Romanian Government approves 5-year strategy for the “First House” program

Romania’s Government approved on November 29 the strategy memorandum for the “First House” program for the next five years. It provides total guarantees of RON 10 billion (EUR 2.2 billion), as well as the revision of the strategy two years after its adoption. In theory, 106,000 Romanians will be able to buy apartments and houses through the “First House” program, in the next five years. For the new homes, the guarantee level is kept at 50% of the property value whereas for the rest of them, the guarantee share drops to 40%. In 2017, the annual guarantee ceiling will reach RON 2.5 billion (EUR 554 million). In 2018, 2019, and 2020, the ceiling will drop to RON 2 billion (443 million). In 2021, the ceiling level will go down to RON 1.5 billion (EUR 332 million). The minimum down payment will be kept at 5%. The First House program was launched in 2009. Since then, over 198,300 guarantees worth EUR 3.75 billion have been granted. The total loans granted within the program amounted to EUR 7.5 billion. The program was launched during the crisis years to restart mortgage lending and stop the decline in the residential real estate market and construction sector. editor@romania-insider.com