Client independently makes the decision about choosing a credit, while the credit broker plays a role in presenting and comparing the conditions of the credits, education and information. In addition to preparing credit documentation, the credit broker guides the client through the entire credit process and does this for free, emphasizes Martina Mataić Škugor.

For some time now, the Croatian Chamber of Commerce (HGK) has been operating the Group of Credit Brokers, the goal of which is to improve credit brokerage, but also education of consumers about the importance of information before financial indebtedness. They were founded within the Association of Banks and Other Financial Institutions and Martina Mataić Škugor, Director of Credit Brokerage at Opereti, one of the leading real estate agencies in Croatia, was elected as the first President of the Group.

As a lawyer by profession, she has behind her a long experience in the banking sector, where she held a management position, focused on the development of credit products, especially residential consumer credits. About five years ago, after more than 20 years of successful career in Zagrebačka banka, she decided to make a career change. She stayed in the real estate sector, but in the role of an agent at Opereti, where she was soon appointed Director of Credit Brokerage. "It was a natural step for me that allowed me to continue developing my skills in a very dynamic environment," she says.

Do citizens know what credit brokerage is?

Not as much as we would like. This motivates us to continue working on their education so that they understand that high-quality credit brokerage can contribute to their financial security. It includes comparing the conditions of credits in multiple banks, collecting the necessary documentation, informing about the types of interest rates, differences between annuity and rate, and the rights and obligations that arise from the credit relationship. This approach ensures that clients are well informed and supported throughout the entire financing process.

This is also the reason why HGK and the Group issued an informative brochure as a basic guide for financial literacy, which makes it easier for clients to understand different types of credits, rights and obligations under credit agreements, and promotes citizen awareness about financial indebtedness.

You are the Director of Credit Brokerage at Opereti. How do credit brokers engage in practice?

When thinking about buying a property, it is crucial to consider the financing method. Our approach starts with a conversation about the financial needs of clients. The goal is to inform them about the loan offers available on the Croatian market. Unlike a bank, which only offers its own products, a credit broker presents and compares the offers of multiple banks, thus enabling clients to have a clear picture of all the options.

In addition to the nominal interest rate, which most people take as the basis for choosing a loan, we direct clients to compare effective interest rates (EKS) and to the importance of other factors, such as insurance premiums, moratorium options and other elements that affect creditworthiness and others.

Can credit brokers suggest to the client which offer is better?

No, they cannot, as they do not perform the role of financial advisors. Our role is to provide clients with all relevant information about available credit options, educate them about the conditions of different loans, and enable them to make a decision about the most suitable financing on their own.

Are clients concerned that credit brokerage is an additional cost?

It is a free service for the client. The credit broker is paid by the partner bank in which the credit is realized.

Are there any significant differences in bank offers today?

Although the nominal interest rates and the level of fixed rates are currently similar among the leading banks, banks differ in other conditions that need to be considered. For example, some banks cover the costs of solemnization, which can significantly affect the total cost of the loan.

Additionally, there are differences regarding the age of the client, where the last installment of the credit in some banks follows retirement, while others allow repayment even five years after retirement. Different approaches are taken in assessing creditworthiness, especially in relation to entrepreneurs, and there are also differences in recognizing transportation costs, which some banks accept as part of the salary, while others do not.

What would be the ideal scenario for engaging a credit broker?

The ideal scenario would be for clients to visit a credit broker as soon as they have the idea of buying a property so that they can determine their creditworthiness and available budget. I recommend clients to inform themselves promptly about all factors that affect their financial preparedness.

For example, I had a client who wanted to buy an apartment worth 200,000 euros, planning to finance it exclusively with a residential consumer credit. His bank's valuation of the apartment was 180,000 euros and the bank approved a credit of 170,000 euros. Although the client seemed creditworthy based on his income, the lack of savings and the need for additional funds for adaptation and furnishing the apartment led him to give up this purchase.

How can such things be foreseen?

This experience helped the client to approach their finances more responsibly. We analyzed their monthly expenses, discovering unnecessary subscriptions and payments of which they were not even aware. We educated them about all costs related to buying a property and set up a savings plan to cover costs such as notary fees, taxes on property transactions and others.

Therefore, I would like to recommend clients, even at the first meeting, to immediately start with targeted savings if they do not have savings. Clients often think that their good salary automatically ensures creditworthiness, without taking into account that existing loans and credit cards can affect their financial situation. That is why it is essential to develop financial awareness and realistically assess their ability to take on credit.

Self- management of personal income and expenses is essential for preparing for future financial obligations.

From the perspective of clients, what are the main advantages of engaging a credit broker?

Clients who hired a credit broker often stress that with their help, they managed to realize a credit that enabled them to solve key life issues. Many, thanks to quality information and preparation, corrected their financial habits. In addition, they highlight a significant savings of time and money, as they did not need to visit the bank multiple times and express satisfaction with the trust they built with their broker, who successfully guided them through the entire process.

How do you manage to build trust?

The key is a combination of knowledge and experience. When clients see confidence in the approach and recognize the deep understanding of the necessary details that may not have been previously understood, trust is automatically built. My approach is based on practical advice that can be applied immediately, which clients value. This contributes to a good reputation both in the real estate agency and in credit brokerage, where I combine legal knowledge and bank experience with work on the ground.

It is interesting that you participated in the first program of subsidized residential credits in the Republic of Croatia. What do you remember from that time?

The beginning of the program in 2011 was marked by the Law on Subsidizing Residential Credits. I worked intensively on its implementation within the bank. The first clients had a subsidy of 50% of the annuity/rate for the first four years of loan repayment, which was extremely favorable given then-low real estate prices. Although the program was reactivated in 2017 with certain changes, the rise in real estate prices reduced its effectiveness.

Do you think that such a model of subsidization has become unsustainable?

Yes, in this model, the greatest profit went to sellers, which was not the primary purpose of the law. Additionally, the rise in real estate prices further reduced the effectiveness of the subsidy, making it less attractive to buyers.

And to conclude, what would your recommendation be to potential home buyers for evaluating and improving their personal financial situation?

Tracking your household budget is the foundation of financial responsibility. Managing your personal finances is not just important for immediate debt service, but also for long-term planning, saving and investing. I recommend the following activities:

Take the time to review your finances.
Group your expenses and think about how you can save in your household budget.
Define your monthly budget. Create a realistic plan of your monthly expenses because otherwise you will quickly give up on financial planning.
Define the amount for savings. It's easier to set aside some money if you set goals! To be persistent in saving, agree to a permanent direct debit.

If you plan to buy a property, open a savings account and start making deposits every month. If you can, start making deposits now in the amount of the future annuity or rate. This is a great way to recognize that you are able to set aside a certain amount each month. Additional benefit of this saving is that your savings, depending on the amount, can be used as a contribution for a mortgage loan, notary fees, and other costs related to buying a property.

Be patient and persistent. It is certain that additional costs will arise and disrupt your personal finances, but do not give up on your plan. Do not be too hasty, enjoy a coffee with friends or take your family out for lunch.

However, be persistent in planning your finances and your savings. It is worth being financially savvy!

Emphasized Martina Mataić Škugor at the end of the interview.

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