Mortgages in 2026, simply explained

A mortgage is taken out for 25 or 30 years. An hour spent on the figures is worthwhile before your first viewing, before you fall in love with a house.

How much you can borrow

The bank looks at your net monthly income and your existing repayments. National Bank rules limit all repayments to approximately 40% of net income for a loan in lei, with a slightly higher allowance for a first home. This determines the maximum amount. A pre-approval gives you the exact figure in one or two days.

The deposit

For a loan in lei for the home you live in, the deposit is usually 15% of the price. For a second home or a loan in euros, banks require more. Part of the deposit, usually between 5% and 10%, is paid when the preliminary sale agreement is signed.

Besides the deposit, set aside money for the notary, land registration, valuation and moving. A cautious estimate is another 2–3% of the price.

Fixed or variable interest

• Fixed for the first few years (3, 5 or 10 years): the monthly payment does not change during this period, then switches to a variable interest rate.
• Variable: usually starts lower but follows the reference index and can rise.

If your monthly budget has little room to move, a longer fixed period gives you peace of mind.

How to compare two offers

Do not compare them by the monthly payment. Compare the annual percentage rate (APR) and, above all, the total amount payable over the entire mortgage term. This includes fees, insurance and interest after the fixed period. Two offers with the same monthly payment can differ by thousands of euros in total.

Insurance

All banks require mandatory home insurance and additional buildings insurance. Many also require life insurance. Ask whether you can arrange these with another insurer: it is sometimes cheaper.

The order of steps

1. Pre-approval, before you start looking.
2. The preliminary sale agreement, with a financing deadline written into it.
3. The property valuation, carried out by a valuer accepted by the bank.
4. Final approval, usually within one to three weeks.
5. Signing at the notary, with the sale contract and mortgage signed on the same day.

We can work out how much you can borrow: write to us or read about our mortgage advice.