Learn everything you need to know about getting a mortgage in Romania as a foreigner in 2024, including requirements, mortgage rates, and tips.
Looking to invest in Romania’s real estate market? Properties here can offer substantial earnings, either through rental income or property value appreciation.
Keep reading to familiarize yourself with the local mortgage market, property prices, and how to secure a mortgage in Romania for non-residents.
Yes. Foreign non-residents can obtain a mortgage, but options are fewer and terms more restrictive than for residents.
Buying rights differ for European citizens and those outside the EU.
Libra Bank is the only bank in Romania that accepts mortgage applications from foreign non-residents.
They offer loans for real estate investments by foreign citizens, available in RON or EURO.
This option is open to citizens of EU member states, the United Kingdom, and Israel, with a maximum repayment period of 15 years and a loan-to-value ratio of up to 70%.
For foreign non-residents, the requirements for securing a mortgage in Romania are more rigorous than those for residents.
Here are the key criteria you’ll need to meet:
You can add up to 2 co-debtors to strengthen your application, increase borrowing capacity, or meet the bank's financial criteria.
The co-debtors income will be considered, with a maximum age limit of 75.
Eligible co-debtors include close family members such as a spouse, life partner, adult children, siblings, grandparents, parents, son-in-law, daughter-in-law, and in-laws.
Libra Bank offers a variable interest rate of 3.4% plus the IRCC, currently at 5.86%.
This brings the total interest rate to approximately 9.26%.
Starting October 1st, 2024, the IRCC is expected to reach 5.99%, according to the National Bank of Romania (NBR).
Keep in mind that mortgage rates in Romania are influenced by several factors, including the base interest rate set by the NBR, inflation, and market conditions.
Mortgage rates tend to be slightly higher for non-residents due to the perceived risk of lending to foreigners.
If you’re looking to streamline the mortgage application process, Homevest offers a digital platform that saves you time and effort every step of the way.
Using Homevest, you can submit your documents online, track the progress of your application, and receive guidance from mortgage experts, all without needing to visit Romania in person.
If you’re considering investing in real estate in Romania, the cost of a property can vary significantly based on several factors. These include whether you’re buying an apartment or an individual house, the number of rooms, and whether it’s an old building or a recent construction.
To guide your search, you can refer to the average price per square meter listed in the table below:
The timeline for buying a house in Romania can take, on average, from 2 weeks to 2 or 3 months. This depends on factors such as the complexity of the transaction, the speed of legal procedures, and the funds available.
Buying property in Romania as a foreigner is a realistic and attainable goal.
To ensure a smooth experience, start by researching the mortgage rates in Romania, how much a house costs in Romania, property prices, legal requirements, and local market conditions.
Then, choose reliable partners to guide you through the process, such as the Homevest digital platform to simplify your mortgage experience, especially when managing it from abroad.
Everything is simple, fast, and without additional costs.
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We recommend obtaining professional or specialist advice before taking or refraining from any action based on the content in this article. The information in this article does not constitute legal, tax, or other professional advice from Homevest Limited. Prior results do not guarantee a similar outcome. We make no representations, warranties, or guarantees, whether express or implied, that the content in this article is accurate, complete, or up to date.
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