Mortgage loans continued to increase despite banks running out of First Home funds in July-August and the rising interest rates. The leu mortgage loan stock is 37% higher than in October 2016 and 2.7% higher than in September 2017.
“Demand for homes and mortgage loans remains high and the supply of homes is still lower than demand. Unless there are major imbalances in the economy, I expect the mortgage loan stock to continue to increase,” says Anca Bidian, CEO of loan broker Kiwi Finance.
Loan brokers say they have seen more and more debtors go for fixed interest loans for five to seven years, despite the interest rates being higher than variable rates.
With the First Home funds having run out, the only option to a buy a home with borrowed funds is the standard loan, which comes with comparable costs to the First Home loan. The major difference between the two is the required down payment. (EUR1=RON4.6416)
(English version by Loredana Fratila-Cristescu)