Albanian Mortgage Market Highlights

- Usually, interest rates range between 7% and 8.5%
- 70%-80% LTV finance is offered
- Loans are offered for terms of 25 and 30 years
- Self-employed individuals can secure mortgage loans
- Upfront costs equivalent to 2%
- Interest-only mortgages are also offered

The time required to secure a mortgage in Albania is extensive and the procedure might be bureaucratic in nature. Though in the past few years, it has been noticed that the procedure has bettered considerably since the banks/lenders are becoming accustomed to transacting with the foreign nationals. If you obtain a mortgage in Albania, there might be some hidden costs/fees.

If you are thinking about buying a real property in Albania, mortgages in Albania are normally available for the Albanian citizens and the majority of foreign nationals. You can secure a mortgage for either buying a house or refinancing for the purpose of home renovations and other objectives decided on a case by case basis. Mortgage loans in Albania are usually offered in two types: interest-only mortgage and repayment mortgage (interest and principal). The lowest amount offered is €30,000. Nevertheless, there is no maximum limit but the loan amount should not go above 70% of purchasing price or property valuation.

Furnishing of proof of income is necessary under all circumstances. This comprises investment, pension, salary income or rental income. It is not necessary that the lender would take into consideration all of them while ascertaining the maximum loan amount that can be offered. At present, non-status loans are not provided.

Important Mortgage Lenders in Albania

Following are the names of the prominent mortgage lenders in Albania:

- American Bank of Albania
- Credins Bank
- Alpha Bank
- Tirana Bank
- Banka Kombetare Tregtare
- Credit Bank of Albania
- Pro Credit Bank
- Banka Popullore