Later edit: Make sure you get to filling your paperwork as-soon-as-possible, because it's very likely that the Prima Casa program will shut down, and the banks already started to increse the amount for the downpayment.
You’ve decided that you want to buy a home, but you’re not sure how to finance it. One, and in most cases the only, option would be getting a bank loan.
The first thing you should do is don’t let the thought that you’ll be indebted for the next 30 years get you down! If you’re not paying for your own property, you’ll be paying for someone else’s - if you rent. So it’s important to have the right mindset...and salary, of course.
We recommend to first ask someone in the HR department from your workplace if there is an agreement between your employer and a certain bank. If there is, that convention might get you some decreased interests and fees for your loan.
If there is no such convention, you should take a look at all the banks and compare fees, interests and the monthly amounts you’ll have to pay.
There are several types of loans for which you can apply, but each one has advantages and disadvantages.
The most common type is Prima Casa program. You can access it if you haven’t owned any property before, or if you did, it must’ve been smaller than 50 mp. Also, for Prima Casa, you need a down payment of 5% to pay to the sellers.
Keep in mind, apart from the 5%, you’ll need to pay bank & notary fees, and the real estate agent, if you had one. Unfortunately, Prima Casa only pays for the property itself, not renovation and other fees. So you’ll have to have some money apart from the 5%. These you can get with a Private Needs credit.
We recommend using a simple table, with all the banks you’re interested in, to give you an overview of who has the lowest fees, rates and installments.
You can use their online calculators to find this information.
Banks will also offer you special rates if you get your salary with them. Make sure, by asking your employer, that you can switch the salary accounts.
Let’s compare 5 banks, for a 224.000 lei (around 50.000 euro) Prima Casa loan, on a period of 360 months, to see how much the monthly installment will be for you.
Monthly installment without parked income
Monthly installment with parked income
From the five, it’s obvious that Alpha Bank has the best installment. Yet, keep in mind that the interest can fluctuate, so it’s better to talk with someone from the banks that could give you all the information you need.
After you choose a bank, it’s a straight line of bringing documents to the bank, signing papers and notary trips, for a month or two.
After the bank confirms you that they have sent your file to FNGC, you can check online to see when your Prima Casa credit is approved.
It can take up to two months to get it approved, and up to 30 years to get it paid. But there are few things in life that can make you feel as proud as being a homeowner!