Shock on the real estate market: loans became more expensive by 3,400 euros in a single week due to the exchange rate
Those who want to buy a home are now in for a shock: due to the increase in the euro, a loan for an apartment has become more expensive by more than 3,400 euros in just one week. Moreover, the banks have raised the bar: now they ask you for more money collected for the advance and a higher salary in order to give you the loan.
The explosion of the exchange rate made mortgage loans more expensive by 12,500 lei in a single week
The volatility of the leu/euro exchange rate that appeared in the context of the political crisis has a direct impact on Romanians who want to make a real estate purchase and rely on a loan to become owners.
In other words, just by the depreciation of the leu in relation to the euro, the cost of a 100,000 euro loan increased in one week by 3,457 euros, the advance required to contract the loan being more than 500 euros higher.
In the case of an apartment of 150,000 euros, the cost of the loan increased by 5,000 euros only because of the exchange rate, the advance required to contract the loan being 752 euros higher.
The official exchange rate reached 5.2688 lei/euro on Wednesday, 5 money more than the previous day. On Tuesday, the BNR announced an exchange rate of 5.2180 lei/euro, after on Monday, May 4, it had risen to 5.1998 lei/euro from 5.0927 lei/euro as of April 27. The depreciation of the national currency in relation to the euro translates into more expensive housing, higher incomes for accessing financing and, ultimately, more money out of Romanians' pockets to pay installments.
Thus, according to “Adevărul” calculations, in a single week, the price in lei for an apartment that costs 100,000 euros increased from 509,270 lei (on April 27), to 519,980 lei on May 4 (that is, 2,103 euros more than on April 27 when the exchange rate was 5.09 lei/euro), to 521,800 lei on May 5 (i.e. 2,460 euros more than on April 27) and at 526,880 lei on May 6 (respectively a cost increase of 17,610 lei/3,457 euros).
This means that the advance required to contract a mortgage increased from 76,390 lei (as of April 27) to 79,032 lei (as of May 6), i.e. 2,642 lei more, equivalent to 519 euros (at the exchange rate of April 27, the reference date taken into account).
Also, the price in lei for an apartment of 150,000 euros is 26,415 lei higher than on April 27 (5,187 euros more on May 6 compared to April 27), the advance charged by the bank being almost 778 euros higher (3,962 lei more) on May 6 compared to the beginning of last week.
“Political instability is quickly reflected in the economy, including through pressure on the exchange rate, which has exceeded the thresholds to which the market was accustomed in recent years. For clients who are going to access financing, the depreciation of the leu can mean not only higher rates, but also higher eligible incomes, forcing the resumption of the bank analysis process or the addition of the advance. In such a context, it is important that financing decisions are made carefully, with the support of specialists, so that the family budget to remain protected and to have a real margin of safety”, said Dan Niculae, CEO of Imobiliare.ro Finance.
More expensive homes, more money brought from home to complete the transaction
Housing prices are generally expressed in euros, and an increase in the exchange rate can lead to the appearance of differences in some cases considerable in the selling prices asked to buyers. This aspect is all the more important if we consider that the last year has already brought a 12% advance in the national average. Over the past three years, the amounts asked by buyers for apartments in major cities have increased by 31%-45%.
Given that many of the Romanians who access a loan are approaching the maximum level of the permitted degree of indebtedness (40%, respectively 45% for the first home), the bank cannot cover the difference in the exchange rate through credit. Thus, buyers have two options in front of them – either they cover this difference from their own funds, or they are forced to postpone the transaction, experts say.
Higher income to buy the same home with credit
Here is what, in real numbers, the exchange rate fluctuation means for an apartment of around 100,000 euros:
- Housing price: In just one week, the same house became more expensive by over 10,600 lei (from 507,000 lei to 518,000 lei), just from the exchange rate difference.
- Monthly rate: If you borrow now, you will pay an installment of 2,423 lei, 50 lei more each month compared to last week. Over the course of 30 years, this seemingly small difference means an additional cost of 18,000 lei.
- Salary barrier: Lending conditions have also tightened. If last week you needed a net salary of 5,933 lei to qualify, now the bank requires a minimum of 6,058 lei.
Practically, although the price in euros remained the same, for a Romanian who earns in lei, the threshold of access to his own home rose significantly in just 7 days.
What has changed in one year
Last year at the beginning of May, when the rate was around 4.9 lei/euro (May 2, 2025, 4.9773 lei/euro), the price the buyer had to pay for the same home was almost 22,170 lei lower than this week. And the minimum income required to access the loan was significantly lower, 5,798 lei to be exact. The rate that the new owner paid was 2,319 lei/month, according to specialists' calculations.
