New rules from the Bank of Albania take effect this week, setting stricter limits on home loans.
Buyers will no longer be able to finance 100% of a property’s value through a bank loan.
For the first home in Albanian Lek, banks can finance up to 85%, and up to 80% for a second home.
For foreign currency loans, the limit is even lower: 75% for the first home and 70% for the second.
Monthly loan payments must not exceed 40% of income for Lek loans and 35% for foreign currency loans.
The goal is to protect borrowers from excessive debt and currency fluctuation risks.
With growing interest in property purchases especially from foreigners and emigrants, this decision also serves as a warning to slow down the sharp rise in real estate prices.
