As a keen investor in Romania I keep a close eye on Mortgage products which are hitting the market and this requires a lot of attention since the market is very dynamic.

Through some contacts in Brasov, Romania I have found a mortgage product based on 75% LTV and for 25 years. The product is in CHF and the interest rate 3.99% per annum for new acquisitions. The downside is 2% penalty on early repayment.

Whilst the banks over hear are making it more difficult to get credit (note the announcement by HSBC), It seems Romania is actively developing new products in a bid to get more business volume.

the other downside is the monthly administration comission Volksbank is charging on the remaining balance (up to 0,30% per month in case the LTV is 100%)

Interest-rate as published: 3,99%
But the real APR in CHF for a 75% LTV on 25 years is 7.89 %

The interest rate is not fixed as they say, as a clauze in the contract allows them to change the interest whenever 'a significant' change takes place on the international capital market.

With other words the interest rate is in principle variable and subject to change at any moment (as was done with clients who signed in 2007 and saw their interest rate change within 6 months after signing)


Stefan