A house for 80 thousand euros? Here's how much the loan really costs you - Analysis/ Commissions and other expenses that increase the financial burden of the citizen
How much is the interest and monthly installment for a loan of 80,000 euros, is the question we usually ask when we want to get a home loan. However, in addition to the interest and installment, there are higher costs for the citizen behind the process of applying and repaying a loan.
These costs also include commissions paid to the bank, mandatory life and home insurance, notary and mortgage expenses.
The commissions that are always applied by all 11 commercial banks in the country are disbursement commissions, commissions for early loan repayment and penalties for late repayment. Large banks apply a smaller number of commissions than other smaller banks.
Depending on the bank where you will receive the loan, you may also have other commissions, such as the one for maintaining the loan account, commission for changing the contract and restructuring the loan.
If I want to buy a house worth 80,000 euros, the bank finances a maximum of 85% of this value, 15% will remain for me. So for a house worth 80,000 euros, the bank will only give you a maximum of 68,000 euros and I will cover 12 thousand euros myself.
For 68,000 euros, 4% interest and a repayment term of 300 months, i.e. 25 years at one of the largest banks in the country, the monthly installment would be 358 euros. At the end of 25 years, you will have paid the bank the full value of the loan you received and approximately 39 thousand euros in interest, for a total of about 107 thousand euros.
What if they also calculated commissions?
The disbursement fee, which is paid only once when the loan is disbursed, is 1% of its total value in most banks, i.e. 680 euros. If you happen to delay the loan installment by one month, you will pay another 64 euros. Also, if you close the loan before the deadline, you pay 1% on the remaining amount at the time of closing. For example, if after a few years you have 10,000 euros left, you will pay another 100 euros. In total, 844 euros in commissions in the best case.
All loan debts amount to almost 110 thousand euros, including, in a rounded manner, other notary or mortgage expenses which go over 1000 euros and further increase the burden of the loan for citizens, as well as excluding life and home insurance.
Thus, getting a loan is not as simple as it seems at first, considering the costs that arise throughout the application process and up to repayment.
Another delay for the “Made in Europe” proposal - Strong divergences among EU member states
The European Commission will again postpone the presentation of the bloc's plan to reindustrialize the European economy, the cabinet of the Commissioner for......
How much does a wardrobe "weigh" in the family budget? Albanians spend 445 million euros a year on clothing
Clothing is no longer just a seasonal necessity. It has become a consumer category that reflects lifestyle, the influence of trends, and the purchasing power......
Which areas lead the demand for rental apartments in Tirana? Investropa study shows where young people and families are moving
According to a recent study by Investropa, it highlights some interesting data regarding the price and demand of the rental market in the capital, where......
The secondary road in Arrat e Gurrës sinks, completely blocking traffic in Dragostunje i Librazhd!
The National Civil Protection Authority announces that the road segment in the Arrat e Gurrës area, in the village of Dragostunjë, which was expected to be......
Over 32 thousand vehicles inspected in January - DPSHTRR: 882 depreciated vehicles deregistered
The General Directorate of Road Transport Services announces that during January 2026, over 32,991 vehicles were inspected throughout the country, marking an......
Winter storm hits northeastern US - Schools closed and travel disrupted
Children in parts of the northeastern U.S. will stay home Monday after a powerful winter storm forced school closures and pushed offices and public......
OBP and AKPA collaborate on "social procurement": 63 employees in 9 companies winning tenders
The agreement between the Centralized Purchasing Operator (CPO) and the National Employment and Skills Agency (NESA) is becoming a concrete model of what is......
Director General of Customs, meeting with Anti-Smuggling structures: Strengthening the fight against illegality
The Director General of Customs, Besmir Beja, held a meeting with the structures of the Anti-Smuggling Directorate, conveying a clear message about......
