TIRANA, May 7 /ATA/ The Supervisory Council of the Bank of Albania has approved several measures for granting mortgage loans to individuals.
In today’s press conference, the Governor of the Bank of Albania, Gent Sejko, explained that “the measures were aimed at setting a cap on the loan relative to the value of the property or home used as collateral, as well as imposing a cap on the ratio between the loan repayment and the borrower’s income. Additionally, there was a recommendation regarding the loan’s maturity, particularly for borrowers who reach retirement age.”
More specifically, Sejko stated: The cap on the loan-to-collateral ratio for loans in lek will be 85% for the first home and 80% for the second home or rental property, while for foreign currency-denominated loans, it will be 75% and 70% respectively, in order to mitigate the exchange rate risk.
The cap on the installment-to-income ratio for loans in lek will be 40% for purchasing the first home and 35% for purchasing a second home or for rental properties. For loans in foreign currency, the limit will be set at 35% for the first home and 30% for additional properties.
Sejko clarified that these measures are implemented by the Bank of Albania to standardize lending activities within the banking sector. However, he pointed out that banks often establish even lower limits than those set by these guidelines during the lending process.
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