Slovakia changes mortgage limits from 2027: up to 90% for young first-home buyers

The National Bank of Slovakia announced a change to the share of a home's value that may be covered by a mortgage, the LTV limit. People under 35 buying or building their first home will be able to obtain financing of up to 90% of its value. Most other applicants will retain an 80% limit, while third and subsequent properties will have a 70% limit.

The rules take effect on 1 January 2027, with gradual implementation. Banks will have time to establish procedures, including checking how many properties applicants own. They will still be able to grant some loans to other customers with financing of up to 90% of the value.

According to NBS, one in five mortgages currently goes to customers who already own at least two properties. Bank Board member Vladimír Dvořáček explained that distinguishing first homes from investment purchases is intended to reduce young people's need for savings, increase investors' own contributions and ease risks to financial stability.