The Housing Finance System

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    A. Primary Housing Finance Market

    A.1 Industry Structure and Performance
    VariableEnd of 2016End of 2015End of 2014SourcesVar ID
    Types of originating lenders/market share:A.1.2
    Level of Non-Performing Mortgage Loans (90 days or more past due):A.1.6
    Average 1997-2007 A.1.7
    A.2 Size of Mortgage Finance Sector
    VariableEnd of 2016End of 2015End of 2014SourcesVar ID
    Total amount of home mortgage loans outstanding at the end of year in millions of USD:808.85 USD (millions)805.76 USD (millions)889.43 USD (millions)
    Bank of Albania
    		A.2.1
    Total amount of home mortgage loans outstanding at the end of year as % of GDP (current)6.82%7.84%7.84%
    WDI, Bank of Albania
    		A.2.1.1
    and as % of all credits outstanding19.06%18.95%18.66%
    Bank of Albania
    		A.2.1.2
    A.3 Housing Finance Products
    VariableEnd of 2016End of 2015End of 2014SourcesVar ID
    Mortgage products as % of all mortgages (approx.) in local currency:A.3.1
    Most prevalent type of foreign currency mortgage used:A.3.3
    Most frequent interest rates on fully amortizing:A.3.4
    Typical lender fees associated with mortgage origination: A.3.6
    as % of loan amount1.1%1.1%1.1%
    Banka Kombetare Tregtare
    		A.3.6.2
    Typical third party fees associated with mortgage origination:A.3.7
    Appraisal fees137.5 USD 137.5 USD 137.5 USD
    Banka Kombetare Tregtare
    		A.3.7.1
    Loan-to-Value (LTV) on first mortgage: A.3.8
    Maximum LTV100.00100.00100.00A.3.8.1
    Maximum term over which pmt is calculated? 25 years25 years25 yearsA.3.9
    Mortgage pmt-to-income ratio A.3.10
    A.4 Lending and Servicing Process
    VariableEnd of 2016End of 2015End of 2014SourcesVar ID
    Which institutions define underwriting rules? A.4.2
    A.5 Credit Risk Assessment
    VariableEnd of 2016End of 2015End of 2014SourcesVar ID
    Do credit bureaus exist? YesYesYes
    Bank of Albania
    		A.5.2
    Are there legal/regulatory constraints to gaining access to credit information?NoNoNo
    Bank of Albania
    		A.5.2.1
    B. Funding Sources for Mortgages and the Secondary Mortgage Market
    VariableEnd of 2016End of 2015End of 2014SourcesVar ID
    What are the main funding sources for mortgages?B.1
    Retail funding (deposits/other)primaryprimaryprimary
    IMF
    		B.1.1
    C. Housing Microfinance
    VariableEnd of 2016End of 2015End of 2014SourcesVar ID
    Types of lenders operating in the housing micro-finance (HMF) sector:C.2
    Level of NPLs (>90 days past due) in HMFC.4
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    Notes:
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    Notes: (2010 = 100)
    Notes: (2010 = 100)
    Notes: (2010 = 100)
    Notes: (2010 = 100)
    Notes: (2010 = 100)
    Notes: (2010 = 100)
    Notes: (2010 = 100)
    Notes: (2010 = 100)
    Notes: Data is derived from the State Department's Office of Investment Affairs' Investment Climate Statement.
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: Except in northern rural areas where customary law prevails
    Notes: IMF estimate
    Notes: low-cost housing, mortgage interest subsidy, social housing, housing allowance
    Notes: low-cost housing, mortgage interest subsidy, social housing, housing allowance
    Notes: Mortgage costs – can be around 2% of the property value
    Notes: Mortgage costs – can be around 2% of the property value
    Notes: Mortgage costs – can be around 2% of the property value
    Notes: Purchase tax (and notary fees) come to around 1% when purchasing property in Albania. VAT is applied at the rate of 0% on new build Albanian property.
    Notes: Purchase tax (and notary fees) come to around 1% when purchasing property in Albania. VAT is applied at the rate of 0% on new build Albanian property.
    Notes: Purchase tax (and notary fees) come to around 1% when purchasing property in Albania. VAT is applied at the rate of 0% on new build Albanian property.
    Notes: Rental income tax is levied at 15%
    Notes: Rental income tax is levied at 15%
    Notes: Rental income tax is levied at 15%
    Notes: Source: Bank of Albania Statistical Report - December '11 Household loans by purpose and currency. Real Estate (in millions ALL) = ALL (22238.3) + USD (1796.0) + EUR (64177.6)
    Notes: Source: Bank of Albania Statistical Report - July '13 Household loans by purpose and currency - Real Estate (in millions ALL) = ALL (27782.7) + USD (1756.7) + EUR (70107.7)
    Notes: Source: Bank of Albania Statistical Report - July '13 Household loans by purpose and currency - Real Estate (in millions ALL) = ALL (30285.5) + USD (1606.5) + EUR (68167.1)
    Notes: Source: Bank of Albania Statistical Report - July '13 Household loans by purpose and currency - Real Estate (in millions ALL) = ALL(33014.8) + USD (1354.1) + EUR (66055.3)
    Notes: Source: Bank of Albania Statistical Report - November '12 Household loans by purpose and currency. Real Estate (in millions ALL) = ALL(25591.3) + USD (1846.1) + EUR (70031.3)
    Notes: Source: Bank of Albania Statistical Report - September '10 Household loans by purpose and currency. Real Estate (in millions ALL) = ALL (17508.4) + USD (2141.8) + EUR (46223.3)
    Notes: Table 1.4.8 Private Households by tenure status, ownership of occupied dwelling and by urban area 2011-2011 Total Urban = 409309 Total Owner Occupied Units = 8493 + 362191
    Notes: The "Low-cost housing" (LCH) project provides homes for low income families. Homes are priced equal to the construction cost with a 3% annual interest rate.
    Notes: The "Low-cost housing" (LCH) project provides homes for low income families. Homes are priced equal to the construction cost with a 3% annual interest rate.
    Notes: The "Low-cost housing" (LCH) project provides homes for low income families. Homes are priced equal to the construction cost with a 3% annual interest rate.
    Notes: The "Low-cost housing" (LCH) project provides homes for low income families. Homes are priced equal to the construction cost with a 3% annual interest rate.
    Notes: The "Low-cost housing" (LCH) project provides homes for low income families. Homes are priced equal to the construction cost with a 3% annual interest rate.
    Notes: The "Mortgage interest subsidy" (MIS) program provides loans with the interest subsidized. The loan is originated by private banks but the subsidy is provided by the state. This program is targeted for teachers, public employees, and those with medium income.
    Notes: The "Mortgage interest subsidy" (MIS) program provides loans with the interest subsidized. The loan is originated by private banks but the subsidy is provided by the state. This program is targeted for teachers, public employees, and those with medium income.
    Notes: The "Mortgage interest subsidy" (MIS) program provides loans with the interest subsidized. The loan is originated by private banks but the subsidy is provided by the state. This program is targeted for teachers, public employees, and those with medium income.
    Notes: The "Mortgage interest subsidy" (MIS) program provides loans with the interest subsidized. The loan is originated by private banks but the subsidy is provided by the state. This program is targeted for teachers, public employees, and those with medium income.
    Notes: The Capital Gains tax rate is 15% and that is levied on sales price minus acquisition cost and expenses.
    Notes: The Capital Gains tax rate is 15% and that is levied on sales price minus acquisition cost and expenses.
    Notes: The Capital Gains tax rate is 15% and that is levied on sales price minus acquisition cost and expenses.
    Notes: The fee ranges from $75-200
    Notes: The fee ranges from $75-200
    Notes: The fee ranges from $75-200
    Notes: The fee ranges from $75-200
    Notes: The fee ranges from $75-200
    Notes: The fee ranges from 0.2-2%
    Notes: The fee ranges from 0.2-2%
    Notes: The fee ranges from 0.2-2%
    Notes: The fee ranges from 0.2-2%
    Notes: The fee ranges from 0.2-2%
    Notes: The fee ranges from 0.2-2%
    Notes: The fee ranges from 0.2-2%
    Notes: The fee ranges from 0.2-2%
    Notes: The fee ranges from 0.2-2%
    Notes: The Real Property tax is dependent on location, property type and value of the home.
    Notes: The Real Property Tax is dependent on location, property type and value.
    Notes: The Real Property Tax is dependent on location, property type and value.