Serbia’s state-supported mortgage programme allows eligible younger borrowers to purchase their first homes with a deposit of just 1% of the purchase price, enabling banks to finance up to 99% of a property’s value. The scheme operates alongside other regulatory measures supporting first-home lending as residential credit continues to expand.
Under the programme, the state guarantees 20% of the insured bank portfolio during the first 10 years, while eligible housing exposures are assigned a 35% risk weight. The financing structure substantially reduces the initial equity required from qualifying buyers.
Regulatory Support for First-Home Mortgages
The National Bank of Serbia (NBS) has also introduced a permanent regulatory concession for first-home mortgages where the loan does not exceed 90% of the property’s value.
The measures are being introduced against a backdrop of strong housing-credit growth. Housing loans increased by 19.3% year on year in August 2026, adding to the financing available to residential property buyers.
Implications for Housing Demand and Supply
For banks and property developers, the programme expands the pool of potential buyers by lowering the deposit required to enter the housing market. However, easier access to mortgage financing may increase property demand rather than translate entirely into improved affordability, particularly in areas where new housing supply is constrained.
Assessing the programme’s effects will require monitoring mortgage lending volumes, new housing construction, property transactions and residential prices. The policy reduces the upfront financial barrier to home ownership, while its longer-term affordability impact will depend on the pace at which housing supply responds to additional demand.
