Prime minister Emil Boc explained the government will impose banks some conditions related to the margins practiced, so that banks granting mortgage loans through the “First Home” program can apply a margin of maximum 4 percent per year over the EURIBOR interest rate at 3 months for credits in euros and a margin of 2.5 percent the most over the ROBOR rate at 3 months for credits in lei.
Thus, given the EURIBOR level of 1.28 percent on June 12, the annual interest rate for credits in euros will stand at maximum 5.28 percent, compared to 11 – 12 percent right now on the market, the premier explained.
It follows that the average cut of costs for a person through the “First Home” program stands between 42 percent and 49 percent for credits in euros, NewsIn states.
Boc explained that a person who wishes to take a mortgage loan of 50,000 euros for 25 years through the “First Home” program will make a downpayment of 5 percent and will pay a maximum 41,000 euros in interest for the period, compared to 81,000 euros under the current market conditions.
Another advantage is that more persons can become eligible for the loan, following the cut of costs with interest rates and commissions. For instance, for a 50,000 euro home, the minim required monthly income for a loan on 25 years and a 5 percent downpayment would be around 595 euros per family, compared to 863 euros required now on the market, said Pogea.
The lenders that want to participate in the program will need to have a national coverage, added Boc. Moreover, they will not ask for any commissions for anticipated payback and will not unilaterally modify the lending contract.
Banks have seven days after the decision is published in the Official Gazette to announce their intent to participate and to present their offers.
The persons who wish to contract such a loan must not have owned a property in the past or have contracted a mortgage loan.
People who wish to take a loan larger than 60,000 euros will make a downpayment of 3,000 euros plus the difference between the value of the home and 60,000 euros.
Thus, for a home worth 100,000 euros, the downpayment will stand at 3,000 euros plus 40,000 euros, as this program also has a social component, explained Boc.
Banks will set a type I mortgage right on houses purchased through this program during the entire period of the crediting contract, with the interdiction to sell the house for five years.
In lipsa unui acord scris din partea InternetCorp, puteti prelua maxim 500 de caractere din acest articol daca precizati sursa si daca inserati vizibil linkul articolului Interest rates for First Home program to stand 42 - 49% below the current market rates.