The total balance of mortgage loans granted to the population increased by 7.5% in March this year compared to the same month of 2024, according to BNR data. Last year, over 540,000 Romanians had mortgage loans, and their number increases constantly.
540,000 Romanians had mortgage loans last year. Photo archive
The offers of banks must be carefully analyzed, depending on several criteria, both when the loans are contracted and when they are opted for refinancing, say the specialists.
“The total balance of mortgage loans granted to the population increased by 7.5% in March, a positive evolution that comes in a moderate decrease in inflation, interest stabilization and intensifying the demand for housing, especially in big cities. The share of loans granted in lei continues to be dominant, over 90% of the total, a sign that the foreign exchange has been significantly diminished. However, because it is a financial decision that impacts us in the long term, 20-30 years, we must pay attention to more details when we want to access a mortgage“Explained Ion Soltinschi, consultant and financial planner.
According to the specialist, several criteria must be taken into account:
- The ability to pay the loan: In order to make sure you have enough income available to cover these expenses, monthly expenses, including costs associated with loan, such as interest, taxes and insurance must be calculated.
- Fixed or variable interest: the type of interest associated with credit is very important. A fixed rate will remain constant for a certain period of time, while a variable rate will fluctuate according to the evolution of bank indices, such as IRCC or EURIBOR. The fixed rate offers more predictability, at least in the first years of credit.
- Currency: A mortgage loan can be accessed in both lei and euros. The recommendation is that the loan is made in the currency in which you collect the income, otherwise you submit to the risk of currency.
- Loan period: Mortgage loans can be accessed for long periods, 30 or even 35 years old. It is advisable to access a mortgage for as long as possible, so that the monthly rate is as low as possible. Another useful tip is to make early repayments or to implement a planning for early credit closure, so as to reduce as much of the interest you pay to the bank.
- The costs associated with the loan: you must consider, in addition to the interest rate, the costs associated with the loan, such as administration fees, insurance, etc.
What are the most advantageous mortgage loans
“Choosing a loan must always be done so that it allows you to refund and match your current and future financial situation. When we analyze a mortgage credit offer, the first thing we look at is the interest – the cost of the credit. At the moment there are several deals of fixed interest loans under IRCC“, States Ion Soltinschi.
According to the analysis made by the platform Mr.Finance.ro, the most advantageous mortgage loans are offered by:
- Raiffeisen – at the moment, the bank has the lowest interest on the mortgage. For the purchase of a home with the energy class A, Raiffeisen offers a fixed interest loan of 4.75%, for 3 years. In addition, you also receive a voucher worth 2,000 lei to cover the expenses with accessing the loan.
- BCR – and this bank has a very good offer: fixed interest of 4.79% for 3 years. However, for accessing the loan you have to check several conditions: transferring the salary in a BCR account, insurance attached to the credit, building with the energy class of A etc.
- BRD – The offer is at least as attractive: 4.8% fixed interest for 3 years. In order to have this interest you will have to collect your income in a BRD account, to conclude a life insurance, and the purchased building has the energy class A. In addition, the bank charges a file for analyzing the file worth 900 lei.
- First Bank and UniCredit – the two banks come with similar offers: 4.89% fixed interest for 3 years, later variable. In order to obtain this interest you will need to comply with the standard conditions: collecting income in an account of the bank, insurance attached to credit and energy class for the purchased building.
Graphic made by Mr. Finance
When it is worth refinancing the mortgage loan
Refinancing mortgage loans are an option for people who want to obtain a lower interest or more reimbursement period. This solution can be attractive for people who want to save money or strengthen their debts. In the opinion of the specialist Mr.Finance, refinancing is an option if:
- You have a variable interest loan.
- You have a balance large enough to deserve the refinancing.
- The current credit interest is greater than 1% compared to the interest you receive at refinancing.
“If you have contracted a mortgage before 2022, it could be an appropriate time for refinancing. From 2022 to the present,
IRCC has grown almost 5 times. Even if you initially had fixed interest on the mortgage, at the moment either you have variable interest or go to variable interest. But it is important that, before refinancing, you will calculate the related costs – notarial taxes, new evaluation, early repayment commissions – and compare them with future economies. If you save 100 lei per month by refinancing, but the costs of refinancing are 5,000 lei, you may not deserve it. Analyze your particular situation and resort to a specialist if you feel the need, then act. Mortgage offers presented above can also be used for refinancing“Ion Soltinschi recommends.
