One in ten Romanians wants to refinance loans at lower cost

A mortgage for the acquisition of an apartment can be refinanced if the new loan is at least equal to the necessary amount for an early payment of the old loan (the remaining amount from the initial loan, interest rate and potential commissions and penalties). In order to calculate the maximum amount for which the client qualifies, banks will ignore the monthly installment for the loan to be refinanced.

The first step is to file a request for such a loan at a bank. Following formal approval of the loan, the client must provide the necessary documentation and an analysis of the loan will be made. Normally, a new evaluation of the mortgaged property is necessary, and the associated fees are usually paid by the refinancing bank. Depending on this evaluation, the bank establishes a maximum amount for the new loan. When the loan is approved, the client must register a class B mortgage on the real estate property. The client then repays the remaining amount of the old loan, cancelling the class A mortgage registered in favor of the former lender, and the class B mortgage for the refinancing bank automatically becomes an class A mortgage.