The landscape for home loans changed notably in 2026. Two distinct policy moves — an updated lending regulation for a specific Italian credit management scheme effective 1 April 2026 and a new Serbian law that began applying from 1 January 2026 after entering into force in March 2026
— alter how interest rates, durations and limits are set. This article compares the main points and highlights practical steps borrowers should take when planning a mortgage. It focuses on loan-to-value, caps on interest rate, repayment mechanics and documentation requirements.
The aim here is to give a clear, actionable summary so you can spot key differences: the Italian framework prescribes detailed ceilings by purpose and formal procedures for
disbursement and repayment, while the Serbian reform introduces a permanent cap mechanism tied to market averages to protect borrowers from sudden spikes in market rates.
Italian fund lending: who qualifies and how the loan works
The Italian regulation applies to members of the unified credit and social benefits management scheme and provides specific rules on eligibility, maximum amounts and repayment. Repayments use the French method, meaning monthly,
constant, postpaid installments based on the chosen TAN and the loan amount. All instalments must be paid via PagoPA, following the institute’s operational instructions. Borrowers can make early repayments either partially or in full without penalties; partial prepayment requires notice at least twenty days before the next scheduled installment.
Duration, rate conversion and amortization options
Duration limits are linked to borrower age: the sum of current age and loan duration cannot exceed 80 years. Loans for study purposes are capped at 15 years. Borrowers may request a one-time change of interest type — from fixed to variable or vice versa — but only after two years from contract signing. A built-in amortization simulator is available to model scenarios with fixed or variable rates and different tenors.
Rates, caps and eligible amounts under the Italian rules
The new Italian rate schedule, effective for applications from 1 April 2026, ties fixed TAN to both duration and LTV brackets. For example, 10- and 15-year fixed curves move across discrete LTV tiers, while longer terms show progressively lower ranges. The variable option is indexed to Euribor 1M plus 150 basis points, with the reference fixed at the end of the prior month. Maximum financeable amounts depend on purpose: up to €300,000 for new-build purchase or construction, €150,000 for major maintenance or adaptation, €75,000 for garages or parking, and €100,000 for higher education costs. An additional documented amount up to €6,000 can be requested for appraisal and optional insurance premia. Disbursements cannot exceed 100% of the appraised value or declared purchase price net of financed costs, and a 0.50% administrative charge is withheld at payout.
Affordability and ranking rules
Installments, including interest, must not exceed half of the household’s net income calculated from the latest tax return and current indebtedness. Applications are admitted in protocol order; if requests exceed 90% of annual availability, a national monthly ranking based on the ordinary ISEE is applied and only new financing requests are considered beyond that limit. Portability is allowed under the same conditions as existing loans with other lenders.
Serbia: from temporary freeze to a permanent cap mechanism
In Serbia the initial central bank decision that froze mortgage rates during turbulent months starting in September 2026 protected borrowers until end 2026. That temporary shield was followed by a structural change: a law entered into force in March 2026 and began applying from 1 January 2026, replacing ad hoc freezes with a formal cap tied to market averages. The cap limits the nominal rate to the weighted average on comparable loans plus one fifth (20%) during the 2026–2027 transition, rising to one quarter (25%) for later periods as specified in the law.
Publication rhythm and practical examples
The central bank calculates and publishes the relevant weighted average twice a year and simultaneously sets the maximum permitted nominal for variable and fixed loans in local and foreign currency. For the period 1 January–31 May 2026 authorities published caps such as a 5.88% ceiling for euro-indexed variable mortgages and 5.18% for new euro fixed loans, while observed new-loan rates stood near 4.5% in January 2026. The law also caps the effective rate, preventing banks from adding fees that would circumvent the nominal limit; the maximum effective rate at contract signing was 5.65% under those rules.
What borrowers should do now
Compare offers by modeling scenarios in the available simulators, check whether a given loan is fixed or variable and how the Euribor or published weighted average feeds into your payments, and verify affordability against the household net income ceilings. For the Italian scheme consult the official regulation effective 1 April 2026 for full procedural details; in Serbia follow the central bank publications that set the semiannual caps. Keeping copies of appraisal reports and documented costs will help obtain extra eligible amounts and avoid surprises at disbursement.