Albania Mortgages: Are foreigner mortgages available?
July 2008
Mortgages have been available to locals for quite a few years and there are currently around 15 banks offering mortgage products. Some of the bigger European Banks - Raiffeisen Bank (Austria), Societe Generale (France), and Intesa San Paolo (Italy) have played an important role in the availability of products to western standards.
Currently banks are only JUST starting to launch mortgage products for foreign investors.
Recently in Tirana, we met with the banks to get the latest updates for our clients. Currently there are 3 banks confirmed offering foreigner mortgages. At this early stage, we do not believe it is necessary to work with a mortgage broker in Albania just yet.
It will be faster and easier to talk directly to the banks. We are happy to put our clients in touch with the right people.
- First Investment Bank - To UK/ Irish Clients Only
Loan to Value: Up to 80%
Max term: 30 years
Rates: From approx 7% - 11%
Interest Only available: Yes
Pre-hypotek possible: Yes (with guarantee from developer)
Self-Employed: Yes
Application Fee: EUR20
Management Fee: Up to 2%
- Raiffeisen Bank - To US/ Canada/ UK/ Irish/ German/ Italian/ Greek Clients Only
Loan to Value: Up to 75%
Max term: 20 years
Max Loan: EUR150,000
Rates: Euribor + 3.5%
Interest Only available: No
Pre-hypotek possible: Yes (with guarantee from developer)
Self-Employed: No
Administration Fee: 2%
- American Bank of Albania - To all nationalities
Loan to Value: Up to 70%
Max term: 20 years
Max loan: US$100,000
Rates: Euribor + 3.2%
Interest Only available: No
Pre-hypotek possible: No
Self-Employed: Yes
Administration Fee: 2% (min €300)
It is important to note that most mortgages are available once a property has a registered hypotek (Title Deed).
With all bank mortgages in Albania, it is compulsory to have Life Insurance and Property Insurance. These are a small additional charge.
The mortgage application process takes approx 2 - 4 weeks.
Additional banks are looking for launch products for foreign clients shortly. Join our mailing list to be the first to know.