Romania’s Government-backed mortgage guarantees program known as “First Home” will have its terms radically amended and will be re-named “One Family - One Home,” the Chamber of Deputies has decided.

Essentially, the program will be dedicated to low-income families, particularly those with children, whereas it has been more general so far and aimed at helping all the parties - banks, developers and population, Profit.ro reported.

Furthermore, the program envisages financial subsidies extended to the recipient families depending on the number of children. The vulnerable families will have 2 percentage points (pp) of the interest rate financed by the state, which will also guarantee the entire loan (compared to 40-50% of the value of the loan guaranteed by the state under the First Home program).

However, only households with aggregate net income of under RON 4,500 (EUR 940) or RON 7,000 (EUR 1,450) in the case of families with children, qualify for the state guarantees program under the amended format.

The draft law was initiated by the former finance minister and Social Democrat senator Eugen Teodorovici. It was passed by the Senate last year and the Chamber of Deputies voted for it unanimously.

The bill only needs the president’s signature to come into force.

editor@romania-insider.com

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