Stricter Loan Rules in Croatia: Who Will Even Be Able to Buy Property?

Welcome to the new era of housing loans in Croatia, where banks have decided to put a stop to excessive consumer debt! As of July 1st, stricter loan rules have come into effect, and if you thought buying your first property would be easy, think again. Now, the monthly installment for a housing loan cannot exceed 45% of your income, and for non-purpose loans, only 40%. Banks will no longer approve loans for the full value of the property, but up to 90% maximum. This means you will need a significant amount of savings to even be able to buy a house or apartment.

Loan broker Srđan Grzunov explains that these measures will mostly affect those with higher incomes, as the monthly installment cap of 45% was not previously enforced. For example, a borrower with a net monthly income of 1,000 euros could previously get a loan amounting to 150,000 euros, but now can only get up to 135,000 euros, as the rest must be covered by their own savings.

These changes were introduced to prevent excessive borrowing and encourage citizens to save more and plan their finances carefully. Although the rules are stricter, the Croatian National Bank has left some flexibility for banks to approve a limited number of loans outside these limits each quarter, primarily for clients solving their housing needs.

Statistics show that in the first three months of this year, 1.2 billion euros worth of housing loans were disbursed, a 50% increase compared to the same period last year. The average loan amount also increased by nearly 20%, and the maximum repayment period remains 30 years. Interest rates have remained stable without major changes.

So, if you thought getting a loan for your first home would be easy, it’s time to seriously focus on saving and financial planning. Banks have set new barriers, and buying property is becoming a real mission for those without substantial savings.

What do you think? Are these measures too harsh, or is it about time someone stopped reckless borrowing? Share your thoughts, maybe together we can find a way out of this credit jungle!

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