Romania Insider
New Home to replace First Home state-backed mortgage program in RO

After the former Social Democratic Government wanted to turn the First Home state-guaranteed mortgage program into a social program, the Liberal Government is going to add a second dimension to it - for more expensive, new housing units.

Thus, under the draft discussed by the Government on July 22, the program will differentiate between those buying old apartments and those willing to buy a new apartment.

Those interested in the old version of the program will see the limit of the mortgage loans increased by one quarter from EUR 57,000 to EUR 70,000 and must make a front payment of only 5% (in line with the previous provisions), Profit.ro reported.

However, those interested in new apartments can borrow as much as EUR 140,000 but must come up with a 15% down payment.

Although they still must be individuals buying their first property of over 50 sqm, such customers are significantly different from the medium-income households addressed by the initial program.

In principle, this might lead to a rise in the prices of new apartments compared to old flats - but the magnitude of the effect remains unclear.

As with the First Home program, the authorities have multiple targets: helping households buy homes and developers survive. 

(Photo: Pixabay)

[email protected]

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Romania Insider
New Home to replace First Home state-backed mortgage program in RO

After the former Social Democratic Government wanted to turn the First Home state-guaranteed mortgage program into a social program, the Liberal Government is going to add a second dimension to it - for more expensive, new housing units.

Thus, under the draft discussed by the Government on July 22, the program will differentiate between those buying old apartments and those willing to buy a new apartment.

Those interested in the old version of the program will see the limit of the mortgage loans increased by one quarter from EUR 57,000 to EUR 70,000 and must make a front payment of only 5% (in line with the previous provisions), Profit.ro reported.

However, those interested in new apartments can borrow as much as EUR 140,000 but must come up with a 15% down payment.

Although they still must be individuals buying their first property of over 50 sqm, such customers are significantly different from the medium-income households addressed by the initial program.

In principle, this might lead to a rise in the prices of new apartments compared to old flats - but the magnitude of the effect remains unclear.

As with the First Home program, the authorities have multiple targets: helping households buy homes and developers survive. 

(Photo: Pixabay)

[email protected]

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