The National Bank of Slovakia, or NBS, is planning changes to mortgage lending rules aimed at improving housing affordability, particularly for young first-time buyers. According to Bank Board member Vladimír Dvořáček, investor demand is playing an increasingly important role in the housing market. In 2025, more than half of all apartments purchased with a mortgage were bought by people who already owned at least one property. Sixteen percent were purchased by buyers acquiring a third property or more.
In response, the central bank plans to adjust mortgage lending limits to make it easier for first-time buyers to enter the housing market. Marek Ličák, Director of the Financial Stability Department at the NBS, says the changes will benefit borrowers under 35 who do not yet own a home. The loan-to-value limit for this group will increase from 80 to 90 percent, meaning a 10-percent down payment will be sufficient instead of the current 20 percent. At the same time, the central bank wants to curb investment purchases. Buyers who already own at least two properties and wish to purchase a third will be required to provide a 30-percent down payment.
Mortgage interest remains the largest source of profit for Slovak banks. However, analysts at the central bank believe the mortgage market has likely reached its peak, and the number of newly issued home loans is expected to decline in the coming years. Despite that outlook, Slovakia's financial system remains stable and resilient.
Dvořáček says the biggest risks come from abroad, including the continuing war in Ukraine and conflicts in the Middle East, which can have a particularly strong impact on small, open economies such as Slovakia. Recent stress tests by the National Bank of Slovakia show that the country’s financial institutions have sufficient reserves to withstand even severe crisis scenarios.
Source: STVR
