Libra Bank is the only bank in Romania that offers mortgages to foreign non-residents
Libra Bank is the only bank in Romania that offers mortgages to foreign non-residents

Mortgage in Romania as a foreigner: everything you need to know

Learn everything you need to know about getting a mortgage in Romania as a foreigner in 2024, including requirements, mortgage rates, and tips.

Delia Mihuț
Written by: Delia Mihuț
Published at 2024-08-13
Last updated on 2024-08-13
Readtime 3 minutes

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. 

Can foreigners get a mortgage in Romania?

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. 

Which banks in Romania offer mortgages to foreign non-residents?

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%.

What are the main requirements for a mortgage in Romania?

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:

  • your income must come from individual employment contract;
  • 10,000 RON/contract minimum net income; 
  • 1500 RON/contract at least, for income that comes from rental contracts for properties owned on Romanian territory; 
  • 15 years crediting period – at the end of the loan, you’ll need to have 63 years unfulfilled; 
  • the eligible income is calculated based on the average of the last 12 months, but not more than the last received income.

Necessary documents for non-residents

  • valid identity card for your residency country;
  • valid passport and identity card for foreign citizens, members of the EU, the United Kingdom and Israel;
  • proof of income;
  • employment contract;
  • credit history.

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. 

What are the current mortgage rates in Romania?

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.

Homevest digitalizes the mortgage process in Romania, directly from abroad 

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.

What are the best places to invest in real estate in Romania?

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:

City
Average price per m²
Pros
City
Bucharest
Average price per m²
€1.762
Pros
  • higher paid jobs
  • numerous cultural attractions
  • dynamic real estate market with high rental demand
City
Cluj-Napoca
Average price per m²
€2.771
Pros
  • lots of tech companies
  • strong job market
  • growing student population that ensures a steady rental demand
City
Iași
Average price per m²
€1.640
Pros
  • a cultural and educational city
  • affordable real estate investments
  • growing area with lower entry costs
City
Timișoara
Average price per m²
€1.625
Pros
  • diverse architecture
  • designated European Capital of Culture
  • affordable real estate investments
City
Brașov
Average price per m²
€1.934
Pros
  • popular mountain destination
  • medieval architecture
  • lots of outdoor activities
  • steady influx of tourists and new residents attracted by the beauty of nature
City
Constanța
Average price per m²
€1.660
Pros
  • popular sea destination
  • the largest city port on the Black Sea
  • offers a seaside living that attracts both tourists and new residents

How long does it take to buy a house in Romania?

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.

 

Sources used:

  1. Libra Bank - Real Estate Investment Credit 
  2. IRCC value
  3. Price per m2 in Romanian cities
 

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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