BNR: Banks ease mortgage loan conditions in Q3

Newsroom 22/12/2016 | 11:59

Banks have eased significantly the standards for mortgage loans in the third quarter of this year, after two quarters in row of tightening conditions and this trend is set to continue in the last quarter, but to a more reduced degree, according to a survey carried out by the National Bank of Romania (BNR).

„The loan standards were eased significantly in the case of the mortgage loans and remained relatively unchanged in the case of the consumer loans. The banks anticipate that in the next quarter the easing tendency of affiliated standards for properties and lands’ loans acquisition, but with a smaller magnitude, while for the consumer loans there are no changes expected in the loans conditions,” says the survey.

The looser standards for mortgage loans have come after two quarters of significant tightening, according to BNR in the context of the laws adoption regarding the debt discharge law.

An important easing was in the third quarter of the year regarding the minimum down payment requested by the clients and the costs of the loan, besides the interests.

“The loans rate requested by individuals and rejected were in moderate growth in the case of mortgage loans and remained relatively constant in the case of consumer loans,” says the BNR release.

The survey was made quarterly by BNR in January, April and July, October and is based on questions sent to the first 10 banks. These lenders control 80 percent of the local loans market.

Georgiana Bendre