Mortgages for Romanian property
The mortgage market in Romania is still in its infancy. It has however just become possible for non-Romanian citizens to obtain a mortgage without the need for a Romanian guarantor.
Most mortgages in Romania have a maximum duration of 25 years and you have to be under the age of 65. Based on the experience of other countries, the rapid growth of the mortgage market is likely to have a large impact on house prices.
Mortgages for non-Romanian citizens
How to get a morgage in Romania
Romdeals Property will help you throughout the mortgage applications. Mortgages can be only obtained on built properties. Until completion we can offer a bridge loan.
1st Step prepare the following documents:Passport and Drivin License
National insurance number
P60 or P45
Marriage Certificate(if maried)
Official Letter from your employer stating that you Mrs/Ms X has been working with them since X as X(position held) for the duration of X(contract details)and state your net monthly salary
6 months of salary slips in order to date
6 months of bank accounts statements(to correspond with salary entering accounts)
2nd Step open a bank accountWill be requested to go to the local bank in Romanian with your passport to open a bank account
3rd step pre-offerThe bank will provide you with a pre-offer starting the mortgage amount that you can get.
Exchange rate risk
Exchange rate risk is a fact of life when purchasing properties in a currency other than your own. Rate fluctuations may work in your favour or against you so it is important to be aware of the risks and the potential consequences. For example in 2004 the variation in the GBP-EUR exchange rate was 8.3%. Under this scenario the Sterling value of a EUR 100,000 property would have fluctuated by GBP 3,888.
One way to manage adverse currency fluctuations is to ensure that you have sufficient funds available to absorb any extra costs. Alternatively a forward deal can be put in place with a foreign exchange company to secure a set rate at some future date (up to 2 years in advance). Should you wish we can recommend a number of suitable firms.
However, the best way to hedge against the currency exchange risk is to simply exchange your sterling or euro amount to ron (Romanian currency) and place it in a high savings account which will pay more than 10% interest (as of today 11.04.2008). The EURRON or GBPRON rates are expected to fall in the next few years and as well with the interest received this will considerably improve your purchasing power, in most cases by more than 15%!