Home loans in Albania in 2026: rates, limits and costs

Most home purchases in Albania involve a loan: according to the Bank of Albania's Financial Stability Report for the first half of 2026, about 58% of the properties sold by agents were bought with bank credit. This guide sets out the rules and figures published by the banks themselves and by the Bank of Albania, checked on 2 October 2026.

How much you can borrow: the Bank of Albania limits

Under Decision no. 25 of 7 May 2025 of the Supervisory Council, these limits apply to new home loans disbursed from 1 July 2025:

• How much the bank finances (loan to value): in lek up to 85% of the value for a first home and 80% for a second home or a property to let; in foreign currency 75% and 70%.
• How large the instalment may be (debt service to income): in lek up to 40% of income for a first home and 35% for a second; in foreign currency 35% and 30%. All your debts are counted.
• Term: recommended at no more than 30 years and not beyond retirement age.

So for a 100,000 euro apartment as a first home, a loan in lek needs at least 15% from your own savings; a loan in euro, at least 25%. Loans under state housing programmes are outside these limits.

What the interest rates are

According to the Bank of Albania's monthly statistics, in June 2026 the average rate on new house-purchase loans was 3.77% in lek and 5.00% in euro. The Bank of Albania's policy rate is 2.50%.

Almost all banks build the rate the same way: an initial fixed-rate period, then a variable rate tied to 12-month treasury bills (for lek) or to the 12-month Euribor (for euro), plus a margin, with a minimum rate. The 12-month treasury bill yield was 2.62% in June 2026.

Some offers published by the banks:

• BKT: in lek 2.5% fixed in the first year for salaried clients, then treasury bill + 1.5%; in euro 3% in the first year, then Euribor + 2.5% (minimum 3.5%). Term up to 25 years.
• Raiffeisen (May 2026 terms): in lek treasury bill + 1.8% to 2.3%, minimum 3%; an offer at 4.5% fixed for 10 years. Term up to 30 years.
• OTP (April 2026): 2.9% fixed in the first year; then in lek treasury bill + 1.5% (minimum 4%), in euro Euribor + 2.5% (minimum 3.7%). Term up to 30 years.
• ABI (April 2026): in lek treasury bill + 1.5% to 3%, with a minimum of 4% to 5.5% depending on the client. Term up to 30 years.
• Union Bank: in lek from 4.2% fixed in the first year, then treasury bill + 3.3% (minimum 4.6%). Term up to 25 years.
• ProCredit (from 20 June 2026): 3.9% in the first year, then treasury bill + 3.5% or Euribor + 4%, minimum 5%.

Terms change often and depend on your income and on the bank where your salary is paid. Always ask for the pre-contract information sheet and compare the effective annual rate, not only the first-year rate.

Lek or euro?

A loan in lek currently has the lower average rate and the looser limits. A loan in euro makes sense only if your income is in euro: otherwise you carry the exchange-rate risk. Banks must notify you and offer conversion if the instalment rises by more than 20% because of the exchange rate.

Documents required

• Identity card and family certificate
• Salary certificate and bank statements; for the self-employed, the business register extract, the last two years' balance sheets and tax certificates
• A report of existing loans
• Property documents: the ownership certificate or the sale contract; for construction, the permit and the cost estimate

Costs besides interest

• Bank fee: usually 0.75% to 1.5% of the amount, often zero when you move a loan from another bank.
• Valuation: done by an independent valuer accepted by the bank and paid by you, even if the loan is refused.
• Insurance: of the property and often of your life. ABI, for example, states about 0.45–0.65% of the loan a year for life cover and 0.5–1.2% for the property.
• Notary: the loan and mortgage contracts are signed before a notary, at your expense.
• Mortgage registration at the cadastre (ASHK): under the ASHK fee list, 8,000 lek for loans up to 1 million lek, 17,000 lek for 1 to 10 million and 30,000 lek above 10 million.
• Early repayment: usually 2% when more than a year remains and 1% when less.

State-supported loans

• The soft loan: the borrower pays no more than 3% interest a year and the state budget covers the rest, in lek only and for up to 85% of the purchase value. The terms are in Intesa Sanpaolo's product sheet. Municipalities open applications with yearly quotas, through e-Albania.
• Loans at 0% interest through the National Housing Agency, under Decision no. 456 of 31 July 2025, for tenants in formerly private property, families of State Police officers who died on duty and children in state care.

Albanians abroad and foreign citizens

Several banks have separate products for emigrants, with lower financing and higher rates than for residents: ABI, for example, finances up to 50%, while Fibank finances up to 80% in lek and 70% in euro, and accepts foreign citizens as well. A work contract and a residence permit in the country where you live are required.

Once you know your budget, browse homes for sale and read about the 2026 reference prices, which determine the tax on a sale.

This article is for information and is not a loan offer. Only the bank gives the final terms.