In brief
A real estate transaction without equity does not exist: there are transactions in which someone else lends you the equity. A Romanian bank finances only part of the property's value under Regulation 17/2012 of the central bank, so "no equity" almost always means an additional loan from a bank in Israel, from the developer or from a private lender. Check who the lender is, what the interest rate and the security are, what the combined repayment is and what happens if the mortgage is not approved on the day of delivery.
Key takeaways
- 1Under BNR Regulation 17/2012, a housing loan reaches up to 85% of the value in lei and 75% to 80% in euros; the balance always comes from another source.
- 2"No equity" does not reduce the price but adds a loan; in an illustrative example the monthly repayment rises by approximately 44%.
- 3An any-purpose loan in Israel secured on an apartment is limited under the relief granted by the Supervisor of Banks, and the home in Israel is the security.
- 4The sensitive point is the day of delivery: if the Romanian bank refuses or approves less, a source is needed for the balance.
- 5A private lender that lends as a business must be licensed; ask for its full name and licence number and check them.
Is it really possible to buy property in Romania without equity?
Not in the literal sense. A Romanian bank finances only part of the property's value, and the missing part comes from an additional loan that you repay. The real question is who lends the "equity", on what terms and what the security is.
Such offers reach the Israeli market in varying wording. There is no reason to reject them out of hand, but you need to see the two loans together, on one page, before talking about the property itself.
"No equity" does not reduce the price but adds a loan; in an illustrative example the monthly repayment rises by approximately 44%.
How much does a Romanian bank finance, and why not all of it?
Regulation 17/2012 of the National Bank of Romania (BNR) sets financing caps for housing loans: up to 85% for a loan in lei, and 75% to 80% for a loan in euros, depending on the currency of income. A cap is not a commitment. The actual amount is derived from your income, the valuation and the bank's policy.
So when "full financing" is offered, the difference between what the bank provides and the price comes from somewhere else, and that is the part that must be checked.
Where does the financed "equity" come from?
| Structure | Who lends | What to check |
|---|---|---|
| Any-purpose loan in Israel | An Israeli bank, secured on your apartment in Israel | The financing ratio, the interest rate, and the fact that the home in Israel is the security |
| Deferred payment to the developer | The developer | When ownership is registered in your name and what happens if a payment is late |
| Loan from a private lender | A credit company or an investor group | Licence, interest rate, indexation, security and penalties |
| Bridging loan until the mortgage | A bank or a private lender | What happens if the mortgage is not approved |
- Mortgaging the apartment in Israel. The Supervisor of Banks permitted, initially as a temporary provision from the war period and subsequently as a permanent arrangement, an any-purpose loan of up to 70% of the value of a mortgaged apartment, with the component above 50% limited to ILS 200,000. Alongside this, new rules on the ratio between repayment and income came into force on 1.10.2026, so the bank will assess you according to the rules applicable on the day the application is submitted. The advantage is a relatively favourable interest rate; the disadvantage is that the apartment you live in serves as collateral.
- Credit from the developer. Even when no interest has been set, this is a debt. The decisive question is when you will be registered as owners: if only at the end of the instalment period, you will pay for years for a property registered in someone else's name.
- Non-bank lender. In Israel, anyone who extends credit as a business requires a licence from the Capital Market Authority under the Supervision of Financial Services (Regulated Financial Services) Law, 5776-2016. In Romania, non-bank financial institutions (IFN) appear in the central bank's registers.
How much does it actually cost to combine the two loans?
The following illustration is based on simplified assumptions, for a property priced at EUR 300,000:
| Component | Amount | Interest and term assumption | Approximate monthly repayment |
|---|---|---|---|
| Romanian mortgage of 70%, subject to bank approval | EUR 210,000 | 6.5%, 30 years | Approximately EUR 1,327 |
| Loan for the "equity", 30% | EUR 90,000 | 4.75%, 20 years | Approximately EUR 582 (paid in shekels) |
| Total | EUR 300,000 | Approximately EUR 1,909 per month |
The Romanian interest rate in the example is close to the BNR policy rate, 6.50%, and to the IRCC index, which stands at 5.57% in the fourth quarter of 2026. The Israeli interest rate in the example is the prime rate, 4.75%, after the Bank of Israel lowered the interest rate to 3.25% in September 2026. The rate you actually receive depends on you and on the lender, and the difference between the currency of income and the currency of repayment adds a layer of risk.
What happens on the day of delivery if the mortgage is not approved?
This is the most sensitive point. In an off-plan purchase, the Romanian mortgage is usually granted when the property is finished, and until then the financed "equity" has already been paid to the developer. At this stage there are three scenarios:
- The bank approves and you start paying two loans.
- The bank approves less, for example because the valuation is lower than the price, and the difference must be made up.
- The bank refuses because of a change in income, interest rates or policy. Then the questions arise of who finances the balance, whether there is a right of cancellation and what will become of the money paid.
Ask for a written answer to each of the three scenarios. A serious offer can answer all of them.
Which questions should be asked before signing?
- Identity of the lender: the full name of the entity financing the missing part, and a licence number that can be verified.
- Terms of the additional loan: rate, fixed or variable track, and the indexation basis.
- The security: a mortgage on the property in Romania, on the apartment in Israel, or your personal guarantee.
- The combined repayment: a total monthly amount for both loans, and its breakdown by currency.
- Status of the Romanian approval: whether there is an approval in principle from the bank, and which documents were submitted to it.
- The refusal scenario: what the contract provides if, on delivery, the bank rejects the application or approves a lower amount.
- Destination of the payments: when buying from a developer, Law 207/2025 (the "Nordis law"), whose rules have been incorporated since 25.8.2026 into article 422(6) to 422(11) of the Planning and Construction Code (Law 169/2026), requires the money to be deposited in the project's dedicated account.
And another question worth asking yourselves: would you buy this property with ordinary equity as well? If the answer is no, it may be the financing that is selling you the property.
Who might such a route suit?
It may suit someone with a stable income sufficient for both loans, an apartment in Israel with available equity and a clear plan in case the mortgage is not approved. It is less suitable for someone whose income barely covers the repayment, someone for whom the home in Israel is their only asset, or someone counting on everything working out on delivery. An Israeli loan is also recorded in the credit data register and affects the ability to borrow in Israel.
What to do before signing and how we assist
Before committing, it is advisable to gather the terms of both loans, request an approval in principle from the Romanian bank and obtain written answers to the three delivery scenarios. We review the purchase contract and the financing documents together, check the identity of the lender and the security and mark the gaps. The signing of the sale contract and the mortgage in Romania takes place before a notary holding a local licence, with the assistance of a Romanian lawyer.
What is stated here is general information as of October 2026 and is not legal or financial advice. The interest rates in the example are for illustration only, and every loan is subject to the lender's approval and to your personal circumstances.
Frequently asked questions
Is it really possible to buy property in Romania without equity?
Not in the literal sense. A Romanian bank finances only part of the value under BNR caps, and "no equity" means that the missing part comes from an additional loan, from a bank in Israel, from the developer or from a private lender, and you repay both.
How much can be borrowed on an any-purpose loan in Israel?
Under the relief granted by the Supervisor of Banks, up to 70% of the value of the mortgaged apartment, provided that the part above 50% does not exceed ILS 200,000. The bank also examines repayment capacity, and the apartment in Israel serves as security.
What is the greatest risk on such a route?
The gap between signing and delivery. If at the end of construction the Romanian bank does not approve the mortgage or approves less, the balance must be made up. What happens in this scenario should be checked in advance, in writing.
How do I check that an entity lending me money operates lawfully?
In Israel, a person extending credit as a business needs a licence from the Capital Market Authority. In Romania, non-bank financial entities are listed in the central bank's registers. Ask for the full name and licence number.
Does "no equity" change the price of the property?
No. The price remains, and the financing cost of the part you borrowed is added. Compare the total cost, price plus interest, with an offer without additional financing.
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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.