Two top-ten lenders in Romania have decided to increase the down payment for mortgage loans starting May 1, after the new law on giving in payment was published in the Official Gazette last week.

The second largest local bank BRD has increased the down payment from 15% to 35% for mortgage loans in lei that are below EUR 250,000. Alpha Bank, which ranked eighth based on its assets last year, also increased the down payment from 15% to 30% for credits in lei and from 25% to 40% for loans in euro, regardless of the loan’s value.

Raiffeisen, Bancpost, and Garanti also decided to increase the down payment for mortgage loans earlier this year, when the law was just in debate.

The giving in payment law, which was strongly opposed by Romania’s National Bank and local commercial banks, was voted by the Parliament in April and signed by President Klaus Iohannis at the end of April.

The law was published in the Official Gazette on Thursday, April 28, and will enter into force in mid-May. It introduces giving in payment as a way to discharge mortgage debts.

The final form, recently voted by the Chamber of Deputies and passed by the President, includes several changes.

editor@romania-insider.com