2024-01-25 10:10:00
The government will continue the New Home Program in 2024 as well, this year’s ceiling being 1 billion lei. Beyond the statement of the Ministry of Finance, the substantiation note also states the reasons.
the Ministry of FinancePhoto: Hotnews
Noua Casa 2024 is granted in lei, for the purchase of a single home, and the maximum value of the credit you can access is:
- 66,500 euros – for homes whose price is a maximum of 70,000 euros, the requested advance being 5%;
- 119,000 euros – for homes whose price is a maximum of 140,000 euros, in this case the requested advance is 15%.
The interest is variable, calculated according to the Reference Index for consumer loans (IRCC), to which a fixed margin of approx. 2% is added.
The 3 reasons why the continuation of the Noua Casa Program is needed, according to the Ministry of Finance
We reproduce in full, below, the explanatory note:
1. This segment of potential beneficiaries represented mainly by young and very young people (aged between 18 and 28), who do not have high enough incomes to be able to support a quick process of saving the advance (in the case of mortgage loans standard, the level of the minimum advance required is more than 15% of the value of the home that is purchased through credit) are on their first home purchase and generally encounter greater difficulties in accessing and supporting a mortgage loan.
2. Another argument in support of ensuring the continuity of the “New House” Program is the imminent increase in the purchase price of new homes whose value falls within the limit of 120,000 Eur, from January 1, 2024. given the increase in VAT from 5% to 9% for this housing segment.
3. In addition to the social arguments regarding the continuation of the Program, the general ones drawn from recent studies must also be taken into account, which show that, despite the uncertainty that dominated the European economy in 2022 and 2023, under the conditions of Russia’s aggression once morest Ukraine, EU businesses can be affected in a number of ways, both directly and indirectly.
The consequences may be the interruption of existing contracts and projects, which may result in loss of turnover, disruption of supply chains, particularly of raw and prefabricated materials, or other factors of production that are no longer available, or are no longer affordable from an economic point of view.
As a result, in most cases, the residential market has seen price increases due to the continued increase in construction costs, driven to a significant extent by increases in electricity and gas prices, which has led to lower affordability financing.
Thus, in order to outline an overview of the crediting of the population in Romania, according to the Report on Financial Stability, prepared by the BNR on June 30, 2023, the total indebtedness of the population continued to moderate on the date of the previous Report, namely December 2022, as following the rise of interest rates, but also the tightening of lending standards.
We mention that, in accordance with the conclusions published in the Report “Residential Real Estate Market T III 2023” published on the website: imobiliare.ro, the period 2024-2025 will probably bring lower interest rates, but together with higher housing prices, determined on the one hand, in the first part of the year, the pressure that will come from the VAT increase from 5% to 9% for newly purchased homes whose value is below 120,000 euros, then if the inflation trend is confirmed from a possible relaxation of lending, all this once morest the background of a decreasing supply.
These trends, which are estimated to manifest themselves starting in 2024, are likely to continue to put pressure on the increase in real estate prices, which determines the need for continued State support in the process of purchasing a home by individuals, in order to avoid distortions and failures in securing access to finance.
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