Serbia housing loans face stricter rules and rising costs

Banks in Serbia are implementing stricter conditions for housing loans starting October 1. New regulations may require a minimum down payment of up to 47,000 euros, creating a significant barrier for potential property buyers.

In addition to higher entry requirements, rising Euribor rates pose a risk to existing borrowers with variable interest rates. Conservative estimates suggest monthly installments could increase by approximately 60 percent. However, officials from the National Bank of Serbia noted that preventive mechanisms and legal limits on maximum interest rates have been established to avoid the extreme volatility seen in 2023, when some installments rose by over 50 percent.