Euro remains favorite currency for mortgages

The preference of Romanians for euro loans is justified by the calculation of home prices and utility prices, including telecom costs, in the European currency, said the Manager of Bancpost’s mortgage division, Ana Cernat.
A similar trend was registered years ago, when loans were granted in dollars, as prices then were calculated in the U.S. currency.

Lenders say they are facing a legislative problem in terms of mortgages, especially when dealing with real estate developers. The head of BRD Groupe Societe Generale’s Department for Product, Marketing and Strategy Development, Rozaura Stanescu, said banks cannot register a mortgage for an individual client who plans to buy an apartment in a residential complex that is not yet finalized, especially when the developer is also borrowing money to build the complex.

Furthermore, differences in Romanian and European legislations do not allow banks in EU countries to grant mortgages in Romania, according to the central bank’s spokesman, Mugur Stet.