In the past few years, the home loaning is the fastest growing segment in the bank’s loan portfolio. The Central Bank informs that the annual rates of increase of home loans, which represent 15 percent of the loan portfolio, are significantly above the average growth of total loans for households, where the annual rate of growth is around 10%.

According to the latest data, the home loans represent 29,4% of total loans for physical persons (in comparison, 5 years ago this was 24,8%).

When we asked whether there is room for a further growth of the home loans, as the market is full of unsold apartments, and at the same time there are families that still cannot afford to purchase an apartment, the Central Bank states that it should be taken into account that when the banks make decisions about their loan policies they are careful when analyzing the risk.

“Even though the home loans are considered as less risky loan products, still they also carry risks tot he banks that are related to the life cycle of these products, that is very long and that creates a bigger uncertainty for the banks (and a bigger risk with them) about the regularity of servicing the obligations on part of the clients, including the value and the frequency of payment” states the Central Bank