Two Romanian lenders pull out of First House program

Piraeus Bank and Intesa Sanpaolo have announced that they would stop granting loans via the First House program. There have also been rumors about Alpha Bank wanting to exit the First House program. The banks have lost their interest because it’s a cheap product that doesn’t bring profit unless it’s sold packaged with other banking products, reports local Economica.net. The banks’ margins for this product amount to only 2.5%. For other products, margins reach 6-8%. Lenders have initially thought that they would be able to sell other products beside the First House, such as a credit card, a deposit insurance for children or a saving lending contract. However, people who choose to buy a house with a down payment of only EUR 3,000 have little resources for other investments or financial products. Several other banks have decided to stop selling mortgage loans in the country for Romanians working abroad. editor@romania-insider.com