Romanian Govt Received 16 Bks’ Ok To Join „First Home” Program

The program is due to start sooner than scheduled, namely by the end of June at the latest, Boc added.

"This program will come into force this very month, at the end of June, sooner than expected, due to the efforts deployed by the Ministry of Finance and following the partnership with commercial banks. We received the confirmation from 16 banks that they are interested in the program, complying with the Government’s requirements, namely maximum 5% down-payment in buying the first home and an interest rate a lot lower than the one currently  on the market, considering the state is entirely liable for the buyer not complying with the loan terms," Boc said.

Boc is confident that once developed the program, the interest rates “will get even lower, considering the competition specific to this economic sector."

The program does not exclusively target youngsters, but "it mainly focuses on them."

The Romanian Government announced two weeks ago a program to guarantee the loans contracted for the purchase of the first home, within the maximum limit of EUR60,000, with the entire financing granted to this program reaching EUR1 billion.

The guarantee will be granted to the persons buying their first dwelling who did not previously benefit from a mortgage loan.

The selection criteria of banks that will further take part in the government’s program meant to guarantee loans contracted for the purchase of the first home will include charge-free early loan repayment, a down payment of maximum 5% of the loan value, and dwelling’s evaluation procedures, Boc said.