Volksbank has launched a new mortgage product for foreign investors in Romania that is being widely seen as a giant leap forward in the loans for foreign investors market.

We see this product as having real potential to open up the market to far greater competition in the near future. In fact it's almost inevitable that it will.

The offer is at a rate of just 3.99% for Swiss francs - against the usual mortgage rate of around 7%. The product offers an LTV of 85%, over a 25 year term, and is available until June 14, 2008.

Simon Blakeborough, Property Secrets' investment director, said: " This mortgage offer from Volksbank is exceptional - we've never seen anything like it before offered to property investors in Romania.

"We predicted it would only be a question of time before new products came to the market.

"The fact that a leading international bank such as Volksbank has gone to the market first, with such a good rate, means other banks will inevitably follow. This will create competition amongst the banks, fighting to get accounts from foreign investors.

"There has been so much misundertsanding among investors about the Romanian mortgage market. I've even seen some people talking about the need to own a company to buy in the country, which is nonsense. That's only for land.

"The fact is this market is changing and developing at an incredible rate, as we said it would - and this new product is a clear demonstration of this.

"This is a great time to invest in Romanian as we will see the mortgage market open up even more with increased competition, leading to even better offers for foreign investors."

All lending criteria for foreign buyers in Romania is increasingly becoming more flexible and there is evidence that some banks are willing to look at self-employed borrowers. It all depends on individual circumstances.

We are even seeing cases in which clients have had assets, such as property, taken into consideration along with regular income, after direct negotiation with Volksbank.


Volksbank's mortgage offer - House Acquisition Loans for Foreigners - also reduces the need for proof of income from 12 months, which is the usual period in the Romanian mortgage market, to just three months. This is a big plus for borrowers.


Volksbank is also offerering a Euro product, at a 5.95% interest rate with an LTV of 85% over a 30 year term.

Again, proof of income is required for just three months, instead of the usual 12.

Download Volksbank Mortgage Offer - Swiss Francs »
Download Volksbank Mortgage Offer - Euro »