Today, banks send envelopes to 150,000 addresses where people who have a housing loan in Serbia live.
Source: MONDO/Stefan Stojanović
Today, bankers are packing envelopes for all around 150,000 people who have a housing loan in Serbia. June 30 is the date when banks “draw the line”, and now it will mean i an increase in the monthly installment for all those who secured their housing issue with a loan. June 30 is also the date when banks adjust the three-month and six-month Euribor, a date that we have as such only twice a year – in June and in December.
Installments will now be 20 to 80 euros higher than in January. Euribor is close to 4 percent, and the central banks of the world are not sending good information. The FED expects two more interest rate increases this year, so far the European Central Bank has also “blindly” followed it, and this is not a good sign for Serbia either.
Home loan installments, of course, do not increase immediately after the ECB’s decision, but every commercial bank adjusts the current installments to new installments for its clients on precisely defined dates, and one of those dates is precisely June 30. They are reconciled only twice a year, on June 30 and December 31. Three-month Euribor: installments are adjusted every 3 months, and the key dates are March 31, June 30, September 30 and December 31.
One-month Euribor: installments for these loans are adjusted every month. And what you should expect now in the envelopes that will start arriving from Monday is interest and war growth.
A jump in installments for a housing loan of 30,000 euros
Amount: 30,000 euros. Repayment term: 25 years. Interest on the day of taking the loan: 3.2 percent. Interest after June 30: 7.1 percent. Installments after January 1: 191 euros. Installment after June 30: 214 euros.
A jump in installments for a housing loan of 50,000 euros
Amount: 50,000 euros. Repayment term: 25 years. Interest on the day of taking the loan: 3.2 percent. Interest after June 30: 7 percent. Installment after January 1: 314 euros. Installment after June 30: 353 euros.
A jump in installments for a housing loan of 80,000 euros
Amount: 80,000 euros. Repayment term: 25 years. Interest on the day of taking the loan: 3.5 percent. Interest after June 30: 7.8 percent. Installment after January 1: 550 euros. Installment after June 30: 608 euros.
How much more will interest rates on housing loans rise?
Ljubodrag Savić, economistpoints out that this, unfortunately, will not be the last rate hike by the ECB this year.
“A further increase could also be 0.25 percent each, because both the ECB and the US FED and our central bank are weighing between two things. It is one thing to fight inflation with the most effective means. Considering that inflation is growing somewhere and stagnating somewhere, in any case we cannot say that it will tend to fall. If that’s the case, then yes by increasing the price of money, all central banks are fighting to reduce inflation, that is, to reduce the demand for money. When demand decreases, inflation should also decrease, theoretically“, says Savić.
Savić points out that this does not always give the expected results and notes that for most European countries, including Serbia, inflation is largely imported.
“The prices of energy, oil and gas are important, given that the European economy is largely dependent on the Asian economy.. The only way for the state to fight against this is to increase the prices of its services, and this is something that, unfortunately, will continue to rise, which is not good news for those who have loans in euros. It would eventually be good news if inflation stagnated for a while“, says Savić.
However, Savić also has an optimistic forecast that can be good for housing loans.
“I expect that the period from correction to correction of key interest rates will be slightly longer. On the one hand, the ECB is fighting inflation, and on the other hand, it is stifling production, because the high price of money means that there will be less jobs for people, and less wages, less money in the budget of those countries, so the increase in reference interest rates is always a controversial measure“, concludes Savić.
(WORLD/Blic Biznis)