Since October 1, 2026, housing loans have officially become more expensive. Erste banka raised interest rates by an average of 0.25 percentage points, and the Croatian National Bank (HNB) simultaneously tightened lending conditions. Real estate prices continue to soar, and loans are becoming increasingly unaffordable. Here is an overview of the numbers, deadlines, and what this means for the average citizen.
Erste made the first move
Since October 1, Erste banka has been applying higher interest rates on housing loans. Specifically:
- Fixed rate on housing loan up to 120 months, without mortgage: 3.45% for existing clients (was ~3.2%), 3.75% for new clients
- Housing loan with mortgage, fixed rate up to 30 years: 3.45% (existing clients), 3.75% (new clients)
- Combined rate (fixed first 5 years, then variable): 3.05% fixed for first 5 years for clients, then 6-month Euribor + 0.85 pp margin
- Housing package with mortgage and insurance, fixed rate up to 30 years: 3.15% (was 2.9%) for clients
PBZ follows: promotional period over, rates returning to higher levels
During September, PBZ offered promotional rates of 2.98% to 3.18% fixed for up to 30 years. Starting in October, these rates have returned to standard levels of 3.38% to 3.58%. Only Zaba currently holds a rate of 2.99%.
HNB: Two measures at once
The Croatian National Bank is responding to a 10.8% increase in lending activity (households, August 2026 compared to the previous year) and real estate prices that rose 14.3% year-on-year in the first quarter of 2026.
Two key measures:
- Stricter lending criteria (as of October 1, 2026) – HNB has reduced the share of loans that banks may approve with deviations from prescribed criteria. This means less flexibility for citizens who do not meet standard conditions.
- Increase in the countercyclical capital buffer – the reserve that banks must set aside in good times goes:
- from 1.5% to 2% (as of January 1, 2027)
- then to 2.25% (as of October 1, 2027), nearly reaching the maximum of 2.5%
What does this mean for your wallet?
According to HNB, a loan of €150,000 over 25 years at an interest rate of 2.9% carries a monthly installment of about €703. Just 1 percentage point higher interest (3.9%) means:
- €80 higher monthly payment (€783)
- €957 more per year
- €24,000 more in total over the entire repayment period
And that is just a mathematical example. In practice, the housing loan installment already “eats” 57.2% of the average net salary (data for July 2026), compared to 47.3% in June 2021. Housing affordability is about 15% worse than at the 2017 peak, according to Ekonomski lab.
Why is HNB doing this?
Household loans grew by 10.8% in August compared to the previous year, and housing loans by a full 12.4%. Apartment prices are rising faster than wages and construction costs. HNB warns that banks are increasingly offering loans with variable rates, creating a “credit time bomb” – when Euribor rises, so do the installments.
The share of loans with variable rates in repayment is currently only 14%, but new loans are increasingly heading in that direction. This means that future Euribor increases will directly impact citizens’ wallets.
What now?
If you are planning a housing loan, time is not on your side. Interest rates are rising, criteria are tightening, and real estate prices show no signs of slowing down. Recommendations:
- Consider a fixed rate for as long a period as possible – you will know where you stand
- Compare bank offers: Zaba currently has the lowest rate at 2.99%
- Check subsidies – APN and state-supported models can help
- Do not rush into “promotional” offers without reading the fine print
This article is for informational purposes and does not constitute financial advice. For specific decisions, consult a professional.