Mortgage in Slovakia

A mortgage in Slovakia is a long-term loan for a period of four to thirty years, provided for the purchase of real estate. A necessary condition for obtaining it is collateral. For most banks, it is not necessary for the collateral to belong to the person applying for the mortgage. It is possible to pledge the property of a third party with his consent.

The loan amount is determined by the banking institution based on the market value of the property, usually from 70% to 90% of the property value, and for the remaining amount they can provide a loan of up to 7% per annum. To obtain a mortgage, you need to involve a specialist who will evaluate the property and provide the results to the bank. The bank has the right to adjust the value of the property determined by the expert.

When receiving a loan, the borrower can fix the interest rate for up to five years, this is the period during which the bank leaves the loan rate unchanged for the client. After this period, the rate can be changed. Having taken on obligations, the client must fulfill them in a disciplined manner - make a monthly payment on the loan before a certain date, and in case of delays, pay penalties and fines.