The National Mortgage Insurance Corporation (NMIC), a relatively new institution on the housing loan market in Serbia. It was founded by the Government in 2004 pursuant to the Law on the NMIC. The concept was created with the assistance of the Canada Mortgage and Housing Corporation (CMHC), an institution with a 50-year experience in this industry which has certainly contributed to excellent functioning of the mortgage loan market in Canada.

During its short existence and through its performance, the National Mortgage Insurance Corporation has influenced improvements of the conditions governing the housing loan market in Serbia. Besides, implementing the long-term housing programmes of the Government of Serbia, we have had a positive effect on the increasing number of first-time home buyers in Serbia.


The National Mortgage Insurance Corporation insures banks against default with mortgage housing loans approved to physical persons to buy, renovate or build property.  So far we have entered mortgage default insurance contracts with 23 banks in Serbia.  According to these contracts commercial banks offer loan insurance to each borrower if he/she meets the requirements set by the NMIC. By approving insurance of a loan the NMIC agrees to take on a portion of the default risk which practically means that 75% of the related bank’s net loss is taken over by the NMIC. Thus, the total risk of the bank is cheaper.

In addition, the NMIC takes part in implementation of Government programmes on subsidising housing loans from the budget of the Republic of Serbia.  Depending on the programme, the number of participating banks may vary. Apart from the original subsidy programmes, many various programmes have been launched since 2008, like: subsidy for medical stuff or professional army officers.