Romania Senate adopts lower down payment for young buyers

The Romanian Senate has passed a legislative proposal to reduce the minimum down payment for the ‘Noua Casă’ (New House) program for individuals under the age of 35. Under the current regulations, buyers seeking financing between 70,000 and 140,000 euros must provide a 15% down payment, while those seeking up to 70,000 euros only require 5%.

The new measure would allow eligible young buyers to opt for a 5% down payment even for properties in the higher financing bracket. Proponents of the bill, including members of the PSD, PNL, USR, and UDMR, argue that the change will facilitate access to homeownership for young professionals with stable incomes but insufficient accumulated capital, potentially reducing pressure on the rental market.

However, the proposal has faced criticism from the National Bank of Romania (BNR) and the Government, who warn that reducing down payment requirements could contravene prudential principles and potentially drive up real estate prices. The bill must now be reviewed and voted upon by the Chamber of Deputies before it can become law.