The Romanian state will gradually reduce the guarantees for mortgage loans granted through the First House program starting January 1 next year, according to the National Credit Guarantee Fund for small and medium-sized companies (FNGCIMM).

The state thus aims to reduce its intervention on the mortgage loan market as the local banks’ standard lending product are now more accessible to the population. The program will try to focus more on helping people who have a real need for housing.

The new procedure aims to better use the ceilings allocated annually for the First House Program. It will develop criteria that will be the basis for assessing the activity of those granting loans, according to FNGCIMM.

Romania’s National Bank (BNR) has also recently said that the conditions for accessing the First House program need to be revised. The program should be oriented towards people with an income below a certain threshold, according to BNR.

editor@romania-insider.com