Choosing a mortgage in 2026 is more demanding than at any point in the past decade. Interest rates are well below the 2023-2024 peak, but they are not entirely calm: 6-month EURIBOR actually rose through 2026 - from around 2.1% in January to roughly 3.1% in early October 2026 - so variable rates for new loans went up too. Fixed rates stayed broadly stable. You can see how EURIBOR and average bank rates have moved on our macro page, which also shows the margin banks add over the reference rate.
Interest rates
When choosing a loan, it is therefore essential to understand how interest rates are formed. The Bank of Slovenia publishes monthly statistics on interest rates for new household business, showing trends in fixed and variable rates. Interest rates are an important tool through which central banks influence prices, economic growth, and stability, and they are one of the key elements in household borrowing decisions. In autumn 2026, published fixed interest rates for housing loans at Slovenian banks are roughly in the 3.3% to 4.4% range, depending on the term, the loan-to-value ratio and the bank - the most competitive banks are around 3.3-3.8%. Variable rates are tied to 6-month EURIBOR (around 3.1% in early October), on top of which the bank adds its margin, so at the most competitive banks they range between about 3.5% and 4.5%. Current rates by bank are in our mortgage comparison.
Fixed or variable interest rate?
The difference between fixed and variable interest rates is less obvious in 2026 than in 2022-2024, when variable rates were often noticeably higher and people moved heavily toward fixed-rate loans. Today the gap has narrowed - at the most competitive banks the fixed rate is even lower than the variable one - so the decision depends more on your personal risk tolerance. A fixed interest rate brings complete predictability, because the monthly payment does not change until the loan is fully repaid. A variable interest rate could fall if the ECB cuts rates again, but it could also rise - which is what we saw through 2026, when 6-month EURIBOR climbed about one percentage point. Since the ECB’s future moves depend mainly on the inflation outlook, a variable rate is still an uncertain choice, even if not as extreme as two years ago.
Annual Percentage Rate (APR)
When comparing loans, the most important indicator is APR (Annual Percentage Rate), which includes all loan costs: interest, approval fees, insurance costs, account management fees, and other additional costs. APR is therefore the best way to compare banks, because it reveals the true cost of the loan. In practice, a bank can have a lower nominal interest rate but a higher APR because of high approval fees or mandatory insurance with an external insurer. In autumn 2026, APR for 20-year housing loans for existing customers most often falls between roughly 3.7% and 4.7%, and the differences between banks can be substantial, especially for larger amounts and a higher loan-to-value ratio.
Example
For a clearer picture, let us look at a concrete example. If you take out a €150,000 loan over 20 years with a fixed interest rate of 3.6%, the monthly payment is roughly €880. If the APR is 4.1% because of approval and insurance costs, the total loan cost increases by several thousand euros. With a variable interest rate of 3.9%, the initial payment is roughly €900, but it can fall or rise in the coming years. If EURIBOR were to fall by 1 percentage point, the payment would drop by around €70-€80. If it rose by 1 percentage point, the payment would increase by around €80-€90. This means a variable interest rate mainly makes sense for borrowers who have enough financial buffer to absorb potential swings.
Insurance costs
Insurance costs are another important element when choosing a loan. Most banks offer three options: a mortgage, insurance through an insurer, or a combination of both. A mortgage is usually the cheapest option, but it requires registration in the land register and a property valuation. Insurance through an insurer is faster, but more expensive, because the insurance cost can amount to a percentage of the total loan. In 2026, insurance costs at some insurers range between 1.5% and 3 % of the loan value, which can mean several thousand euros in additional costs. That is why, when comparing APR, it is essential to check whether the loan is secured by a mortgage or through an insurer.
Time to loan approval at the bank
When choosing a bank, it also matters how quickly the bank processes an application. In 2026, the differences between banks are significant. Some banks process applications within one week, while others need three to four weeks. If you are buying property in a market where speed matters, this can be an important factor. It is also important to check whether the bank requires you to open a transaction account, receive your salary there regularly, or take additional products such as life insurance, accident insurance, or saving products. These conditions can affect the final cost of the loan, so they need to be included in the comparison.
The role of the loan term
In 2026, interest in longer-term loans, such as 25 or 30 years, has also increased. A longer term means a lower monthly payment, but a higher total loan cost. If you take a €150,000 loan over 30 years with a fixed interest rate of 3.7%, the monthly payment is roughly €690, which is noticeably less than with a 20-year term. However, the total loan cost increases by roughly €36,000. A longer term mainly makes sense for people who want a lower monthly payment because of other financial obligations, but you still need to pay attention to the total cost.
Stress-testing loan terms
When deciding between banks, it is useful to use a loan calculator, which lets you calculate the monthly payment, the total loan cost, and the impact of interest rate changes. The calculator is especially useful for variable-rate loans because it lets you simulate different EURIBOR scenarios. In 2026, it is advisable to calculate at least three scenarios: stable EURIBOR, a drop of 1 percentage point, and an increase of 1 percentage point. That gives you a realistic sense of how sensitive your monthly payment is.
Advice for FinPortal readers:
For a personalised calculation, use our loan calculator and run your own stress test of loan terms.
Conclusion
To sum up, choosing a mortgage in 2026 depends on three key factors: the stability of interest rates, your risk tolerance, and the total loan cost expressed through APR. A fixed interest rate is the best choice for people who want complete predictability and stability. A variable interest rate suits those who believe EURIBOR will fall in the coming years and who have enough financial reserves for possible fluctuations. APR is the most important indicator when comparing banks because it reveals the true cost of the loan. Rates in 2026 are well below the 2023 peak but not entirely calm, which makes a careful comparison of offers matter more than ever. Check current rates and APR across Slovenian banks in the mortgage comparison.
