Full driving program First House

What is the first home program?

The Prima House program is a useful way in which it is possible to buy a new home with the help of a loan guaranteed by the state. Through this program, those who have not kept a house or who have a house less than 50 square meters can buy a new house through a small mortgage loan and an advantageous interest.
The Prima House program supports the purchase of new houses, both for the benefit of buyers and to the advantage of sellers or real estate developers. In particular, the first house is a support offered by the state to renew accommodation and support the properties.

The first home 2025 program turns into the new home program

This program offered the opportunity to buy real estate buildings with a small early and preferential interest in 2009. But in July 2020 the Primo House program was replaced with the new House program.
As the representatives of the National Credit Guarantee Fund declare, the new house supports those who wish to buy a modern house, this program is adapted to the current requirements.

What are the conditions I have to meet to access the new program of the 2025 house?

The legislative framework of the new chamber program

The new House program is regulated by law no. 40 of 2 April 2020, modifying and completing the emergency order of the Government n. 60/2009 and by the emergency order of the Government n. 60/2009.

Find out how to calculate loans for housing construction, depending on the indicators Robor and IRCC, to make you an estimate closer to the reality of your future real estate credit through this program. Once you have learned these important details, you can opt for the right home version for you.

The new house offers the possibility of buying a new home up to 120 square meters, within the limit of 140,000 euros (the Prima House program required a limit of 70,000 euros). Therefore, this new program is much more generous both as regards the surface of the new house and the amount that can be granted by the real estate credit for the program and the value of the guarantee offered by the State reaches 80% of the credit value.

But if you buy a new house of maximum 100,000 euros, the state will guarantee a percentage of 60% through the new home program, respectively 50% in the case of a new home of 70,000 euros maximum. The minimum progress of 5% of the value of the house is maintained as a structure in this program.

For the year 2020, the guarantees granted by the State through the new program of the Chamber amounted to a total of 2.1 billion of her and for 2025 the assigned ceiling is 1.5 billion of her.

The new house allows the purchase of newly built or consolidated houses. Therefore, only new houses can be purchased, received maximum 5 years before the credit request, or consolidated houses and/or works to reduce seismic risk, also received 5 years before the credit request.

The new House program was designed following the statistics that show the poor quality of the living in Romania, compared to other European states, and the percentage of guarantee by the state increases therefore since the newly acquired house has a higher price and implicitly a higher area.

The conditions of participation in the new home program are:

• The applicant should not hold back or possess a house greater than 50 square meters
• Acquire or build only a house through this program
• Have the quality of loan in relation to the financier

The wage conditions that allow access to the new domestic program

From 1 January 2019, the NBR has limited the degree of debt for the acquisition of the first home to 40% of the revenues, which means that if you access the new home program, you must fall into this percentage with your revenues.

However, anyone who has a stable income can access the new home, the differences are found only in the amounts that can be borrowed from the bank based on each income.

Here are all the conditions of the new House program:

• You must be a Romanian citizen
• You don’t have to own or not have a single or common with her husband/wife more than 50 square meters
• Not having or having had another mortgage loan through the first program
• In order to pay the minimum advance of 5%

Maximum age to access the new home program

There is no maximum age until you can access a real estate loan through the new House program, provided that you fall in all other conditions.

You must keep in mind that a real estate loan can be granted for a maximum period of 30 years, so if you have a lower income, you can opt for the maximum loan period, provided that it does not exceed the degree of debt of 40%.

But if you have a more generous income, you can opt for a lower loan period, for example 25, 20 or even 15 years, provided that it does not exceed the maximum percentage.

All these conditions are closely related to the maximum age in which it is possible to access a real estate loan through the new house program. Therefore, if you opt for the maximum loan period for 30 years, you can request this credit to the last 30 years before the pension era, or 33 years in the case of women and 35 years for men.

How will I pay a building purchased through the new house program?

When you buy a building through the new house program, you must give an advance before the complete payment. This advance can be between 5% and 15% and is paid to the seller, whether owner or developer.

This advance is paid after a pre -stop written on the notary and signed by both sides. This pre -contract must be sent following the bank to obtain credit.

This pre-contract can be defined as a promise of payment and is an official act with which you, the buyer, are committed to buying the house and the seller undertakes to sell you and not someone else.

In the pre -contract it is mandatory to mention the following: the complete data of the buyer and the seller, the data of the object of the sale (accommodation), the amount of the sale, the currency in which the house will be paid and the date on which it will be paid. Of course, the pre -counter can include other private clauses.

At the time of the approval of the real estate loan, the new house can be stipulated the sales purchase contract. This operation is performed in front of a notary, but the notary can go directly to the bank, together with the seller and the buyer, to save time and send the documents directly to the bank.

Subsequently, the seller receives the amount requested for the house, after the advance has been deducted, in the account transmitted to the bank.

Credit New House to her, payment in euros

Credit Credit New House

You can do a credit simulation at any time and in any bank through the new home program you want to access. It is not necessary to go to a branch, you will find a credit computer on the bank’s website and this will help you know exactly what the monthly rate you will pay will be.

What should the pre -craticate not to pay for the difference in money after the changes?

Among other things, the pre -counter must also enter into the price of the building. The pre -contract also mentions the progress, which will subsequently be low from the total price of the house.

Not infrequently, the seller asks to ask for payment in foreign currency, which more often in euros. If you want to access the real estate loan in foreign currency, you do not have to worry about the difference resulting from the changes, but the recommendation of specialists is to request the credit in currency in which the revenues are collected to avoid increasing tariffs in case of fluctuations of the foreign currency.

But if you request the credit in her and the seller wishes payment in euros, you have two options: you can request a preferential exchange rate (for great amounts) or you can add the exchange rate for mutual agreement to the pre-

In the first situation, the fluctuations of the exchange rate can make you pay more on that house. As a rule, it takes in 1 and 2 months from the moment in which the pre-contract is signed with the seller and the moment when the new house is approved and you can establish the sales purchase contract. During this period, the currency in which you have to pay the house can be appreciated, so that the difference resulting from the exchange, is and preferential, will be supported by you.

In the second situation, the fluctuations of the exchange rate will not influence you. The recommendation of specialists if you have a real estate credit to her and you have to pay the seller in foreign currency is to enter into the exchange rate in the pre -stop. Therefore, both parties will decide on the exchange rate to which the seller will receive the money and if the currency is appreciated, you will not pay the difference. Of course, if the currency is cushioned it will be to your advantage, the buyer.

What exchange rate is used for the sale/purchase of a building through the new house program?

If you buy a house through the new House program and the seller wishes to pay in foreign currency, then the exchange rate to which this transaction is made is that of the bank that is made. If the advance must also pay it in foreign currency, it is possible to carry out the currency conversion into an advantageous currency path and for small amounts.

How can I get a preferential change for the purchase of a building through the new house program?

Find out what advantages you have chosen the bank in terms of a preferential currency course. Most banks offer advantageous currency exchange for small amounts or the possibility of negotiating a preferential currency course for great amounts.

For example, Unicredit Bank offers, through the Geniuscont current account, a Happy Hour program between 13:15 and 14:15, where you can carry out foreign assessments The BNR exchange rate. In addition, Raiffeisen Bank’s customers can benefit from the bank intelligent hour, which allows through the intelligent mobile application or by Raiffeisen Exchange online of Lei-Euro or Euro-Lei at the BNR course Between 10:00 and 11:00.

CEC Bank also offers a more advantageous exchange of currencies if it is made online and not at the counter, via Internet Banking, Mobile Banking and Telefonte Banking, as well as Banca Transylvania meets you with a negotiated exchange rate in case of great amounts, exceeding 10,000 euros. And to Eng you can enjoy a personalized currency course if you collect your salary in this bank. You will be able to sell or buy currency in a personalized currency course, within the limit of 10,000 she per month.

To pay the foreign currency, you can use other tools that offer an advantageous currency course, such as Revolut. You will not like a currency course like the NBR one, but you will not be limited by a time interval if you want to change money via revolut.

As for the complete payment of the house purchased through the new house program, it is possible to request a preferential exchange rate directly from the bank’s official to which the credit is made or through its call center. In general, any bank will give you a preferential currency course for great amounts, thus including over 10,000 euros.

Conclusions

The purchase of a house through the new House program offers many advantages, from the advantageous interest to a low advancement, thus stimulating the purchase of new buildings. And to be sure that additional expenses will not appear, such as those due to exchange differences, we advise you to pay more attention to the documents you need to develop for the purchase. Fortunately, there are simple solutions that will help you minimize costs when the exchange rate intervenes in this purchase.