For most people, buying a flat or a house is the biggest financial decision of their life. Since only a few buyers can purchase a property entirely with their own money, a mortgage is usually a key part of financing it. At the same time, it is a commitment that can last 20 or even 30 years, so it is worth spending some time preparing and comparing offers before you sign the loan agreement.
Many buyers make the same mistake. They first find a property they like, and only then start checking their financing options. In practice, it is usually better to reverse that order. If you already know in advance how much you can borrow and what instalment you can afford, you will be far more confident during your search and will avoid a lot of disappointment.
First, check your credit capacity
The loan amount does not depend on your salary alone. When assessing credit capacity, banks also look at other obligations such as existing loans, leases, account overdraft limits, the number of family members, and the amount that must remain for living expenses after the instalment is paid.
Additional income can also play an important role for some applicants. If you have a side business, rental income from a property, or other regular income, some banks may take it into account when calculating your credit capacity, although approaches vary between banks.
It is advisable to run an informative calculation right at the start. On FinPortal.si you can use the credit capacity calculator to quickly check roughly how large a loan you could get based on your income and obligations.
Your own funds matter more than most people think
When people talk about a mortgage, most of the attention usually goes to the loan amount. Less is said about own funds, even though they can significantly affect the final cost of financing.
A higher own contribution generally means a smaller loan and, as a result, less interest paid. Banks also tend to look more favourably on applicants who can finance part of the investment themselves.
Even so, it does not make sense to spend all your savings on the purchase. Once you become a property owner, additional costs often appear that buyers do not think of at the start. The most common ones are the property appraisal, notary fees, moving costs, furnishing, renovation, and numerous smaller expenses that add up quickly.
That is why it is useful to prepare a complete financial plan for the purchase. FinPortal.si also offers a real estate financing calculator, which, in addition to the purchase price, takes into account your own funds, additional costs and the expected loan.
Example: financing the purchase of a flat
Imagine buying a flat worth €250,000. The buyer has €60,000 of their own funds available and wants to finance the rest with a mortgage.
In this case, they would need a loan of around €190,000. If they only had €40,000 of own funds available, they would need to take out a larger loan, which would mean a higher monthly instalment and more interest paid in total over the entire repayment period.
Even a difference of a few tens of thousands of euros in own funds can mean a saving of several thousand euros over the long run. That is exactly why it makes sense to prepare several different scenarios before buying and check their financial consequences.
Comparing banks is often the fastest way to save
Many borrowers still make one of the biggest mistakes. They get an offer from their own bank and consider the process finished there.
The differences between banks can be considerable. It is not just about the interest rate, but also about approval fees, loan servicing fees, insurance costs and other conditions that affect the total cost of financing.
How much this means in euros is shown in our study What choosing the wrong bank costs: for a €150,000 loan over 20 years at a fixed rate, the gap between the cheapest and the most expensive bank was more than €14,000, including all costs.
That is why, when comparing offers, it makes sense to focus mainly on the APR (annual percentage rate), since it includes most of the relevant costs and allows for a much more realistic comparison between offers.
On FinPortal.si you can check current offers from various Slovenian banks in the mortgage comparison and quickly see which offers are currently the most competitive. If you are buying an energy-efficient home or planning an energy renovation, also check the green home loans that banks offer specifically for these purposes. If you are already repaying a mortgage, check whether refinancing your loan at another bank pays off.
Fixed or variable interest rate?
The question of which interest rate to choose comes up with almost every mortgage, and the answer isn’t the same for everyone - it depends on your risk tolerance and financial reserve. We cover current rate ranges, EURIBOR’s trajectory, and a detailed look at fixed vs. variable in Loan 2026: how to choose the right mortgage. You can quickly check how each choice affects your instalment and term in the loan calculator.
How does mortgage approval work?
Once you choose a bank, you need to submit the required documentation. Most banks ask for a personal ID, proof of income, and documentation about the property you are buying.
After you submit your application, the bank checks your credit capacity and orders a property appraisal. The purpose of the appraisal is to determine whether the property’s value matches the purchase price and whether it provides adequate collateral for the loan.
If everything checks out, the loan agreement is prepared. Before signing, take the time to review the conditions carefully. It is especially important to understand the terms for early repayment, the costs of any contract changes, and how the interest rate is set.
The most common mortgage mistakes
Most problems are not caused by the banks, but by buyers making hasty decisions. A common mistake is focusing only on the size of the monthly instalment, while forgetting to check the total cost of the loan. A longer repayment period reduces the monthly instalment, but it can significantly increase the total amount of interest paid.
Many people also fail to compare offers from different banks, or end up with almost no financial reserve after the purchase. Unexpected costs with property are not the exception - they are closer to the rule.
Conclusion
A mortgage is a long-term financial decision that deserves more attention than a quick glance at listings and interest rates. Good preparation, a realistic assessment of your credit capacity, and comparing offers from different banks can save you several thousand euros and a lot of stress.
Before you sign the contract, check your credit capacity, prepare a financing plan with the real estate financing calculator, and compare bank offers in the mortgage comparison. On FinPortal.si you can do all of this in one place, from calculators to mortgage comparison.
