Mortgages in Montenegro
It is relatively difficult for foreign nationals to obtain real estate loans in Montenegro. Erste Bank is the only bank that works with foreign buyers; however, it only grants loans to foreigners who have residence permits.
"Erste Bank only issues mortgage loans to foreign citizens who have obtained their residence permits through employment (not through property purchase) and those hired under a labour contract. The terms are hard to meet: the applicant needs to be employed with a large and rather
|Maximum LTV ratio||50%|
|Minimum loan amount||€10,000|
|Maximum loan amount||€400,000|
|Loan term||3 to 20 years|
|Maximum age of borrowerby the end of the loan term|
Mortgage applications in Montenegro require the following documents:
- mortgage application
- passport copy
- proof of income: income certificate for the previous three months or bank statements for six months
- mortgaged property value assessment
- mortgage insurance certificate.
Borrowers must also have an account with the bank they apply to.
Loan applications can take several weeks for approval.
Borrowers also cover mortgage arrangements and pay annual insurance fees.
|Property appraisaland Due Diligence||—|
|Property insurance||Subject to property value|
|Mortgage arrangementfee||1% of the loanvalue|