What financial possibilities exist to buy a property in Romania?
Further to well known possibilities such as re-mortgaging foreign properties or equity release on the primary residence in a foreign country, due to the continuous growth of the mortgage loan market and the advantages of loan refinancing through bond issuances, a new legal framework will likely be introduced in order to allow mortgage loan and issuances to be conducted in a transparent and effective manner. Thus, a 3-law package is soon to be adopted by the Romanian Parliament: the mortgage bonds law, the securitization law and the law on mortgage banks. The package of laws would allow banks to raise funds for mortgage financings by selling mortgage loans to special purpose vehicles that would, in turn, issue mortgage bonds to the public.
