The average interest of the new mortgage loans, both the fixed ones, which represent over 99% of the new mortgage volume currently granted and the variable ones, will increase in the second part of the year, according to a profile analysis.
IRCC, the index used as a reference for calculating variable interest, will have a value of about 6% in the last quarter of the year, according to current daily quotations, increasing from 5.55% at present.
Also, the calculations mortgage.ro and SVN Credit Romania show that the average fixed interest for new mortgage loans will increase in the second part of the year to about 5.95%, compared to a current level of about 5.45%. The average interest for new mortgage loans granted in Bucharest was at the beginning of this year about 5.75% according to the calculations of data -based companies from the banking market.
“The mortgage interest will increase by the end of the year because the inflation rate has remained at a high level, the national bank in turn maintaining the rate of monetary policy at 6.5%. On the other hand, despite these increases, the fixed interest will continue to be much more attractive compared to the variable ones and will be at least 1%,” said Alexandru Rădulescu, Managing Partner SVN Romania | Credit & Financial Solutions, exclusive partner of mortgage.ro.
At the same time, the fixed interest period of tens of thousands of mortgage loans granted at the end of 2022 and in the first part of 2023 will expire until the end of this year and in the first months of 2026. The fixed average interest estimated for the end of this year are still lower compared to those existing in 2022 – 2023.
“The persons who have contracted a fixed interest mortgage and whose fixed interest period is approaching the end, must be careful about the current offers, which are better than the last three years. The refinancing can be performed at any time during the credit and can get savings at the monthly rates. They can use many tools and we sites, and they can be able to call a specialized Good offers and what amounts can fit.“Added Alexandru Rădulescu.
The increase of the estimated interest for the second half of this year will be translated by a monthly monthly rate by about 90 lei for a new mortgage loan, worth 70,000 euros and contracted for a period of 25 years (15%advance). On the other hand, the rate will be only about 36 lei higher than the level registered at the beginning of the year and about 90 lei lower compared to the one registered a year ago, in the summer of 2024.
The value of mortgage loans increased enormously last year
The Romanians borrowed 9.2 million euros last year to buy their homes, 42% more than in 2023, according to the BNR, one of the explanations can be the decrease of the share of the mortgage loans in the monthly income.
In 2024, a total of mortgage loans worth 9.2 billion euros were granted at national level according to the data of the National Bank of Romania (BNR), increasing by 42% compared to 2023, including refinancing, conversions, transfers and restructuring.
The number of houses and apartments sold in 2024 at national level increased by 6.6% compared to 2023, according to the statistics of the National Agency for Cadastre and Real Estate Advertising, while in Bucharest-Ilfov were sold by 7.6% more homes in 2024.
On the other hand, the mortgage loans rates have decreased as a share in the revenues of a long -term debtor, despite the variation of interest, which can reach some percentage points, according to an analysis performed online mortgage.ro.
A mortgage loan is repaid, on average, in 15 years
According to her, the average duration of repayment of a mortgage loan is about 15 years in Romania. The average interest of a mortgage loan in lei, equivalent of 65,000 euros, contracted in 2011, was 8.88% per year (ROBOR 3M + 3% fixed margin). Its average rate was 2,381 lei, representing 160% of the average salary at national level (1,417 lei) registered in the middle of the mentioned year.
The interest of the analyzed mortgage loan varied several times during the 15 years analyzed: first registered a gradual decrease, to a level of 3.78% per year in 2016, when the rate reached 1,506 lei, representing 72% of the average net salary at national level.
Subsequently, the interest increased up to 5.93% / year, level registered in 2019, when the rate reached a value of 1,868 lei, representing 59% of the average net salary at national level. There followed a new period of interest decreases, determined by the fiscal measures meant to mitigate the effects of the Covid-19 pandemic, the average interest being reduced to 4.47% in 2021, when the rate of the same credit reached 1,618 lei or 45% of the average net salary at national level.
The tip of interest rates touched in 2023
2023 brought a new interest rate, when the refinancing of the mentioned credit could have brought a fixed interest of 7.32%, the rate reaching 2,123 lei or 46% of the average net salary at national level – the share of the rate would have increased by only one percentage in the average salary, although the interest increased by almost two thirds.
Currently, the fixed average interest for the mortgage loans is about 5.60% according to the mortgage.ro calculations, the mortgage loan contracted in 2011 reaching 1,810 lei, ie about 33% of the average net salary of 5,351 lei registered at national level in February this year.
“A mortgage loan must be analyzed for a period of 10 to 15 years, in which we have periods with very low interest, but also periods with very high interest. As a whole, however, the rates reach an increasing weight in the income of a debtor, despite certain periods of interest increases. In addition, debtors should take into account a refinancing method, at least once during a loan repayment, interest rates and rates can be substantial“, Explained Alexandru Rădulescu.
The average interest rate of the analyzed loan was about 5.88% in the period 2011 – 2025, while the average rate paid was about 1,863 lei, with 357 lei higher than the lowest registered level but also with 518 lei compared to the maximum registered level.
