Buying real estate in Croatia
Before we talk about how to get a mortgage in Croatia, here are some key elements about the Croatian real estate market. Real estate prices in Croatia decreased significantly from 2008 to 2015. Yet, as they’re going up, you may want to invest in Croatia now. Especially as the price per square meter in Zagreb is relatively cheap (€1,800/m2).
How to get financed to buy a property in Croatia?
Financing the acquisition is a first step to think about, unless you plan to buy all-cash. Ideally, the real estate agent should be able to give you the name of a few bankers to help you get a mortgage. However, here is an article to help you.
Should you look for a mortgage in your home country, or in Croatia?
Before you consider to contact banks, you need to consider whether you will contract the mortgage in your home country, or in Croatia. Some posts on Expat.com are clear warnings, advising not to take a mortgage in Croatia: “Don’t even consider a mortgage in Croatia. No such thing as fixed rate for set amount of years. Lenders can raise your interest rate whenever they please.”
I can not confirm those declarations as I haven’t bought a property in Croatia myself.
However, as I bought 2 properties abroad already (France, Spain), what is certain is that when buying abroad, getting a mortgage in your home country can also be a good option because:
- Your income is earned in your home country
- Signing papers in Croatian, and facing a different system can sometimes be daunting
So first thing for you might be to consider banks at home, and check your financing options there. However, if you still want to consider banks in Croatia directly, here are some suggestions based on my research.
Banks in Croatia
Erste Bank
Erste Bank is the one who does most of the foreigner lending services, according to real estate agents from Century21 Croatia that I interrogated. On their website, you will see that they advertise housing loans for foreigners with the following conditions:
- Variable interest rates
- Up to 20 years
- Up to 250,000 euros
Although this might not be the best financing option, it is definitely one of the top used, worth considering. Check their website using the link below, to see more detailed conditions.
HPB – Hrvatska poštanska banka
Another option is HPB. They advertise housing loans with the following conditions:
- Maximum 265,000 euros
- Repayment up to 30 years
- Repayment before you’re 67 years of age
ZABA – Zagrebacka Bank
Another popular option, and a bank offering a website in English and conditions for home loans similar to its competitors: ZABA, also known as Zagrebačka banka.
OnlineMortgageAdvisor
Another solution I could find was a British company, positioning on this topic of mortgages abroad and in Croatia in particular. To check out their conditions, just follow the link below.