SUBSIDIZED HOUSINGLOAN

Purpose loan for purchase of a new flat or construction/purchase of a new already constructed house or in the phase of construction in accordance with the Construction Law


characteristics

Purpose loan:

    • Subsidized housing loan may be only used for purchase of a flat or house directly from the facility investor or contractors, i.e. for construction of a new house if the construction and technical documentation is on behalf of the subsidized housing loan applicant
    • Subsidized housing loan may be only used if the purchase price per m2 net useable area with VAT included do not exceed EUR 900 in MKD counter value under middle rate of NBRM on the date of application for subsidized housing loan

      MAXIMUM ANOUNT – EUR 50,000.00

      25% own participation in the investment

      REPAYMENT PERIOD

      1/ minimum 240 months, and maximum 360 months in case where half of the monthly annuity in the first five years of repayment for purchase of a new flat is paid from the Budget of the Ministry of Finance, or 75% of the monthly annuity in the first five years of repayment for purchase of construction/purchase of a new house; or

      2/ minimum 240 months, and maximum 360 months in case half of the participation for the flat that may not exceed 25% of the maximum subsidized value of the housing loan is paid from the Budget of the Ministry of Finance, i.e. EUR 6,250 in MKD counter value, or 75% of the participation for the house which may not exceed 25% of the maximum subsidized value of the housing loan, i.e. EUR 9,375 in MKD counter value
      If the loan applicants for construction/purchase of a house are individuals up to and 35 years of age included, or a individual is in a matrimony where at least one of the spouses is up to and 35 included is subsidized from the Budget of the Republic of Macedonia, where the Ministry of Finance pays:

      • 80% of the monthly annuity in the first eight years and 50% of the monthly annuity in the next 3 years for construction or purchase of a new house; or
      • Total amount of the participation for construction or purchase of a new house, which may not exceed 25% of the maximum subsidized value of the housing loan, or not more than EUR 12,500 in MKD counter value

      Application costs – MKD 500.00

      Commission for approved loan - 1%

      Prepayment fee – none

      conditions

        • ½ creditworthiness (annuity/salary);
        • possibility of including not more than one loan applicant (close family member);
        • age limit – maximum 75 years of age on the date of the loan maturity.

          COLLATERAL INSTRUMENTS:

          draft and draft endorsement, attachment of salary, insurance policy of the real estate assigned in favor of the Bank and one of the two options offered:

          • in case a borrower does not have participation of minimum 25%, mortgage value must be in proportion of 2/1 against the loan, of which pledge must be mandatory established on the new purchased flat;
          • minimum own participation of 25% and mortgage on the new flat/house, except for applicants or persons in matrimony with and 35 years of age included who apply for construction/purchase of a house with subsidized participation that may not exceed 25% of the maximum subsidized value of the housing loan, or not more than EUR 12,500 in MKD counter value; ½ creditworthiness (annuity/salary).

          interest rates

          In case half of monthly annuity in the first five years of loan repayment for purchase of a new flat is paid from the Budget of the Ministry of Finance, or 75% of the monthly annuity in the first five years of loan repayment for purchase of construction/purchase of a new house, and in case where a individual up to and 35 years of age included, or a individual is in a matrimony where at least one of the spouses is up to and 35 included:

          • 3.95% fixed interest rate in the three years of the loan repayment;
          • 4.44% fixed interest rate in the fourth and fifth year of the loan repayment;
          • 6 month EURIBOR + 5% margin, and not less than 6.90% after the fifth year adjustable interest rate.

          In case where half of the participation for the flat which must not exceed 25% of the maximum subsidized value of the housing loan, i.e. not more than EUR 6.250 in MKD counter value is paid from the Budget of the Ministry of Finance, or 75% of the participation for the house that may not exceed 25% of the maximum subsidized value of the housing loan , i.e. EUR 9,375 in MKD counter value, and the total participation amount for construction or purchase of a new house that may not exceed 25% of the maximum subsidized value of the housing loan, or EUR 12.500 in MKD counter value for construction/purchase of a house is a individual  up to and 35 years of age included, or a individual is in a matrimony where at least one of the spouses is up to and 35 included:

          • floating interest rate annually not more than 6 month EURIBOR + 4.5 p.p. annually for the entire repayment period – adjustment shall be made on semiannual basis, on 01.01 and 01.07 each year.


          other info

          * If the employer’s policy is to not verify attachment of salary, mandatory solemnization of the agreement with enforcement clauses is necessary.

          ** Funds for subsidized loan are not refundable in case of regular repayment of the subsidized loan after the expiry of the tenth year, or twelfth year after repayment of the loan.