A mortgage is the only way for most people to buy an apartment. In Serbia, banks offer loans with fixed interest rates (usually 3.5-5% for a period of 5-10 years, then variable) or fully variable rates (EURIBOR + margin). Our advice: choose a fixed rate for the first 10 years if you plan to repay long-term.
Key costs that many buyers overlook: loan processing fee (0.5-1% of the amount), mandatory life insurance, property insurance, property appraisal costs (EUR 100-200), and notary fees. In total, these costs can add 2-3% to the loan value.
The most important advice: never sign a contract without carefully reading the general terms. Pay attention to clauses about early repayment (penalties can be up to 1%), the bank's right to change terms, and the procedure in case of late payments. Compare the effective interest rate (EIR), as it includes all costs.
