Mortgage loans up by 3.1 bln ALL in January
Lending for housing went up to 105 billion ALL in January this year. According to data from the Bank of Albania, compared with the previous year mortgage loans increased by 3.1 billion ALL, or about 3%.
In fact, the growth may be somewhat higher, but a slight impact may stem from the depreciation of the euro against the local currency, Albanian Lek, ALL.
Bank of Albania reports its statistics in local currency, but mortgage loan portfolio is mostly based on the euro currency. This prompts the total amount to be sensitive to exchange rate fluctuations.
Mortgage loans were significantly driven last year by a drastic reduction of interest rates, both in the domestic currency and in euro.
Interest rates, which in the first few years start from 2%, have caused many families to take advantage of favorable market conditions in order to buy an apartment.
According to the Bank of Albania, the interest rates on mortgage loans has touched the lowest historical levels.
In January, the interest rate of mortgage loans for individuals was 7.54%, while the same interest rate in euro was at the level 3.92%.
Real estate lending is among the most promoted products by banks.
Mortgage loans have the lowest ratio in the non-performing loans portfolio, and make up the most qualitative segment in crediting.
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