The first day of the New Year brings news for Romanians who have received loans with variable interest rates, namely IRCC increases from 4.06% to 5.71%. Loan officers come with an offer that can help you.

What decisions do Romanians have regarding IRCC-reported loans?

Experts recommend that people refinance loans now and choose a fixed rate. By refinancing, borrowers can freeze interest rates on their chosen fixed rate for a period of 3-5-8-10 years or more, avoiding that their rates will increase further in the future.

“The main option that Romanians with loans reported to the IRCC have is a simple and convenient one, through which they can protect themselves from the consequences of an increase in the index, namely by refinancing into a fixed interest loan. A fixed rate provides the borrower with a safe and stable structure, protecting them from future IRCC fluctuations and keeping their rate at the same level throughout the fixed rate period. I still recommend a fixed rate refinance, at least for 3 years, because IRCC doesn’t seem to decrease even from April 1, 2023, and will remain around 6%, and we can’t yet predict the rate of decrease, whether it will be accelerated or slow . The main advantage is that borrowers gain time and security, because during the period of fixed interest the banking market will stabilize, IRCC will decrease and the variable interest rate will decrease,” explains Valentin Angel, CEO and founder of AVBS Credit.

Those affected by the IRCC increase can thus lower their loan rates and then temporarily “freeze” them by refinancing at a fixed interest rate.

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