Home Loans for Young People

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Housing loan with 1% down payment

According to the latest information, housing loans for young people might become available to students and unemployed individuals aged 20 to 36 in Serbia. The program, expected to start in March, would enable the purchase of properties up to €100,000 with only a 1% down payment, with a repayment term of up to 40 years or until the age of 70 at the latest.

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New national loan program for youth

The government has introduced a new program worth 400 million EUR

The state allocated a budget of 400 million euros for the implementation of the program. That is why it is crucial to precisely define the criteria for the selection of beneficiaries so that support is given to those who really solve the basic housing issue, and not to those who want to profit through possible sales or rental of real estate.

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Wondering which home loans for young people are the most favorable?

Calculate your monthly installment using our youth home loan calculator to quickly and efficiently plan your budget.

Terms for a youth home loan

To qualify for general terms for a youth home loan, you need to meet the following criteria:

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  • 1

    Employment

    Citizenship of the Republic of Serbia and residence in its territory

  • 2

    Income

    Minimum 3 months for an indefinite period with the current employer (without termination of employment)
    For a certain period of time (with additional guarantee of a family member)
    Unemployed (with the guarantee of a family member)

  • 3

    Total work experience

    It is necessary to meet the creditworthiness requirement, the maximum load of earnings is 60%

  • 4

    Total length of service

    Minimum of 1 year of total work experience

  • 5

    Credit bureau report

    The applicant must have a proper credit bureau report

  • 6

    Participation

    The minimum participation is 1% of the value of the residential real estate

  • 7

    Conditions for the guarantor

    The guarantor must be creditworthy (have enough income to cover monthly loan obligations)
    The guarantor must have a good credit history (no outstanding obligations to banks)

Schedule a meeting with an advisor Schedule a meeting completely free of charge. Our advisor will contact you as soon as possible to provide the necessary assistance.

Documentation for Housing Loan for Young People

To apply for a loan with state support for the purchase of your first residential property, you need to collect documentation in accordance with the bank's requirements

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Documentation

ID card

Identity card of the guarantor

Application for housing loan

Confirmation of an open current account

Certificate of employment and amount of income (not older than 15 days)

Administrative ban (2 copies)

Payrolls for the last 3 months

Bank account statement (payments for the previous 6 months)

Location documentation, if real estate is purchased from a legal entity

Basis of acquisition and identity card of the real estate seller, if he is a natural person

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Banks that offer loans for young people

All banks in Serbia can participate in the program, giving clients the opportunity to apply for loans with state support.

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Flexible interest rates and long-term security

Interest in the first six years

  • Fixed interest: 3.5% per year
  • Subsidy: The state subsidizes 2 p.p. (percentage point) interest
  • Interest paid by the user: 1.5% per year

Interest after six years

  • Variable interest: 3M/6M EURIBOR + 2.0%

Another bank in the guarantee scheme!

In addition to Poštanska Štedionica and NLB Komercijalna banka, UniCredit bank joined Serbia's guarantee scheme for housing loans for young people.

What Are the Limitations in the Subsidized Housing Purchase Program?

Loan Limit up to 100,000 Euros
The maximum loan amount subsidized by the government is 100,000 Euros. The property price is not limited, but buyers relying solely on this amount are often limited to peripheral areas of Belgrade and properties ranging from 40 to 50 m².
First residential real estate
Banks must offer a one-year grace period. Clients have the option to increase the down payment or waive the grace period. Early loan repayment, either partial or full, is possible without additional fees.
Interest Rate Subsidies for Six Years
Banks are obliged to offer a grace period of one year. Clients have the right to decide on their own whether to increase participation or waive the grace period. Early repayment of the loan, whether partial or complete, is possible without additional fees.
Interest rate subsidy for six years
    First year: Fixed interest rate of 1.5% with a state subsidy of 2%
  • Second to sixth year: Same interest rate with identical subsidy
  • After the sixth year: The interest rate becomes variable and is calculated according to 3M/6M Euribor with an addition of 2%
Extended repayment term
The loan repayment term can last up to 40 years, with the restriction that the last installment is due no later than the age of 70.
Compulsory housing
Beneficiaries of subsidized housing loans are required to live in the purchased property and may not rent or sell it during the first six years of repayment. Control is provided to ensure that the property is used exclusively for housing and not for profit.
Buying from close relatives is not allowed
Subsidies are not available for the purchase of real estate from a spouse or close relatives, including parents, children, grandparents, as well as persons from the second line of succession.
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How do Housing Loans with State Subsidies change the real estate market?

The implementation of the new state loan program for young people could significantly shape the real estate market in Serbia, especially in the segment of real estate worth up to 100,000 euros.

With a minimum down payment of only 1% and interest rate subsidies during the first six years, the interest of young buyers is expected to increase, which could further increase demand and potentially raise real estate prices.

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The most favorable home loans for young married couples

The most favorable home loan for young married couples depends on the bank's terms, interest rates, and available subsidies.

It’s important to compare different offers, including interest rates, repayment terms, and additional costs. Also, be sure to check for subsidy options and the flexibility of repayment terms.

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Bank
Offer Description
Interest Rate

Bank

NLB Komercijalna Bank

Offer Description

Offers subsidized home loans with lower interest rates for young married couples.

Interest Rate


Combined,
Variable

Bank

OTP bank

Offer Description

Offers loans with fixed and variable interest rates, with the possibility of subsidies for young married couples.

Interest Rate


Combined,
Variable,
Fixed

Bank

Banca Intesa

Offer Description

Offers home loans with favorable interest rates and the possibility of subsidies for young married couples.

Interest Rate


Variable,
Combined

Bank

AIK bank

Offer Description

Provides loans with competitive interest rates and flexible repayment terms for young married couples.

Interest Rate


Variable,
Fixed

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Frequently asked questions

Who can apply for a home loan with a 1% down payment?

Citizens of the Republic of Serbia between the ages of 20 and 36 can apply for a home loan with a 1% down payment.

Is it necessary for me to be employed in order to exercise the right to a loan?

Both employed and unemployed can purchase an apartment.

Are there additional costs with the loan?

There are no costs for credit processing, mortgage registration and issuance of the real estate list to the Republic Geodetic Institute, certification of the pledge statement and certification of the real estate purchase agreement at the notary public. Costs of real estate valuation represent the most important mandatory cost.

Does the state guarantee my loan?

Yes, the state guarantees up to 40% of the loan value in the first 10 years of repayment.

What types of real estate and facilities can be financed with a housing loan for young people?

With a housing loan for young people, it is possible to finance a house, apartment and parts of a residential building that are intended for living, a garage or a garage space if it is together with the apartment, as well as land with a building permit for the construction of a house, with the fact that cottages are not considered residential real estate.

How can I apply for a housing loan for young people?

In the process of applying for a housing loan for young people, Kredium advisors can help you and provide all the necessary information, as well as assist in collecting and submitting documentation. You need to register on our site and one of the advisers will contact you.

Is there a possibility of early repayment of a housing loan for young people?

Yes, most banks allow early repayment of a housing loan for young people, but it is important that you ask about any additional costs or fees that may be associated with early repayment.

Is insurance in case of inability to repay the loan mandatory?

Insurance in case of inability to repay the loan is not mandatory but optional, according to the client's choice. Home loan insurance protects your property against unforeseen events and provides financial protection. It also reduces the risk for the bank.

Does the real estate being bought have to be registered?

Yes, for existing buildings (old buildings and new buildings), the real estate must be registered in the cadastre and have a valid real estate certificate. The loan is secured by mortgages, so it is necessary for the real estate to be registered. For buildings under construction, suitable residential real estate is:
- In a building under construction financed by a bank or the Republic of Serbia, with the possibility of establishing a mortgage.
- Part of the building under construction within the project financing of that bank.
- Part of the building under construction within the project financing of another bank, with a degree of completion of at least 60%.

- Part of the building under construction with a building permit issued by the Construction Directorate of Serbia.
- Part of the building under construction which is part of the state support measures for the detachment

Is it possible to take out a loan to build a house or buy a prefabricated house?

Yes, a loan can be taken out to build a house or buy a prefabricated house.

If I became the owner of a part of immovable property in which I do not live, through inheritance or probate, can I apply for a loan?

No, the law recognizes only the first residential immovable property, which represents the immovable property that the loan beneficiary acquires independently, and until submitting the loan application, he did not have any residential immovable property in his name, nor is he the beneficiary of a housing loan.

If I meet all the conditions, but I am married to a spouse who is the owner of the property, can I apply?

According to the Law on establishing a guarantee scheme and subsidizing part of the interest as a measure of support for young people in the purchase of their first residential property, the client can apply for this loan even if he is married to a spouse who owns the property.

Is the purchase of an apartment with a youth loan subject to VAT refund for the first real estate?

The purchase of an apartment with credit support for young people is subject to VAT refund for the first immovable property, if the conditions prescribed by law are met.

Can I apply for a housing loan for young people if I have a bank loan, which is not a housing loan?

You can, if you meet your bank's requirements for creditworthiness.

Contact us

TC Galerija, Bulevar Vudroa Vilsona 14, 11000 Beograd