OTP Bank Romania is welcoming credit applications for the purchase of housing through the Noua Casă Program (New House), as one of the participating banks in this year’s edition of the program, for which the Ministry of Finance has prepared a 1.5 billion lei guarantee ceiling, a press release issued by the financial institution informs.
OTP Bank grants loans for the purchase of housing through the Noua Casă program with the same interest rate as last year, respectively the fixed margin of 2% to which IRCC (Reference Index for Consumer Loans) is added. This type of loan has no analysis or administration commissions or fees, as the only commission is due to be paid to FNGCIMM (National Credit Guarantee Fund for SMEs) for the management of the guarantee granted by the state. This fee was reduced to 0.3% in 2021.
“We are a traditional FNGCIMM partner and a consistent financer of the Noua Casă program, through which an important segment of customers can purchase houses under special financing conditions, with state-backed guarantees. In 2021, after a year of pandemic and pending projects, it is even more important to support the fulfilment of our clients’ specific objectives, to ensure the proper functioning of the program and to quickly distribute to the beneficiaries the allocated funds”, said Roxana Hidan, Deputy General Manager of OTP Bank Romania, Retail Division.
Regarding the necessary down payment, for the purchase of a house with a value of up to 70,000 euros you need 5%, equivalent to lei, while for homes with values between 70,001 and 140,000 euros, equivalent to lei, the minimum down payment is 15%.
The calculation examples show us that for a loan worth 221,000 lei, for a period of 30 years, the customer will benefit of:
- Variable interest rate: 3.67% (2% interest margin + IRCC),
- Effective annual interest rate (EAR): 3.73%,
- Monthly rate: 1,013 lei (repayment method in equal instalments + interest),
- Total cost of the loan: 143,852 lei,
- Total value paid: 364,852 lei.
The annual management fee for FNGCIMM, of 0.30%, ads to this and is calculated considering the value of the guarantee.
For customers who do not qualify for the Noua Casă Program, OTP Bank offers alternative financing instruments, such as the standard mortgage loan, available either with a variable interest rate for the entire term of the loan or a fixed interest rate for the first 5 years. While choosing the variable interest rate, it will be between 4.49% and 5.79%, with EAR between 4.62% and 6.07%. Choosing a fixed interest rate for the first five years, it will be set between 5.19% and 6.49%, with EAR between 5.35% and 6.81%. For the standard real estate loan, the minimum down payment is 15%.