If you’re considering buying a home & you’ve heard about the “First Home” program (now known as the “New Home” program), you’ve come to the right place. In short, “New Home” is a Romanian government initiative that makes it easier for citizens to access mortgage loans for purchasing their first home by providing state-backed guarantees to banks. This often means you can secure a lower down payment and slightly more favorable lending terms compared to a standard mortgage.
Let’s dive into the details of what this program involves and what you should expect.
### Who Can Apply? This is likely the first thing you want to know. The program is mainly aimed at young people and young families, but it’s not exclusive to them. There are a few clear eligibility criteria you need to meet.
#### Eligibility Criteria for the Applicant
These are the essential conditions you must satisfy as an individual looking to access the loan.
– **Romanian Citizenship:** You must be a Romanian citizen with residency in Romania. Simple and straightforward.
– **Age:** Generally, there isn’t a strict age limit like in some other programs, but banks may set upper limits (usually up to 65-70 years old by the end of the loan term) to ensure there’s enough time for repayment.
– **Stable Income:** You need to prove you have consistent & sufficient income to cover the monthly payment. This includes income from salaries, pensions, rentals, royalties, etc.
Pentru cei interesați de condițiile creditului Prima Casă, un articol relevant care oferă perspective interesante asupra sistemului bancar din România este disponibil la acest link: Cum au ajuns băncile să câștige 2 milioane de euro pe zi din dobânda plătită de BNR pentru depozite. Acesta analizează modul în care băncile beneficiază de pe urma politicilor monetare și impactul acestora asupra creditării, inclusiv a programului Prima Casă.
Each bank has its own criteria for calculating the debt-to-income ratio, but essentially, you can’t spend more than a certain portion of your income (usually 30-40%) on loan payments.
– **No Previous Properties:** This is the most important condition of the program. You must not own any other home exclusively at the time of applying for the loan.
– **Exception 1:** If you own a share of a property (less than 50%) obtained through inheritance, you may still be eligible.
– **Exception 2:** For homes valued up to €70,000, this condition is strict—you must never have owned a home before.
– **Exception 3:** For homes valued between €70,001 & €140,000, you may be eligible even if you’ve owned a home before, as long as it didn’t exceed 50 square meters of usable space & was purchased through the “First Home” or “New Home” program. This exception is often a source of confusion, so it’s best to discuss it with your bank.
– **No Negative History:** You must not have a negative record with the Credit Bureau (meaning no significant delays in paying other loans or bills).
#### Criteria for the Purchased Property
Not every home qualifies for this program. There are specific rules regarding the property’s value and condition.
– **Property Value:** There are two value thresholds, each with a different down payment requirement.
– Homes up to €70,000: The minimum down payment is 5%.
– Homes between €70,001 & €140,000: The minimum down payment is 15%.
– **Note:** Properties exceeding €140,000 cannot be purchased through this program.
If the home you want is more expensive, you’ll need to consider a standard mortgage.
– **Construction Stage:** The property can be either completed or under construction. If it’s under construction, it must meet certain conditions regarding the physical progress of the work (usually at least 50-70% completed) and have a clear completion date. Banks will require specific documents in this case.
– **Location in Romania:** The property must be located within Romania’s territory.
### Required Documents
Getting a loan involves a series of documents. Don’t worry—most are standard paperwork you likely already have or can obtain easily.
Viziteaza si pagina noastra de Facebook pentru a lua contact cu experienta SelfCredit. pagina noastra de Facebook
Preparing them in advance can significantly speed up the process.
#### Personal Documents
These pertain to you and, if applicable, any co-borrower (e.g., spouse).
– **Identity Card:** A copy of your valid ID card.
– **Marriage Certificate:** If applicable.
– **Birth Certificate:** For you and, if applicable, any minor dependents (this affects certain tax deductions).
– **Affidavit:** A sworn statement declaring that you don’t own any other home exclusively, etc., according to the eligibility criteria. This is a key document in the “New Home” program and is completed at the bank.
– **Credit Bureau Consent:** A standard form you sign at the bank to allow them to check your credit history.
#### Income Documents
The bank will thoroughly verify your ability to pay.
– **Salary and Employment Certificate:** Issued by your employer, following the bank’s template. This must confirm your position, net monthly income, length of employment, & any deductions or garnishments.
– **Bank Account Statements:** For the last 3-6 months, showing the receipt of your declared income.
– **Other Supporting Documents for Income:**
– Pensions: Pension decision and pension slip.
– Rental Income: Rental contract registered with ANAF and, if applicable, the annual tax return.
– Self-Employment/Freelance Income: Certificates from ANAF, annual tax return, tax assessment decisions, etc.
– Per Diem Income: Supporting documents from your employer, contracts, bank statements.
#### Property Documents
These include all documents proving the property’s existence and legal status.
– **Preliminary Sale-Purchase Agreement (Promise to Sell):** Signed with the seller, outlining the price, terms, and conditions of the transaction. This is a very important document and often requires an initial deposit from the buyer, which is deducted from the total price. Make sure it includes a clause about obtaining the “New Home” loan.
– **Seller’s Title Deed:** Cadastral documents, land registry entry, previous sale-purchase contract, inheritance certificate, etc.
– **Current Land Registry Extract:** Valid for the property, issued by ANCPI.
Pentru cei interesați de condițiile creditului Prima Casă, este important să fie la curent cu evoluțiile din piața financiară, deoarece acestea pot influența semnificativ opțiunile disponibile. Un articol relevant care discută despre impactul dobânzilor și modul în care băncile profită de pe urma acestora poate fi găsit aici: cum au ajuns băncile să câștige milioane de euro. Informațiile prezentate pot oferi o perspectivă utilă asupra contextului economic actual și asupra deciziilor financiare pe care le pot lua potențialii cumpărători de locuințe.
This shows the property’s legal status (owner, encumbrances, mortgages).
– **Energy Performance Certificate:** Mandatory for any property sale.
– **Site Plan & Property Layout Plan:** Annex to the Land Registry.
– **Certificate from the Homeowners’ Association (if it’s an apartment):** Confirming no outstanding common expenses.
– **Tax Certificates:** From the Tax Authority, confirming the seller has no debts to the state and that the property is tax-registered.
– **Declaration on Property Ownership:** The seller will provide this at the notary, stating that the property hasn’t been sold through “First Home” before (if applicable).
**Note:** The exact list of documents may vary slightly from bank to bank. Always check the specific list provided by the bank you’re applying to.
### Associated Costs
Beyond the down payment and monthly installment, there are several other costs to consider. A realistic budget plan should include all of them.
#### Initial Costs
These are expenses you’ll incur before or at the time of signing the contract.
– **Down Payment:** 5% or 15% of the property’s value, as mentioned.
– **File Analysis Fee:** Some banks charge this, others don’t. The amount varies but is usually fixed (a few hundred lei).
– **Property Appraisal:** An ANEVAR-certified appraiser will determine the market value of the property.
The cost is a few hundred lei and is borne by the client.
– **Notary Fees:** These are likely the most substantial initial costs after the down payment.
– **Authenticating the Sale-Purchase Contract:** Calculated as a percentage of the transaction value and increases with the property price.
– **Authenticating the Mortgage Contract:** To secure the loan, the bank will enter into a mortgage contract on the property.
– **Registrations in the Electronic Archive of Movable Property Guarantees:** For the first-rank mortgage in favor of the bank and the second-rank mortgage in favor of the Romanian State.
– **Land Registry Fees:** At the Cadastre and Real Estate Advertising Office (OCPI), for registering the ownership right and mortgages in the Land Registry.
– **State Guarantee Management Fee:** Charged annually by the National Guarantee Fund for Small and Medium Enterprises (FNGCIMM), on behalf of the Romanian State, for guaranteeing your loan. It’s calculated as a percentage of the loan balance.
– **PAD Policy (Mandatory Home Insurance):** Insurance against natural disasters (earthquakes, floods, landslides) is legally required for any property.
#### Ongoing Costs
In addition to the monthly installment, there are other recurring expenses.
– **Interest Rate:** The interest rate is typically composed of a reference index (IRCC or ROBOR at 3/6 months) plus a fixed margin added by the bank. Most “New Home” loans use IRCC, which is generally a more stable indicator.
– **Monthly Account Fee:** Some banks charge a fee for managing the loan account.
– **Life Insurance (optional but often recommended):** Many banks require or strongly recommend taking out life insurance for the loan beneficiary.
Copyright © 2024 SELF CREDIT All Rights Reserved - Powered by 