Obtaining a Mortgage in Montenegro: As a professional real estate agent working in Montenegro, I receive this question often. “Can a foreigner obtain a mortgage from a bank in Montenegro to purchase property?” An instant google answer will say yes, but what happens in theory and in practise are two very different things.
In theory, looking at a few of the big banks in Montenegro, all their websites will indicate that mortgages are available to foreigners with a 50% deposit. While I am not saying it is impossible to obtain, what I are saying is that it will not be easy and may not be possible.
As time is passing, the standards and requirements are becoming more strict on banking and foreigners. This can be seen in obtaining a bank account without any credit. Now, add a credit facility to the mix – it will add a whole host of requirements and procedures.
Much will depend on factors such as nationality, do you already have a bank account, how long have you been in Montenegro, do you have temporary or permanent residency, your assets, how big of a down payment, etc., etc. In the bigger picture, you are a foreigner asking for money in a foreign country. This hurdle is not isolated to Montenegro alone.
So what to consider “realistically” when applying for a Mortgage?
- Firstly, the property will have to be built and “habitable”. Banks will be unlikely to finance a purchase for a property off-plan (not yet built), or that is incomplete. You may qualify for properties close to completion from a reputable developer or what the bank deems a “safe” investment.
- The realistic expectation for a mortgage will be a downpayment of at least 60 – 70% of the purchase price.
- You will need to be able to provide proof of income/finance, and three years worth of personal financial statements.
- Every application is assessed individually and an outcome determined by the bank.
There is no fast of fixed procedure or requirements, and these change all the time and at any time. It will be up to the bank to which you are applying at whether they are providing loans, and what is needed. You are welcome to contact us and request which banks have been the most cooperative and willing to assist foreigners.
A great alternative would be to purchase a property off plan from a developer and negotiate a payment plan. Considering the percentage of the purchasing price banks allow for a mortgage application, this might be a great option. We also have developers who assist with mortgages up to 50%. This is because of their relationship with the bank and the trust the bank has in the developer.
Contact us for any questions you may have or any property needs you may want to explore in Montenegro.
PLEASE NOTE: While we are not representatives of the banks, nor mortgage broker, we write only based on experience and information received from the banks. It will be best to meet with your chosen bank to discuss in detail and view your options as other than the bank, NO ONE will be able to give you a definite answer or requirements. This serves as a mere guide and what can be expected.
