After 2023, when banks mainly refinanced loans, 2024 does not seem to be the year Romanians are going to buy homes. Funds for the New Home program were reduced with a guarantee ceiling of 1 billion lei, which is 0.5 billion lei less than in 2023.

And the minimum income required for those who want to buy a house with a Noua Casă loan has increased compared to last year. But which financing methods are better?

As interest rates are still high and the National Bank of Romania shows no signs of lowering the key interest rate, a mortgage loan is a win-win solution for those who intend to buy a home, explains Iryna Kitsu, financial analyst and director of Finzoom. .ro platform.

According to the expert, the only advantage of the Noua Casă loan is the 5% advance on houses with a maximum value of 70,000 euros, an object that supports young people aged 26 to 35. “It is important to compare offers on the market and choose those with the lowest effective annual rates,” says Iryna Chitsu.

Panorama: Which method of lending for the purchase of housing will be more appropriate in 2024?

Iryna Chitsu: First of all, it would be advisable for a person who wants to get a loan to make certain strict calculations. It is not important to look only at the type of loan or the amount she can get from the bank, but it is important that she pay attention to her own budget so as not to over-indebt herself, in the sense that the rate should not be more than 25% of her salary.

It is important to compare the offers that are currently on the market and, choosing one of them, try to eliminate as many risks as possible.

Panorama: What would they be?

Iryna Chitsu: It is necessary to exclude the interest rate risk, to borrow at a fixed interest rate as low as possible. Banks currently have fixed rate initial offers even lower than the IRCC and ROBOR indices. Then there is exchange rate risk. It is not recommended to borrow only in the currency in which you receive your income. By adding unemployment, life or health insurance to your loan, you can eliminate the risk of reduced or lost income.

Then you compare the offers in the market and choose the ones with the lowest effective annual percentages. Obviously, this also depends on your own income. In general, basic income is taken into account, but there are also banks that, up to a certain percentage, also consider income from rent, royalties or food vouchers.

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