Local lender Garanti Bank has decided to increase the down payment for its mortgage loans in euro from 25% to 40% starting April.

The bank has also reduced the loan-to-value (LTV) ratio from 75% to 60% for the mortgage loans in euro and the consumer loans with a mortgage in euro.

The conditions for accessing loans in lei remain unchanged, both for the down payment and the loan-to-value ratio.

Garanti has decided to increase the down payment after analyzing the market, said Ufuk Tandoğan, Garanti Bank CEO.

Several local banks have increased down payments on mortgage loans due to the new giving in payment law, which allows debtors to get rid of their loans by giving the mortgaged assets to the banks. The law is still debated in the Parliament.

editor@romania-insider.com