Insurance Premium

The amount of insurance premium depends on which model has been chosen.

Model 1 – mortgage on the immovable property which is to be purchased

LTV ratio is made of the bank loan amount and the value of the immovable property to be purchased and mortgaged times 100.

Model 2 – mortgage on another immovable property

LTV ratio is made of the bank loan amount and the estimated value of the immovable property to be mortgaged times 100.

This model offers home loan insurance without an advance and/or deposit provided that the estimated market value of the mortgaged immovable property does not exceed the loan amount by at least 30% (loan amount times 1.3).

LTV ratio for home loans (purchase, construction and adaptation) that are secured by second mortgage is made of the remaining amount of bank loan, not yet repaid,  secured by first mortgage, the amount of bank loan secured by first mortgage and the purchase price of the immovable property to be mortgaged times 100, that is, the total amount of not yet repaid portion of the loan secured by first mortgage and the bank loan secured by second mortgage and the estimated value of the immovable property which is to be mortgaged times 100.

Calculations for Models 1 and 2:

Head Currency Index

LTV≤70

70<LTV≤80

80<LTV≤90

EUR

1.50%

2.50%

3.50%

CHF

1.95%

2.95%

3,95%

* if the borrower does not hold life insurance against risks assigned to the bank, the premium amount will be increased by 0.25%

*if the mortgage is established on the so called ‘building under construction’, the premium will be increased by 0.5%

 

 *if the mortgaged property is legalised in accordance with the minimum technical documentation, as defined by the Law on Planning and Building,  the premium will be increased by 0.15%

 

 *if borrower’s/co-borrower’s debt to income ratio is equal or higher than 60%, the premium is increased by 0.5%.

 

*if borrower’s/co-borrower’s debt to income ratio is equal or higher than 70%, the premium is increased by 1%.

 

 *    if borrower’s/co-borrower’s debt to income ratio is equal or higher than 80%, the premium is increased by 1.5%, only when 80% or more is contracted in RSD.