The third-biggest Romanian lender BRD has launched a new mortgage loan for customers who wish to acquire their first home. This is called “La Casa Mea” (meaning At My Home), and was designed as an alternative to the famous state-backed First House program, which is expected to reach and end in the next years.

People who want to access the new BRD mortgage loan program should have never owned a home before, not even together with their spouses. They can acquire a loan ranging between EUR 10,000 and EUR 100,000, with a maturity of maximum 30 years. The minimum down payment amounts to 15% and the interest rate is 2.25 percentage points over the interbank rate ROBOR for 3 months. The program is addressed only to BRD customers who get their salaries in BRD bank accounts.

“The new credit product is more flexible than the First House loan: the maximum sum that can be obtained is higher, the acquisition planning doesn’t depend on the availability of state funds, and the period for granting the financing is significantly shorter,” according to BRD representatives.

The Finance Ministry considers gradually reducing the funds for the First House program in the next years. The program has been the main driver of the local banking sector and residential real estate sector after the financial crisis. Local banks have granted about 200,000 loans worth RON 34 billion within the First House program since its launch in 2009. The state guarantees for this program have amounted to RON 17 billion, so far.

Romanian lender BRD sees 63% higher profit in 2016, offers 6.2% dividend yield

Romania's First House program has total funds of RON 2.67 bln

editor@romania-insider.com