Although the balance kept growing, mortgage loans saw, in June, this year’s first month-on-month decline. Thus, mortgage loans increased by RON1.3 billion in May, while in June, they were lower by RON200 million.
New mortgage loans granted in June 2016 reached RON1.1 billion and the average value of a mortgage loan stood at RON250,000 (EUR50,000), which means banks in Romania sold nearly 4,400 leu-denominated loans for the purchase of homes. Compared with May 2016, the number of mortgage loans fell by approximately 800.
Most loans were probably granted under the government-backed mortgage lending First Home program, considering that over the last years, the program was the main lending growth driver.
Foreign currency loans reached RON31.4 billion (EUR7 billion) in June 2016, down 9% from the year-earlier period.