by Property Forum | Economy

The market for mortgage loans was dynamic in 2020 and this trend is continuing in early 2021, while the segment of consumer loans is narrowing, says Sergiu Oprescu, President of the Association of Romanian Banks (ARB). 

Loans granted for the acquisition of houses have stabilized the lending market for individual consumers. Oprescu suggested that there is room for growth as mortgage loans account for 8.5 - 8.6% of Romania’s GDP, which is one of the lowest levels in the European Union. 

Speaking about interest rates in the Romanian currency, the ARB Head said during ZF Live show that “we are on a stable level.” He predicts that international interest rates will remain in low territory in the next years.

First home buyers can get a bank loan through the Noua Casa programme. The state provides a guarantee for these loans. Eligible borrowers need to provide a down payment of 5% or 15%, depending on the loan size. The state-backed scheme covers new homes with prices as high as €140,000.