In brief
The monthly payment on a mortgage in Romania is derived from the loan amount, the annual interest rate and the number of years. A loan of EUR 200,000 at 6.5% over 25 years requires a payment of about EUR 1,350 a month, before insurance and fees. The bank will approve it only if your total repayments do not exceed 40% of net income on a lei loan, under the rules of the National Bank of Romania.
Key takeaways
- 1A loan of EUR 200,000 at 6.5% over 25 years: about EUR 1,350 a month in principal and interest.
- 2Each percentage point of interest is worth about EUR 120-130 a month on such a loan.
- 3Extending from 25 to 30 years at 6.5% reduces the payment by about EUR 86 a month, and adds about EUR 50,000 to the total interest.
- 4Under BNR Regulation 17/2012, repayments on all loans are capped at 40% of net income on a lei loan and 20% on a foreign currency loan.
- 5Compare offers by DAE, the effective annual interest rate, and not by the headline rate.
When investors from Israel look into financing in Romania, the first question is usually “what is the interest rate?”. The more useful question is how much you will pay each month, and how much income the bank will require to approve it. This guide gives you the tools to calculate this yourself, even before you approach a bank. The calculations are for illustration only, and the figures are correct as of October 2026.
What determines the amount of the monthly payment?
Three figures: the loan amount, the annual interest rate and the number of years. Everything else, such as insurance and fees, is added on top. The payment itself is also the figure the bank checks against your income, so it is what ultimately determines how much you can borrow.
Each percentage point of interest is worth about EUR 120-130 a month on such a loan.
How do you calculate the payment yourself?
Most housing loans in Romania are structured as a schedule of equal payments, which Romanians call rate egale and Israelis know as Spitzer. These are the components of the calculation:
| Component | Meaning | In our example |
|---|---|---|
| The formula | Payment = P × r ÷ (1 − (1 + r)^−n) | |
| P | The loan principal | EUR 200,000 |
| r | Monthly interest rate: the annual rate divided by 12 | 0.065 ÷ 12 = 0.00542 |
| n | Number of payments | 300, that is, 25 years |
Anyone who prefers not to calculate manually can use the PMT function in any spreadsheet program. It returns the same figure, which covers principal and interest and nothing else.
How much is paid each month on a loan of EUR 200,000?
The figures in the table come from the same formula. Those borrowing in lei will see them in lei: at the rate published by the BNR for 30 September 2026, about 5.28 lei to the euro, such a loan is worth about 1,056,000 lei.
| Annual interest rate | 25 years | 30 years |
|---|---|---|
| 5.5% | About EUR 1,228 | About EUR 1,136 |
| 6.5% | About EUR 1,350 | About EUR 1,264 |
| 7.5% | About EUR 1,478 | About EUR 1,398 |
What does the table teach us? First, one percentage point of interest moves the payment by about EUR 120-130 a month. Second, five additional years do not save much: at 6.5% the monthly payment falls by only about EUR 86, while the cumulative interest over the life of the loan climbs from about EUR 205,000 to about EUR 255,000.
Equal payments or equal principal: what is the difference in practice?
There is also another option, rate descrescătoare: each month you repay the same portion of the principal, interest is charged only on what remains, and the payment keeps decreasing. The comparison on the same figures, EUR 200,000 at 6.5% over 25 years:
| Equal payments (rate egale) | Equal principal (rate descrescătoare) | |
|---|---|---|
| First payment | About EUR 1,350 | About EUR 1,750 |
| Last payment | About EUR 1,350 | About EUR 670 |
| Total interest | About EUR 205,000 | About EUR 163,000 |
The disadvantage: in the first years the payment is heavier, and it is precisely this payment that the bank will test against income. The advantage: over the whole term, less money goes on interest.
How is the variable rate set, and what is IRCC?
When the loan is in lei and the rate is not fixed, it consists of two parts: a public index and a margin (marjă) that the bank adds. Since 2019 the index for consumer loans has been IRCC (the consumer credit interest rate index), and the BNR updates it once a quarter. The value in force from 1 October 2026: 5.57%.
Example: with a margin of 2%, the rate reaches 7.57%, and the monthly payment on EUR 200,000 over 25 years approaches EUR 1,487. In common products the rate is fixed for the first three to five years, and then moves to the index plus a margin. Ask the bank for a simulation for both periods, not only for the fixed period.
What else enters the monthly cost beyond principal and interest?
| Component | What it is | Source of the requirement |
|---|---|---|
| PAD | Mandatory home insurance | Law 260/2008 |
| Building insurance | A policy in which the bank is named as beneficiary | Bank requirement |
| Life insurance | Sometimes required, or affects the rate you will receive | Bank policy |
| Fees | Account or loan administration fees | The bank's fee schedule |
| Currency risk | Gap between income in shekels and repayment in lei or euro | Your income structure |
So do not compare offers by the nominal rate. Compare by DAE (dobânda anuală efectivă), the total annual cost rate, which the bank is required to present and which also reflects these additions.
How much income will the bank require to approve the loan?
The rule is set in BNR Regulation 17/2012: all your monthly repayments together, on all loans, may not exceed 40% of net income when the loan is in lei, or 20% when it is in foreign currency. For the purchase of a first home, an additional 5 percentage points are allowed. Banks call this ratio DSTI (debt service to income).
Translated into figures: to carry a payment of about EUR 1,350 on a lei loan, you will need to show at least about EUR 3,375 net a month. The loan amount is therefore derived from income, not from the value of the property.
Can the mortgage be repaid early?
Yes, and without a penalty. For housing loans, Emergency Ordinance 52/2016 prohibits the bank from charging a fee for early repayment, even when the rate is fixed. Make sure the condition appears in the agreement.
What should be done before approaching the bank?
Calculate the payment even before choosing a property: it shows how much you will pay, how much income will be required, and what will happen if the rate moves by one percentage point. When we accompany a buyer taking financing in Romania, we review the scenarios with the buyer against the banks' offers and the terms of the loan agreement, and the documents under Romanian law are prepared and certified by the bank, a notary and a lawyer authorised to act in Romania.
The content of this article is general information only and does not constitute legal or financial advice. The calculations are for illustration only. Interest rates and terms are set by each bank according to the borrower's profile and are correct as of October 2026. Before any decision, it is recommended to obtain individual advice.
Frequently asked questions
How much does a EUR 200,000 mortgage in Romania cost per month?
At an interest rate of 6.5%: about EUR 1,350 a month over 25 years, or about EUR 1,264 over 30 years, before insurance and fees. On a lei loan the payment is made in lei.
What is the difference between rate egale and rate descrescătoare?
With rate egale the payment is fixed throughout the term, like a Spitzer schedule. With rate descrescătoare the principal is fixed and the payment decreases over time; it starts higher but saves interest overall.
What is DAE?
DAE is the effective annual interest rate, which includes the costs of the loan beyond the nominal rate. It is the right figure for comparing offers from different banks.
How much income is needed for a mortgage in Romania?
Under BNR Regulation 17/2012, total repayments are capped at 40% of net income on a lei loan and 20% in foreign currency. A payment of about EUR 1,350 requires net income of at least about EUR 3,375 a month on a lei loan.
Is there an early repayment fee on a mortgage in Romania?
On a housing loan, under Emergency Ordinance 52/2016, the bank may not charge an early repayment fee, even at a fixed rate.
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The information in this guide is general in nature and does not constitute legal or tax advice on any specific transaction. Every transaction is assessed on its own facts.