Banks offering mortgage loans with no down payment at double the interest rates

In order to attract clients, banks started approving mortgage loans with no down payment and no insurance at the National Mortgage Insurance Corporation (NMIC). The citizens, however, remain reluctant to take out these loans due to the still large expenses.

Those who choose to take out a loan with no down payment and no insurance will have to pay double the interest rates of standard loans. On the other hand, it's difficult nowadays to set aside a minimum of EUR 7,000 to take out a EUR 30,000 loan.

For example, the interest rate of a EUR 30,000 mortgage loan with no down payment and no insurance at NMIC is 7.30% and the monthly installment is EUR 188.80. With down payment and loan insurance, the interest rate is 3.6% and the installment EUR 127.52.