The First House program will have a total guarantee ceiling of RON 2.67 billion (EUR 591 million) this year.

Of the total amount, RON 2.5 billion represent the new funds allocated through a decision adopted by the Government yesterday. The remaining RON 175.5 million comes from the unallocated or unused funds in 2016.

The First House program, which aims to help first-time house buyers get cheaper mortgage loans by offering them state guarantees, was launched in 2009.

The Government now aims to push the financings from the First House program to new homes or apartments that have been strengthened against earthquakes. The state guarantees will thus be reduced to 40% of the loans’ value for the acquisition of houses older than five years. The guarantee will continue to cover 50% of the loans for houses that have been built or have been strengthened in the last five years.

The First House program is the only solution for many Romanians to get a mortgage loan and buy a house.

editor@romania-insider.com