Intro
Since Romania's accession into the EU the banking sector has
experienced growing demand from foreign investors. As a result,
increased competition between the banks has driven down interest
rates and created better terms for foreign investors looking to
finance their investment in Romania. A choice of currencies,
interest only options and even 0% periods are just a few examples
of the commitment the banks are showing.
Availability
All mortgages in Romania are full status. This means that unlike
the UK, self certification is currently not available however this
may change in the near future. The banks are happy to accept
applications from the employed and the self employed without too
much documentation. The normal amount they will loan to is 75% LTV
but please note that they will only lend once property is
completed, therefore they will NOT make stage payments to
developers.
Cost
If you are happy to have your mortgage in Swiss Francs, which is
currently offered at a cheaper rate, then interest rates are
offered from 6.43%. Typically, early repayment charges apply for
the first 3 years and the banks' arrangement fees are usually 2% of
the loan amount. There is a valuation fee but this is only
approximately €200. We would recommend using an international
mortgage broker as they tend to have developed relationships with
the bank and can ensure that your application doesn't become
swamped in red tape.
Application Process
If you choose to use an international mortgage broker the
process of the application should usually take 2-3 weeks. You will
need to visit a notary in order to have the loan documents signed
once the mortgage offer is issued however this can normally be done
at the same time as you get other purchasing documents signed. In
summary, the process is on par with other Eastern European
countries and is pretty straightforward.
Mortgage Finance from Frontiers Financial Services
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