The National Bank of Slovakia (NBS) has approved rules for gradually changing mortgage lending requirements from 2027.
The main change will affect young people buying their first home: if they meet the established conditions, they will be able to obtain a mortgage covering up to 90% of the property’s value. At the same time, the regulator will gradually tighten financing conditions for the purchase of a third and subsequent property, including properties bought for investment purposes.
The current basic LTV limit — the ratio of the loan amount to the value of the property — is 80%. Banks can, however, issue a portion of new mortgages with an LTV of up to 90%.
LTV (Loan-to-Value) is the ratio between the amount of a mortgage loan and the value of the property, expressed as a percentage. The higher the permitted LTV, the less money the buyer needs to provide from their own funds.
For example, if an apartment costs €200,000 and the bank provides a mortgage at 80% LTV, the maximum loan amount will be €160,000. The buyer must cover the remaining €40,000 from their own funds.
With an LTV of 90%, the bank can finance up to €180,000 of the value of the same apartment, while the minimum down payment would be €20,000.
Gradual Changes to the Rules
▪️ From 1 January 2027, young borrowers will be able to obtain a mortgage for their first home with an LTV of up to 90%, meaning that the down payment in such cases can be as little as 10% of the property’s value. The availability of this option will depend on whether an individual bank chooses to apply the new rules. For other borrowers, the basic limit will remain at 80%.
▪️ During the first half of 2027, banks will be able to issue up to 20% of new mortgages with an LTV of up to 90%, regardless of whether the property being purchased is the client’s first home. For a third property, the limit will be reduced to 70%.
▪️ From 1 July 2027, a stricter limit will apply to the third and each subsequent property: a mortgage will be able to cover a maximum of 70% of the property’s value. The change is linked to the growing share of investment purchases in the housing market. According to NBS, approximately one in five new mortgages is taken out by a client who already owns at least two properties.
▪️ During the second half of 2027, banks will also be able to issue up to 10% of new mortgages with an LTV of up to 90% to other clients.
▪️ From 2028, this quota will be reduced further, to 7% of new mortgages.
NBS says the changes are intended to take account of developments in the housing market and distinguish between financing a person’s own first home and purchasing property for investment purposes.
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