In the first quarter of 2017, the number of standard mortgages continued to rise. Housing in new residential neighborhoods led to a 12 percent average growth for a mortgage, up to a value of RON 250,000 (EUR 54,000).
One of the largest credit brokers in Romania, KIWI Finance, worked on loans worth a total of RON 142 million in Q1 2018, a 39 percent growth compared to the same period of 2017. The highest growth was seen for mortgages, with 451 loans worth a total of RON 110 million, a 50 percent rise from Q1 2017.
“The demand for mortgages continued to increase in the first quarter of this year. The popularity of new projects on the real estate market, although still much lower than the demand for new housing, fuelled the increase of transactions through mortgages to the highest level in the last nine years. The higher real estate prices, especially in the premium areas, led to a 12 percent higher average value for mortgages compared to last year,” said Anca Bidian, CEO KIWI Finance.
In the following period, it is possible for the average interest rates to grow slightly, but even so the banks’ offers continue to align with the population’s incomes as well as with the real estate market, according to Anca Bidian. She also believes that this trend will probably continue until the end of this year, with a higher demand for mortgages, construction loans or personal needs loans.
KIWI Finance ended 2017 with a turnover of RON 13.25 million, 21 percent higher compared to the previous year and a volume of brokered loans of RON 562 million, which was 27 percent higher than in 2016.