Housing loan for EU Citizens

A housing loan is intended for all foreign clients, EU member states citizens, who are of age, who are employed or retired (and receive their salary, pension or annuity to their transaction bank account) and will not be over 75 years old at the end of the repayment period.

• personal advice in the search for the right housing loan;
• the option of a fixed interest rate, which provides safety, since the interest rate is the same for the whole period of loan repayment, so that you are not exposed to the risk of reference interest rate growth (e.g. Euribor);
• loan, insured by mortgage in the amount of 70 % of value of the property you pledge;
• following and repaying the loan via SKB NET- for holders of an SKB personal account.

Why is SKB housing loan the right choice?

• The option of obtaining a loan in Euro for the period of 25 years and with the option of insurance by mortgage on property for which the loan was taken;
• loan repayment is carried out through a personal SKB account with the option of choosing repayments on 8th, 18th, 28th or the last day of the month;
• possible loan repayment amount of up to 50 % of net salary, pension or annuity, according to the amount of your regular net income;
• a housing loan can be taken for purchasing, building or renovating a house, an apartment or a weekend-house.

Which conditions do you have to fulfil in order to obtain a housing loan for foreign clients?

• The property which is the subject of financing is situated in the Republic of Slovenia;
• opening of an account in SKB from which you will make monthly payments to settle loan liabilities;
• designation of a person in Slovenia (the client or an authorised person) and address in Slovenia for postal delivery;
• in case of purchasing property, the amount of loan represents the final part of the property purchase price. For the remaining part of the investment, the borrower has to submit proof on the origin of money for payment of the remaining part of purchase price (order or contract on already executed payment or proof of deposit).

How do you insure the loan and the property?

• Loan collateral is possible by mortgaging unencumbered property which can be pledged or sold according to applicable regulations and which is situated in the territory of the Republic of Slovenia. It is also possible to pledge the property which is the subject of purchase;
• insurance of the property which is the subject of collateral is obligatory. The property has to be insured until the loan is repaid, at least for the case of fire and escape of water. Insurance policy has to be pledged in favour of SKB bank.

What do you need to know before concluding a contract for a housing loan?

• Costs for translation of a notarial record and court interpreter if the borrower does not understand Slovenian are not included in the contractual calculation of EOM;
• for concluding mortgage loan contract, for notary hearing and in case of a lawsuit, the Slovenian version of the loan contract applies;
• in case of a lawsuit, laws applicable on the territory where the real estate pledged is situated (i.e. in Slovenia) apply.

Which costs are incurred when taking a housing loan?

• Loan approval fees: 1.5 % of loan amount, a minimum of 70 EUR and a maximum of 349 EUR;
• costs of insurance by mortgage (actual costs of insurance which are incurred by pledging the property and are not included in EOM) include costs of legal services, if an authorised lawyer of the bank checks and prepares everything for mortgage registration in the name of the bank, costs of notary services according to notary fees, costs of lien entry, costs of extract from the land register;
• costs of real estate insurance according to Generali insurance company price list. Costs are not included in the calculation of EOM.

In order to obtain a housing loan, you need:

• personal identity document (identity card or passport);
• tax identification number;
• loan documents.

What do loan documents for loan approval include?

• Purchase contract and/or other special purpose documents;
• personal account statement for the previous 6 months (with the address of the outlet and the account number);
• savings account statement for the previous 3 months, if the client is saving for the remaining part of purchase price;
• income certificates (according to employment status):
  • for the employed:
    • pay slips for the last 6 months;
    • contract of employment or a document showing employment status and period (definite, indefinite);
    • W2 form for the last 2 years (wage and tax statement) or a copy of the latest tax return;
    • certificate on valid salary for the last 2 years and payment of dividends for the last 2 years (employed in a company with limited liability and with ownership share larger than 20 %;
  • for retirees:
    • pension slips for the last 6 months;
  • for everyone:
    • a copy of contract or a copy of bank statement with indicated received payments and a copy of the latest tax return;
  • certificates on debts, if you have any:
    • mortgage extract for the last 2 years;
    • details on personal loan;
    • a copy of lease contract;
    • payment of alimony / maintenance allowance.

What do special purpose documents include?

Loans for purchasing a residential house, apartment or a weekend unit:

• purchase contract certified by a notary;
• extract from the land register or a document which indicates ownership.

Loans for purchasing undeveloped building land:

• purchase contract certified by a notary;
• final and binding decision of municipal authority that the spatial implementation act allows construction of a residential house on the land and that there is no pre-emption right.

Loans for developing building land:

• extract from the land register or a document which indicates ownership;
• final and binding decision of competent municipal authority on assessment of building land development fee.

Loans for building a residential house, apartment or weekend unit:

• building permit;
• extract from the land register or a document which indicates ownership:
  • planning information for loft conversion (it is sufficient if loft conversion is foreseen in the original building permit);
  • pro-forma invoice(s) and/or invoice(s);
• appraisal of the property by an official appraiser from the Audit Institute or a licensed appraiser of the building trade.

Loans for renovating a residential house, apartment or a weekend unit:

• building permit or planning information;
• extract from the land register or a document which indicates ownership;
• SKB form for renovation (you can obtain and complete it in an SKB outlet):
  • pro-forma invoice(s) and/or invoice(s).