What is Mortgage (Hipoteka) in North Macedonia?

A North Macedonian mortgage (hipoteka) is a registered security right over immovable property securing a loan obligation, recorded in the Real Estate Cadastre.

Key Facts — Mortgage (Hipoteka) in North Macedonia

A hipoteka (mortgage) in North Macedonian law is a security right (stvarno pravo) over immovable property, created in favour of a creditor — typically a bank — to secure repayment of a loan or other obligation. The mortgage encumbers the property itself, not the person.

Under North Macedonian law, a valid hipoteka must be created by a notarised agreement and registered in the Real Estate Cadastre (Katastar na nepokretnosti). An unregistered mortgage has no effect against third parties. The registration records the capital sum secured, the interest rate, the maturity date, and the rank of the mortgage.

North Macedonian banks offer mortgage products to both residents and non-residents, including foreign nationals. Loan-to-value ratios for residential properties typically range from 60% to 80%. Non-residents and foreign currency earners may face lower LTV limits and additional documentary requirements.

The mortgage follows the property, not the owner. If a mortgaged property is sold, the mortgage remains unless the buyer requires the mortgage to be discharged as a condition of the purchase. Buyers should always check the Katastar for existing mortgages before completing a purchase.

When a mortgage is fully repaid, the creditor and borrower must cooperate to formally cancel (brishenje na hipoteka) the mortgage entry in the Katastar. This requires a notarial deed of cancellation and a registration entry. Failure to remove a paid-off mortgage can create complications for future sales or refinancing.

Common Mistake: Purchasing a North Macedonian property without checking for existing mortgages in the Katastar. A buyer who takes property subject to an undischarged vendor's mortgage may inherit the debt or face a priority claim from the bank.
Expert Tip: Ensure that mortgage discharge is completed and registered in the Katastar before or simultaneously with the transfer of ownership on your purchase. Your Macedonian lawyer should coordinate the timing of discharge and transfer with the seller's bank.
Related terms: PROPERTY SHEET NOTARIAL ACT LEASE AGREEMENT

Frequently Asked Questions

Can a foreign national get a mortgage from a North Macedonian bank?

Yes, several Macedonian banks offer mortgages to foreign nationals, though the terms, required documents, and LTV ratios may differ from those for residents. You will typically need proof of income, a valid passport, and a favourable credit assessment.

What happens to the mortgage if the borrower sells the property?

The mortgage remains registered unless discharged. The standard practice is for the seller to repay the mortgage from the sale proceeds at the closing of the transaction, with simultaneous discharge registered in the Katastar.

Is there a maximum mortgage term in North Macedonia?

Mortgage terms typically range from 10 to 30 years depending on the lender and the borrower's age and income profile. There is no statutory maximum term.

→ Read our full guide: Guide To Lawyers In North Macedonia

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AvökatFinder Editorial Team Legal glossary editors — expat legal terms across 41 European countries

This glossary entry is produced by the AvökatFinder editorial team and reviewed for accuracy. It is for informational purposes only and does not constitute legal advice. Always consult a qualified lawyer in North Macedonia for advice specific to your situation.

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