Terms and Conditions for Housing Loans in Montenegro for ALK Real Estates

Because of its immense beauty and wild spirit, Montenegro became one of the most attractive real estate spots, especially for Eastern Europeans. Because of the trend, some Montenegrin banks allowed non-residents to apply for housing loans. For years, the most significant problem was the interest rate which was relatively high for the standard. However, this significantly changed. Given that ALK Real Estate has positive cooperation with Hipotekarna Bank of Montenegro, there are special conditions for housing loans when it comes to real estate purchases in any ALK buildings located in Montenegro. Therefore, here are the main prospects for housing loans in Hipotekarna Bank.

Conditions for Housing Loans

The previously mentioned interest rate is considerably reduced. According to ALK personalized housing loan conditions estimated interest rate is 6.00 % with an additional six-month Euribor. Besides, the loan processing fee is up to 1 % of the loan amount. When it comes to terms for paying the loan up, it is up to 10 years with an indication that the recommended term is up to five years. Speaking of participation, it is necessary to participate with 50% of the estate value and the remaining 50% is in the form of a deposit for a loan or payment of the purchase price. The collateral in this case can be less than 40 percent and it depends on every client separately. The promissory note of the loan beneficiary and mortgage on the property to be purchased (until the conditions for registering a mortgage are met, the promissory note of the investor/seller is taken). The main purpose of the loan is the financial support for the purchase of the apartment from an investor dedicated implementation is foreseen according to the pre-contract/purchase agreement. The loan is intended for non-residents, who do not generate income in Montenegro, but also for all your interested customers, regardless of whether they are non-residents or residents.

Documentation Requirements

When it comes to documentation submitted by the client, there are some requirements to be met. First things first, there should be an insight into basic income and personal income which includes prices of employment contracts and confirmation of the income from the employer or a bank. In case you have another stream of income, there should be a contract or documentation proving another resource. In addition, future clients will also need an account card issued by the bank for information and inflows, and turnover for a period of 6 or 12 months. You are provided with an option to list a future income from the real estate rental. However, the most important piece of documentation includes documentation relevant to proving creditworthiness, which should prove cash flow for repaying the loan (for natural persons, the monthly/or annual income should be 2x higher than the monthly, and annual loan obligations). You will not be given a chance to apply for a housing loan if you do not complete the KYC questionnaire.


Terms and conditions of the bank refer to general demands and requests. However, it should be kept in mind that the bank official can talk with every client individually and create customized offers for them and make certain changes such as participation, deadlines, and others.

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