Bks To Take Over Houses In “First House” Program Unless State Pays Loan Guarantee

At the same time, during the period of the financing contracts, banks have to maintain only part of the conditions asked when closing the contract, namely those related to the interest of the loan, to the non-charging of the commission for anticipated reimbursement, to the maximum duration of the loan and the inexistence of clauses that would allow the unilateral change of the contract by the bank.

 

According to the decision, persons buying apartments with state-guaranteed loans will have to insure them against all risks and name the state as beneficiary of the insurance policy during the entire financing period.

 

The government decided to amend the decision after banks asked that the program would include the newly-built apartments that are financed from loans and already mortgaged by their developers, as well as the clarification of certain details on mortgage and insurance policy.

 

The government received offers from 20 banks with a total value of more than EUR1.4 billion for the “First Home” program, but the total funds alloted in 2009 for the program were limited at EUR1 billion.

 

So far, 13 banks signed the convention.

 

ING Bank Romania withdrew from the "First House" program, planning to launch a similar mortgage loan product, but without the state guarantee, with a 5.5% interest rate and a maximum ceiling of EUR80,000.

 

The government launched a program to guarantee the loans contracted for the purchase or the construction of a dwelling, within the maximum threshold of EUR60,000. The guarantee is granted to people buying their first house and who did not previously benefit from a mortgage loan.