In relation to Croatia’s accession to the European Union on 1 July 2013, the conditions for financing purchases of real estate in Croatia have been relaxed. Primarily foreign banks in Croatia have begun to grant to foreign nationals mortgages collateralised by the real property in Croatia that is being purchased.
The minimum mortgage amount is EUR 15,000. The maximum amount that can be borrowed from a Croatian bank is EUR 250,000. A loan may amount to no more than 50% of the purchase price of the property. The repayment term can range from 3 to 20 years. As a standard, bank charge administrative fees amounting to 1% of the loan amount. Open and active accounts at a Croatian bank are required: domestic (the Croatian kuna, HRK), and an account for foreign-currency transactions.
Loans are provided with a currency clause in EUR and paid out in HRK at the median rate of the creditor bank. Monthly repayments are paid in HRK at the given bank’s median rate of the EUR as at the repayment date.
Interest Rate | Actual (Effective) Interest Rate*** |
Monthly Repayment in EUR |
Total Amount (EUR) Payable by Client |
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* 12-month (12M) EURIBOR rate as at 1 July 2013 is 0.529. The value of the twelve-month EURIBOR rate is, in line with the Mortgage Agreement, set once a year using the rate published on the REUTER’s page two business days before the start of the period to which the interest rate is to apply.
** p.p. = percentage point
*** The actual (effective) interest rate, the repayment amount, and total amount payable by the client have been calculated on the basis of the conditions stated, with a mortgage of EUR 100,000.00, a 240-month loan repayment schedule, and a 1% fee as at 1 July 2013.
The buyer must present a notarised purchase agreement. The maximum age at the time of the final repayment of the parties applying for a loan whose credit rating has been checked is 70 years. The bank reserves the right to assess each business case individually and require additional documentation and instruments to collateralise the loan as it deems fit.
Source: Rellox, Erste Bank (Croatia)