What to remember
- The cash contribution also depends on the bank valuation.
- Budget for purchase costs as well as repayments.
- Check the follow-on rate and your income currency.
Down payment and property value
The bank finances a share of the property value it accepts, and you fund the remainder. The seller’s price and the bank’s valuation may differ. Ask which value is used, what amount can be financed and how much cash you need. The advertised maximum is not a personal approval; property, income, currency and purpose can affect the terms.
Budget beyond the payment
Request valuation, notary, registration and insurance costs where applicable. Keep funds for the down payment and other expenses separate. A longer term can reduce monthly payments while increasing total interest.
Income currency
If you earn in lek and borrow in euros, exchange-rate changes affect the lek amount you pay. Explore exchange-rate and interest scenarios; today’s example does not guarantee future payments.
How much cash do you need upfront?
Assume a EUR 100,000 purchase price, a EUR 90,000 bank valuation and financing equal to 80% of that valuation. The loan would be EUR 72,000, leaving EUR 28,000 of the purchase price to fund yourself, before other costs. This is an exercise, not a lending limit. Ask the bank for the calculation for your property.
| Budget item | Illustrative amount |
|---|---|
| Purchase price | EUR 100,000 |
| Loan: 90,000 × 80% | EUR 72,000 |
| Your purchase contribution | EUR 28,000 |
| Notary, valuation, registration, insurance | Request separate amounts |
Illustration, not a bank offer. These figures are assumptions used to explain the calculation.
Income and property documents
Prepare proof of income and the property documents. For example, ABI lists identification, income evidence, the purchase contract and property records; the exact list depends on the case and collateral. For construction or renovation, ask about additional documents and when funds are released. A co-borrower must understand the obligations they accept.
Read what happens after the initial rate
An attractive first-year rate does not describe the whole mortgage. Ask for its duration, the follow-on formula, reset frequency and any floor. Review the repayment schedule and try a higher-rate scenario. If income is in lek and borrowing in euros, also test an adverse exchange rate: both changes can happen together.
Before signing
Get a written offer for your amount, term and currency. Separate one-off costs from monthly or annual charges, and ask about early repayment and recurring insurance. Check that the approved amount and release date match your purchase commitments. A website estimate or initial discussion is not final approval.
Questions to take to the bank
Use this list when requesting your written offer.
- Which property value do you use, and how much must I contribute?
- What do I pay upfront and renew each year?
- Are the property documents accepted, and when are funds released?
- What is the payment after the initial period?
Frequently asked questions
Is having a job enough?
The bank assesses income, other debts, the property and product conditions. Employment or a particular salary does not guarantee approval.
Is the purchase price the bank valuation?
Not necessarily. Request the valuation and financing calculation before deciding how much cash you need.
Sources and examples
ABI Bank: home-loan terms and documents ↗
Links beside specific explanations identify their official sources. Worked examples are educational assumptions, not bank offers. The bank confirms the terms for your situation.