Housing loan
About housing loan
Adriatic Bank housing loan is intended for the purchase of a new flat or a flat under construction, for reconstruction or adaptation of property (house or flat) with a maturity of 1 to 10 years. Another advantage of Adriatic Bank housing loan is approval without life insurance policy of any loan participants if the last annuity is due before the age of 65.
Most convenient method of calculating interest
Maturity from 6 to 120 months
Even for flats under constructions without additional collateral
Conditions for Loan Approval
Loan user should have permanent Labour Contract, opened and active account in Adriatic Bank
Client must be a person older than 18 years, and the repayment of the last annuity should be completed before the age of 67
Loan amount: Minimum 15,000.00€
Depending on the amount and maturity of the loan, the loan processing fee ranges from €225 to €947
Property insurance policy - assigned in favor of the Bank/p>
For clients under the age of 65, life insurance policy is not needed in the moment of final installment maturity
For clients whose loan is due after the age of 65, the life insurance policy is mandatory in the amount of ½ of the approved loan.
First rank mortgage registered on the property in favor of the Bank
Necessary documentation
Duly fulfilled and signed Loan application form
Verified and signed income confirmation
Two administrative ban orders verified by the client's employer (if verified and executed by the employer)
Signed consent for inquiry into Credit register
Real estate purchase agreement with a clearly indicated seller's account, verified in the Court/or by Notary office if the real estate loan is approved.
Evidence of paid fee for application in the Credit register
Bill of exchange that may be bought at the Bank's teller and bill of exchange authorization
A copy of passport or ID card with phone numbers and address (original document to be presented)
Title deed on which the lien is registered, not older than 7 days from the day of documents delivery.
Pro forma invoice for construction material or works if housing loan is approved for renovation
Credit calculator
Detailed data
| Creditor | ADRIATIC BANK AD PODGORICA |
| Registration Number | 03087158 |
| Address | Bulevar Dzordza Vasingtona 98, 10th floor, Podgorica |
| Phone Number | +382 20 680 973 |
| Email Address | Retail@adriaticbank.com |
| Website (*) | www.adriaticbank.com |
| Main Characteristics | |
| Borrower | Natural person (consumer), resident citizen of Montenegro with permanent residence in Montenegro or non-resident, who meets the creditworthiness requirements. |
| Loan Purpose | Purchase of real estate in Montenegro (primary residence or investment property). |
| Currency | The loan is approved in EUR. |
| Loan Amount | Greater than EUR 15,000. |
| Type and Amount of Interest Rate |
Fixed interest rate: 4.95% per annum. Within its housing loan offer, the Bank applies exclusively a fixed interest rate. With a fixed interest rate, your monthly obligation remains identical from the first to the last installment, regardless of economic trends, inflation, or changes in reference interest rates on the market. The Bank does not offer a variable (floating) interest rate or a combined interest rate. |
| Intercalary Interest | Intercalary interest is the interest calculated on the loan amount from the date the loan is disbursed until the start of annuity repayment, at the regular – agreed nominal interest rate. Intercalary interest is calculated based on the actual number of days in the specific month of disbursement. For example, if the loan is disbursed on 15 September, intercalary interest is charged for 15 days. |
| Interest Calculation Method | Interest is calculated using the compound (conformal) method. |
| Repayment Period |
Maximum repayment period: 15 years; The final maturity date of the last loan installment may not exceed the age of 65 of the Consumer. |
| Loan Processing Fee | No fee. |
| Collateral Instruments |
Mortgage on the property being financed or on another adequate property, provided it meets the Bank’s internal criteria and applicable legal regulations; Administrative wage garnishment of the Consumer (if applicable); Bills of exchange issued by the Consumer; Property insurance policy against fire and other basic risks, valid until the end of the loan repayment period, assigned in favor of the Bank; The Bank reserves the right to request additional collateral instruments, depending on the Consumer’s creditworthiness. One of the conditions for obtaining a housing loan is providing own participation in the amount of 10% of the real estate purchase price. |
| Property Valuation |
Property valuation for the mortgage is mandatory. At the Consumer’s request, the Bank orders the property valuation, which is performed by an authorized appraiser of the Bank. The cost of the valuation is borne by the Consumer and is included in the APR. |
| Additional Services |
In addition to the mortgage on the property, a property insurance policy must be contracted. Insurance policies are contracted with an insurer acceptable to the Bank and assigned in favor of the Bank. The Consumer has the right to contract the policy with an insurer of their choice, provided that the insurer is acceptable to the Bank based on objective criteria of financial stability and creditworthiness, and that the policy provides a level of coverage that meets the Bank’s requirements. The Consumer is obliged to provide insurance policies for the entire agreed loan repayment period. |
| Early Loan Repayment |
The Consumer has the option of partial or full early repayment of the loan. The Creditor will not charge a fee for early repayment. |
| Loan Repayment | The loan is repaid in monthly annuities. An annuity is a fixed amount paid by the Consumer and consists of a portion of principal and interest. |
| Right to Withdraw from the Loan Agreement |
The Consumer has the right to unilaterally terminate the loan agreement by submitting a written request to the Bank, without stating a specific reason, no later than 14 days from the date of concluding the loan agreement. In the event of unilateral termination, the Consumer is obliged to: - notify the Bank of the intention to terminate within the above-mentioned period, - without delay, and no later than 30 days from the date of sending the notice of termination, - repay to the Bank the principal and accrued interest calculated at the agreed interest rate from the date of withdrawal of funds under the loan agreement until the date of full repayment. |
| Possible Additional Costs Not Included in the Total Loan Cost | Costs of notarization of the agreement and accompanying documentation where required, costs of transferring ownership rights to real estate, payment transaction fee charged for processing the transfer of funds from the borrower’s account to the seller’s account, costs of revaluation of mortgaged property if conducted during the term of the agreement, as well as fees that the Consumer is required to pay due to non-fulfillment of obligations under the loan agreement. |
| Housing loan - Representative example | |
|---|---|
| Annual nominal interest rate (NIR) | 4.95 % – 6.95 % (depending on Borrower’s category) |
| Annual effective interest rate (EKS) | 5.41% |
| Loan processing fee (charged one-off upon loan disbursement) | Depending on the amount and maturity of the loan, the loan processing fee ranges from €225 to €947 |
| Fee for data use from the CBCG credit register | 3.00 € |
| Annual penalty interest | Nominal increased for 50% |
| Maturity period | Up to 120 months |
| Representative example | For a housing loan amounting to € 50,000.00 and with a repayment term of 120 months, the nominal interest rate (NIR) is 4.95%, while the effective interest rate (EIR) is 5.65%. The calculation of the effective interest rate (EIR) includes the nominal interest rate, a one-time loan processing fee of € 750, a fee for 2 bills of exchange (€ 4.00), a fee for an inquiry to the Credit Register of the CBCG – RKB (€ 3.00), the cost of the life insurance policy € 221.26 (The amount of the premium is paid once and depends on the client’s state of health), the cost of making a pledge statement (€ 250), the cost of the fee for obtaining proof of ownership of real estate (€ 5.00), the cost of registration pledges on real estate (€ 31.50), cost of property insurance policy (€ 174.73), cost of real estate appraisal (€ 80), (Total: € 1,519.49). The total amount that the client needs to pay is € 64,697.55, while the amount of the monthly annuity is € 526.45. The total amount paid by the client represents the sum of principal, total interest and other fees in connection with the loan approval. The amount of the life insurance policy premium is paid once and depends on the health condition of the client. The entrance age taken in the example is 35 years, gender male. The area of the residential building taken in the example is 34 m², construction value € 700 per m². |
* The APR calculation of the representative example is shown under the assumption that the loan is disbursed on 26.02 and that intercalary interest is paid until 28.02.
*** Notary costs may vary slightly depending on the circumstances of the case (number of pledgors, etc.). The cost of property insurance policies may vary depending on the size of the property, etc., whereby the representative example calculation is shown under the assumption of a residential area of 50 m². Additionally, the cost of life insurance depends on the Consumer’s age, gender, and general health condition, whereby the representative example calculation is shown under the assumption of an entry age of 33 years, female.
| Possible Consequences of Non-Compliance with Obligations under the Housing Loan Agreement | In case of delay or failure to meet assumed and agreed loan obligations, the consequences for the consumer may be as follows: - Outstanding obligations for principal, interest, fees, and costs become due, resulting in the consumer being in default on all obligations; - The Bank will start charging default interest on the total amount of due obligations; The Bank gains the right to initiate appropriate legal proceedings to enforce collateral or realize it in another manner, in accordance with legal regulations; costs of sending reminders and enforcement proceedings. In case of difficulties with monthly payments, please contact us immediately so we can explore possible solutions. Ultimately, failure to regularly fulfill your obligations may result in the loss of your property. |
| Other Information | The Client may submit a complaint to the Bank in writing, either by submitting it at any of the Bank’s premises by filling out the flyer “Your comments, compliments and suggestions” or by email to: kvalitet@adriaticbank.com. The Bank may also receive complaints from various institutions to which the Client has addressed an issue regarding the Bank, such as the Consumer Protection Center. The Client has the option to submit a complaint to the Central Bank and the possibility of alternative dispute resolution with the Bank (Central Bank, Bulevar Svetog Petra Cetinjskog no. 6, Podgorica, zastita.potrosaca@cbcg.me, tel. +382 20 480 248 and the Center for Alternative Dispute Resolution, Serdara Jola Piletica bb, Podgorica, TC Palada, email centarzaars@centarazars.me, tel. +382 20 206 350). |
| Supervisory Authority of the Credit Institution | Central Bank of Montenegro (www.cbcg.me). |