Product description
Through mortgage loans, it is intended to fulfill the personal needs of individuals for the purchase, construction or reconstruction of a residential property, but also of individuals who are self-employed professionals such as: (doctor, dentist, pharmacist, lawyer, etc.) who wish to buy or build their own work premises or individuals who generate income from employment and who wish to purchase a unit for investment purposes (rental).Interest Only Mortgage Loan is a loan where the customer pays only interest during the first few years of the loan making lower monthly instalments. Once the interest-only period ends, the customer will begin paying interest and principal. This loan is offered only in Lek currency.
General information
Second level banks use as a base interest for the calculation of the loan interest rate formula the 1 Year Treasury Bill rate."Treasury bills" - 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-month.
Example:
Treasury bill 1-year interest rate dt.30.09.2024 is 3.16%
Terms and Conditions
| Product Type | Financing Criteria Loan Amount / Collateral Open Market Value | Interest Rates for ALL Currency | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Home Loan – Type of Collateral offered (Apartment/Land and Building) in the name of the borrower/co-borrower |
80% |
Salary Paid Customers: 4% fixed for the first year then 1Y T-Bill +2% not less than 4% (changing each 12-months) Other Customers: 4.5% fixed for the first year then 1Y T-Bill +2.5% not less than 4.5% (changing each 12-months) |
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| Home loan – Collateral different from credit object | 75% |
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| House Construction Loan |
75% |
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| House Loan - Collateral same with credit object | 75% | Salary Paid Customers: 4.5% fixed for the first year then 1Y T-Bill +2.5% not less than 4.5% (changing each 12-months) Other Customers: 5% fixed for the first year then 1Y T-Bill +3% not less than 5% (changing each 12-months) |
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| Loan Maturity | Up to 25 Years
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| Currency | ALL | |||||||||||||
| Maximum Loan Amount | Up to 50,000,000 ALL | |||||||||||||
| Prepayment commission | 0% for partial and total loan liquidation. Partial loan liquidation can only be done on instalment date. | |||||||||||||
| Disbursement commission | •1% •0% for the loans transferred from other banks in cases where the loan contracts predicts a loan prepayment commission. |
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If the customer is up to 45 years old, IR will be 0.5% higher
If the customer is over 45 years old, IR will be 1% higher
Please download the appropriate documentation of Interest Only Mortgage Loans
Please download the standardized Pre contractual Information Form.