Romania report: 63% of mortgage seekers opt for newer homes; 40% employed by multinationals

by   CIJ News iDesk III
2024-10-30   21:46
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A recent report by online mortgage broker Ipotecare.ro and SVN Credit Romania reveals a trend among Romanian mortgage applicants favoring newer homes: 63% of applicants are targeting properties delivered after 2010 or currently under construction, while 40% are employed by multinational companies. Another 18% work in state-owned enterprises.

The majority of mortgage applicants, aged 25-40, have stable incomes, with 79% earning a wage and 21% reporting alternative sources, such as freelance work, dividends, or copyrights. The average mortgage amount in Romania for 2024 is around EUR 62,000, contributing to the EUR 5.5 billion in total mortgage loans issued nationally this year. This represents a 49% increase compared to the same period in 2023, with the national mortgage balance reaching EUR 21.6 billion, a 2% rise from last year.

Of those seeking mortgages, 42% work in small businesses or have non-traditional income sources, while a notable 23% of buyers are opting for homes completed between 1978 and 2010. Just 11% are choosing homes built before 1978. The highest loan amounts are typically accessed by buyers over 45, who comprise 13% of the applicant pool. In contrast, younger buyers under 25 make up only 3.1%.

“The data confirms that purchasing a property with a mortgage correlates strongly with maturity and stability, both professionally and personally,” said Alexandru Rădulescu, managing partner of SVN Romania | Credit & Financial Solutions. He emphasized the importance of carefully planned decisions regarding mortgage financing, as these often influence buyers’ professional and personal trajectories.

Fixed interest rates continue to dominate, making up 98% of mortgages granted this year.

Ipotecare.ro, an online broker, employs advanced algorithms to tailor optimal financing solutions, while SVN Romania | Credit & Financial Solutions remains a significant player in the mortgage brokerage market, with over EUR 91 million in mortgages brokered in 2023 across its 17 offices in Romania.

Source: Ipotecare.ro and SVN Credit Romania

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