Buying a property is one of the most important decisions in life, and for most citizens in Croatia, this path inevitably leads through a bank loan. Although the process may seem daunting at first glance due to the extensive documentation and administrative requirements, with good preparation and knowledge of the key steps, the path to your own home can be very predictable and safe. In this guide, we bring you a detailed overview of the process of buying a property through a loan, aligned with the current conditions for 2026.
1. First step: Checking your creditworthiness
Before you even start looking at apartments or houses, the most important thing is to visit a bank. Creditworthiness is not just the amount of your salary; it includes an analysis of your income, existing debts (such as card limits or other loans), and your payment history (insight into HROK).
RESIDENT Nekretnine advises you to visit at least three different banks because the terms, interest rates, and fees vary significantly. The general rule is that the monthly loan installment should not exceed 30-40% of your net income. Knowing the exact amount that the bank can approve you, you define your realistic budget and avoid disappointment.
2. Choosing a property and legal verification
When you find the ideal property, it is crucial to check its "cleanliness". The bank will not approve a loan for a property that does not have proper paperwork. This includes:
Ownership certificate: Checking whether there is a burden or active seal on the property.
Legality: An occupancy permit or a Certificate of Deed are mandatory.
Condominium: For apartments, it is important that the property is registered as a separate unit.
Energy certificate: must not be older than 10 years
It is advisable to hire a lawyer or a licensed real estate agency who will check the entire legal status to avoid risks such as unresolved property-legal relations or marital assets that are not visible in the title deed.
3. Preliminary contract for the purchase and sale of the property and down payment
After you are sure of the paperwork, a preliminary contract for the purchase and sale of the property is signed. It defines all important items - price, deposit, terms of sale and payment deadline. When signing the pre-contract, it is customary to pay a deposit in the amount of 5% - 10% of the agreed purchase price. The pre-contract may or may not be certified by a notary public.
4. Real estate valuation
This is one of the most critical steps. The bank hires an authorized appraiser who goes out into the field to determine the market value of the property. It is important to know that banks often do not finance the full amount of the appraised value (LTV ratio). Most often, 80% to 90% of the estimated amount is approved, while you have to cover the rest with your own participation. Also, keep in mind that the appraised value may be lower than the agreed sale price, meaning you'll need to have more equity to cover the difference.
5. Application processing and loan approval
Along with the real estate appraisal and the pre-contract for the sale of real estate, you provide the bank with income documentation (payslips, employer's certificates). If you are a craftsman or a freelancer, the procedure is somewhat more complex and requires tax solutions. After the bank approves the loan, it prepares Loan Agreements for you (usually 7-8 copies) which then need to be solemnized by a notary public.
6. Real Estate Purchase Agreement and Loan Agreement
Most often, the Real Estate Purchase Agreement is certified by a notary public at the same time as the Loan Agreement. Solemnization is a mandatory step by which the Loan Agreement acquires the force of an enforceable document, and the cost depends on the loan amount (usually from 400 euros and up).
7. Registration of the mortgage and payment of funds
After the Loan Agreement is solemnized, the notary public submits a request in the land registry to register a lien (mortgage) on the real estate being purchased in favor of the bank. Only when the bank receives a decision that the mortgage is registered in the first place, does the payment of funds follow to the seller's account. We would like to point out that the bank is always the last payer, and if the loan agreement stipulates that part of the purchase price will be paid from your own funds, you must always make that payment first and submit a payment receipt to the bank.
8. Tabular statement and ownership registration
After the seller receives the entire amount of the agreed purchase price, he issues you a Tabular statement - a document confirming that the property has been paid in full and allows you to register the ownership rights without any further consent. With this Tabular statement and the Real Estate Purchase Agreement, you go to any notary public and submit a request to register the ownership of the property in your name (costs approximately 50 euros). As a rule, the registration is carried out within 5-10 days.
9. Handover of the property
The last step in the process is the handover of the property, all keys and the transfer of utilities to the new property owner.
Hidden costs to consider
Buying on credit brings additional costs that buyers often ignore in their initial calculations:
- Real estate transfer tax: It amounts to 3% of the market value