NBR: Variable-rate mortgage rates fall slightly

The NBR published on Monday the new IRCC index for the period April 1 to June 30, 2025. Thus, the value of the index decreases slightly, from 5.66% to 5.55%, which will mainly affect the rates of those who have variable-rate mortgages, especially those who have accessed the „New Home” program.

In a standard calculation, for a mortgage loan of 50,000 euro (RON equivalent), the monthly rate will fall from RON 1,792, as it is currently with the 5.66% IRCC, to RON 1,773 from April 1, once the new 5.55% index is applied.

Thus, the fall in rates will be modest, of around 1-2%, as Claudiu Trandafir, Business Development Director at Kiwi Finance, explains, according to Gândul.

Although the majority of Romanians have chosen to fix their interest rates and IRCC fluctuations no longer influence their rates, this change is important for people who have variable-rate mortgages. They will feel a slight reduction in their monthly payments.

For those due to pay their installments in the coming quarters, the IRCC could continue to fall. If there are no unforeseen changes, the IRCC could reach 5.44% or even 5.25% in the coming months.

However, the gap between fixed and floating rates will remain sizable, with a spread of more than 250 basis points in 2025.

The IRCC is set quarterly by the NBR and is the arithmetic average of the daily IRCC values of the previous period, taking into account all working days in that quarter. This index is applied by commercial banks for variable-rate loans and its value is used to determine the interest applied by credit institutions for the following quarter.