The volume of new mortgage loans in Romania rose by 10.2% to 2.5 billion lei (€506 million) in H1 2023 compared to the same period of last year, of which refinancing operations had a 25% share, according to a report by SVN Romania | Credit & Financial Solutions.
At the same time, the volume of mortgage loans fell by 15% year-on-year if refinancings are not considered.
"The mortgage market in Romania has successfully passed through the most difficult period of recent years, without an increase in the non-performing loan rate. Interest rates, especially fixed ones, are already following a downward trend, with several financial institutions competing fiercely on the segment of fixed rates below 6%, which has led to a revival of demand. In addition, current interest rates are lower than the IRCC value, which denotes a high confidence in the evolution of the market and the general solvency of potential clients, and the next period will bring new interest rate cuts," said Alexandru Rădulescu, Managing Partner SVN Romania | Credit & Financial Solutions.
The average loan installment for buying a new two-room apartment in Bucharest, with a usable area of 50 sqm, represented at the end of the first semester approximately 58% of the national net average salary. This rate will fall to 55% in September, which would be similar to the level from early 2020.
In H1 2023, close to 60% of home purchases were made directly with the funds of buyers, without any bank financing, according to data from the National Agency for Cadastre and Land Registration.
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