The credit ceiling for the purchase of a home increased to 140,000 euros!
It is no longer called the “First House”. It is no longer considered and thought of as a social program to support those on low incomes. Not at all. The Orban government restarted the financing program in the field of housing acquisition, after consultations with real estate developers and the banking system, renamed it “New House” and increased the credit ceiling from a maximum of 65,000 euros to … a maximum of 140,000 euros!
The head of the Chancellery of the Prime Minister, declared a few days ago that the guarantee ceiling for the purchase of housing will, therefore, increase to 140,000 euros, with a state guarantee to cover 80% of the mortgage loan granted by banks to customers, with an advance from 5% – the same as before.
The executive’s movement aims to boost the real estate sector, which is in a state of relative expectation in the conditions of uncertainties triggered by the economic contraction of Romania and the European Union in general, amid the COVID-19 pandemic.
In the short term, an increase in prices is possible due to the revival of the appetite for real estate acquisitions, but in the medium and long term, the initiative of the government specialists provides for market stabilization, the government’s decision having a liquidity injection that could dynamize and rebalance the real estate field. It remains to be seen, however, what the Rules for the Application of the Ordinance in question will look like.