Interest Only Mortgage Loan

Product description

Mortgage loans are used to meet individuals’ personal needs, such as buying, building, or improving a home. This product can benefit not only individuals but also self-employed professionals (doctors, dentists, pharmacists, lawyers, etc.) who want to buy or build their work premises, or individuals who generate income from employment and want to purchase a unit for investment purposes (rent). Refinancing granted for the above-mentioned purposes from other banks.

Home Purchase Loan / Home Construction Loan
Shop Purchase Loan / Shop Construction Loan

Financing can reach up to 80% of the market value of the property offered as collateral, but not more than 80% of the price specified in the sale-purchase contract.
 

General information

Second-level banks generally use the 1-year Treasury Bill rate as the base rate for calculating interest on loans in Lek, while for loans in Euro they use the 1-year Euribor rate.
“Treasury Bill” – is a negotiable debt instrument with a maturity of up to one year, issued and guaranteed by the Government of the Republic of Albania. Treasury Bills are issued in the national currency (Lek) and have maturities of 3, 6, and 12 months. Auction results for Treasury Bills are announced on the same day of the auction and published on the Bank of Albania’s website:
www.bankofalbania.org

Example:
1-year Treasury Bill rate on 31.10.2025: 2.5%
 

Terms and Conditions

Interest rates
 
Type of product Customer Category
Home Loan/House Construction Loan Salary Paid Customers in BKT: 4% fixed for the first year then 1Y T-Bill +2% not less than 4% (changing each 12 months)Other Customers: 4.5% fixed for the first year then 1Y T-Bill +2.5% not less than 4.5%(changing each 12 months)
Shop Loan/Shop Construction Loan Salary Paid Customers in BKT: 4.5% fixed for the first year then 1Y T-Bill +2.5% not less than 4.5% (changing each 12 months)Other Customers: 5% fixed for the first year then 1Y T-Bill +3% not less than 5% (changing each 12 months)
Financing Criteria and LTV
 
  Financing Criteria (Loan Amount/ Investment Value): LTV (Loan Amount/OMV)
Home Loan/House Construction Loan Up to 80% Up to 80%
Shop Loan/Shop Construction Loan Up to 80% Up to 75%
 
  Up to 25 Years
Loan Maturity
Interest Only Period Loan Maturity
3 years Min 11 years - Max 25 years
4 years Min 14 years - Max 25 years
5 years Min 18 years - Max 25 years
6 years Min 21 years - Max 25 years
7 years Only 25 years
Currency ALL
Maximum Loan amount Up to 50,000,000 ALL
Prepayment Commission 0% for partial and total loan liquidation. Partial loan liquidation should be done in the system on the instalment date.
Disbursement Commission •1%

•0% for loan purchased from other banks.
Customers may choose life insurance or accept a higher interest rate. If the customer chooses not to take life insurance:

If the customer is up to 45 years old, the interest rate will be 0.5% higher.
If the customer is over 45 years old, the interest rate will be 1% higher.

Please download the appropriate documentation of Interest Only Mortgage Loans 
Please download the standardized Pre contractual Information Form.