuations, providing financial predictability and ease in planning your budget.

Example 1:
Increase of Treasury Bond by 0.5%
Standard individual customers Treasury Bill 1-Year +2%

	Interest Rate	Loan Amount/ Outstanding	Monthly Instalment	Maturity (months)
1st year	4.5%	ALL 5,000,000	ALL 45,000	144
2nd year	5%	ALL 4,705,770	ALL 45,100	149*

* To keep the monthly installment the same, the loan term will be extended to 149 months from the disbursement date.

Example 2:
Decrease of Treasury Bond by 0.5%
Standard individual customers BTH+2%

	Interest Rate	Loan Amount/ Outstanding	Monthly Instalment	Maturity (months)
1st year	4.5%	ALL 5,000,000	ALL 45,00	144
2nd year	4%	ALL 4,705,770	ALL 46,538	140*

* To keep the monthly installment the same, the loan term will be reduced to 140 months from the disbursement date.

General Information

Second-level banks generally use the 1-year Treasury Bill rate as the base rate for calculating interest on loans in Lek, while for loans in Euro they use the 1-year Euribor rate.
“Treasury Bill” – is a negotiable debt instrument with a maturity of up to one year, issued and guaranteed by the Government of the Republic of Albania. Treasury Bills are issued in the national currency (Lek) and have maturities of 3, 6, and 12 months. Auction results for Treasury Bills are announced on the same day of the auction and published on the Bank of Albania’s website:
www.bankofalbania.org
“Euribor, or Euro Interbank Offered Rate” – is a reference rate published by the European Money Markets Institute, based on the average interest rates at which Eurozone banks offer to lend funds to other banks in the interbank market. Information on Euribor rates is published at:
https://www.euribor-rates.eu/ecb-refinancing-rate.asp
Example:

1-year Treasury Bill rate on 31.10.2025: 2.5%
1-year Euribor rate on 31.10.2025: 2.19%

Terms and Conditions

In ALL Currency:

Product Type	Financing Criteria (Loan Value / Investment Value)	LTV (Loan Value / Market Value)	Interest Rate Formula
Home Loan	If the property value in the sale-purchase contract is lower than the collateral value, it should be: • Up to 85% for first-time buyers • Up to 80% for second-time buyers	First-time buyers: up to 85% Second-time buyers or for rental: up to 80% For collateral of type “Shop”: up to 75%	Salary Paid Customers: 1 Year Treasury Bill +1.5% not less than 2.5% (changing each 12 months) Other Customers: 1 Year Treasury Bill +2% not less than 3% (changing each 12 months)
House Construction Loan	Not higher than the investment value

In EURO Currency:

Product Type	Financing Criteria (Loan Value / Investment Value)	LTV (Loan Value / Market Value)	Interest Rate Formula
Home Loan	If the property value in the sale-purchase contract is lower than the collateral value, it should be: • Up to 75% for first-time buyers • Up to 70% for second-time buyers	First-time buyers: up to 75% Second-time buyers or for rental: up to 70% For collateral of type “Shop”: up to 75%	Salary Paid Customers: 1 Year Euribor + 2.5% not less than 3.5% (changing each 12 months) Other Customers: 1 Year Euribor + 3% not less than 4% (changing each 12 months)
House Construction Loan	Not higher than the investment value

Loan Term	12 years from the disbursement date, adjustable up to 25 years for loans in ALL depending on the fluctuation of the 1-year Treasury Bond rate, and for loans in EUR depending on the fluctuation of the 1-year Euribor rate.
Maximum loan amount	Up to 50,000,000 Lekë / EUR 500,000
Loan Disbursement Commission	1% of loan amount 0% for loans purchased from other banks

Customers may choose whether or not to take out life insurance or accept a higher interest rate. If the customer chooses not to take out life insurance, the options are:
If the customer is up to 45 years old, the interest rate will be 0.5% higher.
If the customer is over 45 years old, the interest rate will be 1% higher.

Please download the relevant documentation for Flexi home Purchase/Construction Loan
Please download the standardized pre-contractual information sheet.

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Flexi Mortgage Loan