Romania Insider
Romania's Govt. to change structure of “First House” program to help families buy bigger homes

Romania’s Government wants to re-shape the state-backed First House (Prima Casa) program to help families, particularly those with kids, buy bigger homes, prime minister Viorica Dancila said at the beginning of the May 23 cabinet meeting.

The announcement came after the leader of the Social Democratic Party (PSD) Liviu Dragnea announced one day earlier that the First House program would be renamed “One family - One home”.

The Government already studied the first draft of this bill. Under the provisions of the bill, the maximum price of a house purchased with state guarantees will double to 570,000 (EUR 120,000). Under a more important provision, the interest rate charged by banks will be fixed over the entire period of the contract and it will range between 0.9% and 5.5% per year depending on the structure of the family and the number of children, according to Ziarul Financiar daily quoting the PSD leader. Currently, the maximum interest rate banks can charge in the First House program is two percentage points over the benchmark interest rate IRCC (some 4.36%).

Thirdly, the families with slightly higher incomes will also be allowed to participate in the program, since the limitations have become too restrictive, Dragnea explained. Applicants aged under 55 should be allowed to participate in the program, Dragnea added. Currently, each bank sets its own maximum age for applicants, but the loan should be repaid before the retirement age of 63-65.

[email protected]

(Photo source: Shutterstock)

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Romania Insider
Romania's Govt. to change structure of “First House” program to help families buy bigger homes

Romania’s Government wants to re-shape the state-backed First House (Prima Casa) program to help families, particularly those with kids, buy bigger homes, prime minister Viorica Dancila said at the beginning of the May 23 cabinet meeting.

The announcement came after the leader of the Social Democratic Party (PSD) Liviu Dragnea announced one day earlier that the First House program would be renamed “One family - One home”.

The Government already studied the first draft of this bill. Under the provisions of the bill, the maximum price of a house purchased with state guarantees will double to 570,000 (EUR 120,000). Under a more important provision, the interest rate charged by banks will be fixed over the entire period of the contract and it will range between 0.9% and 5.5% per year depending on the structure of the family and the number of children, according to Ziarul Financiar daily quoting the PSD leader. Currently, the maximum interest rate banks can charge in the First House program is two percentage points over the benchmark interest rate IRCC (some 4.36%).

Thirdly, the families with slightly higher incomes will also be allowed to participate in the program, since the limitations have become too restrictive, Dragnea explained. Applicants aged under 55 should be allowed to participate in the program, Dragnea added. Currently, each bank sets its own maximum age for applicants, but the loan should be repaid before the retirement age of 63-65.

[email protected]

(Photo source: Shutterstock)

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