Mortgages in Montenegro
When buying a property in Montenegro, arranging a mortgage can become an issue for some people, and acquiring a loan for real estate by non-residents of the country is not easy. Only one bank, "Erste bank" works with foreign citizens, however, it only issues mortgages to those people who have a residence permit. The residence permit must be obtained on the basis of employment on a permanent contract in a large company. This means that the basis for obtaining residence permits is an invitation from the employer or the opening of an affiliate of an international company.
Obligatory conditions are the availability of "clean documents" on the object, a competent evaluation on it and the availability of a document of sufficient income from the borrower; the mortgage must be 30% of the monthly income of the borrower.
Necessary Documents for obtaining a mortgage in a bank in Montenegro
- a passport;
- a certificate of income for the last three months, from a bank or an accountant;
- an application for a mortgage;
- an insurance certificate for real estate;
- a document on the valuation of mortgaged property;
- opening an account with a bank.
These documents must be translated into the Montenegrin language and notarized.
Conditions of mortgage lending in Montenegro
The maximum loan size granted by the bank
≈50%
The interest on bank loans
≈5%
A term of the mortgage
up to20 years
The minimum amount of a mortgage
€10,000
The maximum amount of a mortgage
€400,000
A mortgage is provided
up to the age of 65
The Commission on the issuance of credit (one-time fee)
2%
There are various additional costs when obtaining a mortgage in Montenegro. In addition to general payments the borrower pays a mortgage fee and its registration. Also, the insurance for the property; this payment is made annually.
The borrower will need to pay Due Diligence, real estate insurance (the amount depends on the price of the property) and the mortgage fee will be 1% of the property value.
Our company Mercury Group Luxury Estate will gladly provide you with all necessary advice on mortgage and other issues from our best specialists. Also, the company will render all its professional skills at all stages of the deal. In addition, if you need advice from a specialist, do not hesitate to ask us questions in the online chat or an email.
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