Zagreb, 23 August 2018 - Interest rate on housing loans in kuna with a subsidy, in cooperation with the Agency for Legal Transactions and Mediation of Real Estate (APN), amounts to 2.99% in Erste Bank in the first seven years of repayment when the fixed interest rate is applied, i.e. 3.04% (2.6 percentage points + six-month NRS2 for HRK) in the remaining period of loan repayment, when variable interest rate is applied. For housing loans with a currency clause in EUR, only the fixed interest rate is offered for the entire period of loan repayment and it amounts to 3.3%.

The amount of the effective interest rate depends on the maturity of the loan, repayment method and amount of the real property insurance premium, which may differ in individual cases, depending on the clients’ preferences. Accordingly, the effective interest rate may range from 3.10% to 3.75% in the case of loans with a subsidy in HRK or from 3.39% to 3.75% for loans with a currency clause in EUR.

Representative calculation for a housing loan under the APN programme

  1. 6-month (6M) NRS2 for HRK on 1 August 2018 is 0.44%. The amount of 6M NRS2 for HRK is determined in accordance with the Loan Agreement on a six-month basis, by taking the last published value before the beginning of each interest period.
  2. p.p. - percentage point
  3. Effective interest rate, the amount of instalments and the total amount that the client has to pay are calculated on 1 August 2018 with the above terms and with the annual insurance policy premium in the amount of HRK 400 (average price of the policy in the APN programme in 2017). The amount of subsidy in this calculation is 30% (group VIII).

 

Housing loans with a subsidy are granted with a repayment deadline of 15 to 30 years, in the amount of no more than HRK 2 million for loans in HRK or EUR 500,000 for loans with a currency clause, while the amount of up to EUR 100,000.00 is subsidised. Loans are approved without the payment of the loan processing fee, capitalised interest and the real property estimate cost. No guarantee deposit, life insurance policy and mandatory client status are required for the realisation, while the 10% discount on the asset insurance policy premium at Wiener osiguranje of Vienna Insurance Group d.d. is a special benefit. Possible additional costs for the clients in the procedure of obtaining a subsidised housing loan are certificates of regular performance of obligations in other financial institutions, which are necessary for determining the creditworthiness. Also, after APN’s approval, clients should count on the costs of the asset insurance policies, public notary costs, as well as the costs of registering a mortgage and ownership in the land registry.

Within last year’s programme of subsidised housing loans in cooperation with APN, Erste Bank realised 411 loans with the total value of HRK 205 million, which accounted for approximately 18% of the total loans granted within the programme.

For additional information:

Erste&Steiermärkische Bank d.d., 51000 Rijeka, Jadranski trg 3a, www.erstebank.hr

Corporate communications office

Zagreb, Ivana Lučića 2, e-mail: pr@erstebank.com

Dario Gabrić

Tel: +385 (0)72 37 13 71
Mob: +385 (0)99 2371 371

Danijela Trbović

Tel: +385 (0)72 37 15 31
Mob: +385 (0)99 2371 531

Dario Gabrić

Tel: +385 (0)72 37 24 93
Mob: +385 (0)99 2372 493