The central bank cuts the term for a second flat to 25 years, while a first flat with a 10% down payment costs more than it looks

From December 1, 2026, anyone buying a second or any further flat on credit will have at most 25 years to pay it off, instead of the current 30. The National Bank is also lowering the permitted ratio between a borrower's monthly debt repayments and monthly income. For a first home the term stays at up to 30 years, and the minimum down payment at 10%, as it has been since December last year.

Governor Trajko Slaveski says flats and houses should first and foremost be places to live, and only then an investment. According to the National Bank, first-home loans now make up around 25% of all approved housing loans, and the Skopje flat price index shows a slowdown: annual growth in the third quarter was 10.3%, after 13.4% in the second and 16.6% in the first quarter.

What 10% really means

The first-home measure looks like relief, and at the start it really is. But the calculation shows the other side too. For a 100,000-euro flat, over a 30-year term with an illustrative fixed interest rate of 3%, a buyer putting down 10% needs to save 15,000 euros less up front than one putting down 25%. In return, they take a bigger loan and over 30 years pay around 7,800 euros more in interest, not counting fees, insurance and other costs.

So the measure doesn't make the flat cheaper. It shifts the weight from today's savings to future instalments. For a young family that has been paying rent for years and can't put together 25,000 euros, it may still be the only road to a home of their own. It just isn't a gift.

A second flat isn't always a luxury

The stricter rules for second flats are aimed at investors. But they will also hit families whose flat has become too small, because the family has grown or the children have grown up, and who want a bigger flat while keeping the first one. A shorter term means a higher monthly instalment, and a stricter ratio means the bank will require a higher income to approve the loan. On the other hand, a shorter term also means less interest overall.

The National Bank can tighten lending, but the price per square metre is set by sellers and developers. If growth of 10.3% in a year counts as "stabilisation", the question is - stabilisation for whom: for the market, or for the wage that has to catch up with it?