New Act encourages state loans of 100-300 euros per square meter to purchase a flat. The amount of the loan depends on the price, the longest repayment term is 30 years and the longest grace period 20 years, the annual interest rate is 2% for the grace period and 5% for repayment period. The interest will not be taxed. The user may at any time terminate a grace period or repayment and pay the balance as a whole.
During 2009 there has been a stagnation in the real estate market in Croatia, and similar continued in 2010. One of the main reasons for stagnation is the decline in the purchasing power of citizens. This Law regulates the granting of loans from state funds when purchasing a flat. State funding was secured from the State budget and the final amount will be determined by the Croatian Government. The loan, of course, is repayed in the favor of the State budget. Enactment of the Act should enable the builders to use funds obtained from the sale to start a new cycle of building and give favorable credit terms to customers with state help.
The loan is approved by the Agency for Transactions and Mediation in Real Estate, which performs all other duties related to Loan Agreement. An applicant for a loan must submit a copy of the identification card, purchase agreement for the flat, proof that he has secured funding, a copy of the document for the use of buildings and public notary certified statement that he owns no flat or has only one apartment that is for sale, and if you are married a statement that the spouse has no flat. Complete application for a loan is one that from the time of submission contains all the contributions required by law. Users of the loan that do not respond to the invitation to contract loses the right to contract. The Loan Agreement shall contain a statement which allows registration of a mortgage on the property.
The amount of loan that is granted in any particular case depends on the price per square meter:
€ 300 to € 1000
€ 250 from € 1,001 to € 1,150
€ 200 from € 1,151 to € 1,300
€ 150 from € 1,301 to € 1,450
€ 100 from € 1,451 to € 1,600