The „New House” allows the purchase of new homes, with a maximum value of 140,000 EUR and a minimum advance of 15%. The metodological rules for application are to be published within 30 days.With approximately 96%, Romania ranks first in the EU, in terms of the percentage of the population living in purchased houses.
At the end of last week, after several publicly presented versions, the Government Emergency Ordinance on the modification of the „First House” program from 2009 was published, which became „A Family, a House” in April of this year so that it can now be renamed „New House”. The methodological rules for approving the new Ordinance are to be published within a mximum of 30 days, i.e. by the beginning of September 2020.
Among the most important changes is that for new homes, i.e. those that were completed no more than 5 years before the financing application, the maximum amount financed is EUR 140,000, of which the minimum advance is EUR 21,000 (15%). The category of new homes also includes those subject to intervention works in order to consolidate and/or reduce the seismic risk, which were received no later than 5 years prior the financing application. The state, through the Ministry of Public Finance, will guarantee a maximum of 60% of the financing granted by the credit institution.
For old homes, the amount financed can be a maximum of EUR 70,000, and in such a case, the percentage of the advance to be paid by the buyer is a minimum of 5%.
In the event that the contract of sale is terminated due to hidden defects in the home, the buyer is entitled to a second home guaranteed under the program, only if the first credit has been extinguished.
In case of early repayment before the end of a 5-year period, no early repayment fee will be charged. The homes purchased under the program cannot be alienated for 5 years.
In order to benefit from
the provisions of the new Ordinance, the individual must not own alone or
together with his or her spouse, more than one dwelling larger than 50 square
meters usable area.
According to Eurostat data,
approximately 96% of the Romanian population lives in houses they own, the
highest percentage in the European Union, the average percentage being
approximately 70%. By comparison, in Germany the percentage is about
51%.