That is the translation of the current crediting program financed by our government and executed by a few selected banks in our country. Since I got fired up by the offer I saw (see previous post), I did a research on the offers the banks had. The offers have some difference, so I did a preliminary research on them using only data published on their websites. I have selected three banks:
- BT – Banca Transilvania – the regional bank (headquarters in Cluj), not yet bought by any major bank
- BRD – Banca Romana de Dezvoltare – the second largest bank, owned by Societe Generale
- BCR – Banca Comerciala Romana – the biggest bank in the country, owned by Erste Bank
I took as target credit the value of the flat I liked (without the garage): €42.000, and a crediting period of 240 months (20 years).
The first bank I examined, was BT, the preferred bank, because it is the regions bank and because I like them in general 🙂 . They offer only one, basic crediting mechanism, with a flat paying rate of €257.91/month. This value is however composed of the credit+interest which varies along the 240 months:
| Month # | Rate | Interest | Fees | Total |
| Month 001 | €99.87 | €158.04 | 0 | €257.91 |
| Month 240 | €256.89 | €1.02 | 0 | €257.91 |
Although I have written 0 to the Charges section, there are occasional charges to be payed at certain periods. These are handling fees by the bank, which occur only occasionally.
There are also initial payments that have to be done when applying for the credit. According to the bank’s website, these are the numbers:
| Advance | €2100 | 5% of the credit |
| Credit fee | 0 | it says “gratuit” |
| Guarantee | €472.92 | 3 rates of the interest |
| Evaluation | 0 | Done by BT evaluator |
| Total | €2572.92 | – estimation |
Next I examined BRD. This bank seems to offer two methods of paying the rates: it offers an almost flat payment rate with the following characteristics:
| Month # | Rate | Interest | Fees | Total |
| Month 001 | €119.36 | €105.24 | €39.9 | €262.49 |
| Month 240 | €224 | €0.59 | €0.22 | €224.82 |
and another type, the decreasing payment rate, with the following characteristics:
| Month # | Rate | Interest | Fees | Total |
| Month 001 | €166.25 | €158.04 | €39.9 | €311.39 |
| Month 240 | €166.25 | €0.44 | €0.17 | €166.85 |
The advantage of this second type of payment rate is of course the fact, that the rates are actually being payed at the flat rate… in other words this is the actual flat rate payment. It could represent a huge advantage when trying to pay the rest of the credit instantly in the future.
Here is the list of down-payments that have to be done when applying for the credit:
| Advance | €2100 | 5% of the credit |
| Credit fee | 0 | it says “gratuit” |
| Guarantee | €314.77 | 3 rates of the interest |
| Evaluation | €100 | Approximation. By preferred evaluator. |
| Total | €2514.77 | – estimation |
Unfortunately BCR does not offer any calculator to calculate the rates for this type of credit. For this reason I do not know what the rates are. I was able to gather some information about the down-payments:
| Advance | €2100 | 5% of the credit |
| Credit fee | €79.8 | 0.2% |
| Guarantee | €400 | Approximation. 3 rates. |
| Evaluation | €83 | 300RON + Taxes |
| Total | €2661 | – very rough estimation |
The research shows, that in order to have this type of credit the down-payment is really low. However it must be taken into consideration, that additional charges may be asked by the real-estate agency (see my previous post) and take into account that you might need some money for furniture also. The rates themselves are OK, but can be changed and I think they will be changed during the crediting period. For this reason I like the 2nd offer of BRD, where you actually pay linearly the credit, so after 10 years, there will be actually 50% payed of the credit and the rest is easier to be payed…
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