Local lender Piraeus Bank decided yesterday to reduce the down payment for real estate payments for mortgage loans from 40% to 20%.

BCR, the largest Romanian bank based on its assets, had previously announced that it would cut the down payment from 35% to 25% for mortgage assets located in Romania’s big cities.

The two lenders are no exceptions. Almost all banks now consider reducing the down payment, according to representatives of the banks’ association (ARB), reports local Ziarul Financiar.

“It’s a sign that banks want to give loans and enter the market again,” said Liviu Andrei, Alliance Finance Broker co-owner.

After the giving-in-payment law entered into force on May 13, most local lenders increased the down payment for mortgage loans, which has almost completely frozen mortgage lending. BCR, for example, decided to raise it from 15% to 35% in May whereas Piraeus increased it to 40%. BRD, the second largest local lender, said at the end of June that it was pondering the idea of reducing the down payment for mortgage loans.

editor@romania-insider.com