State guarantee now worth merely 50 euros per month

The monthly payment for a mortgage loan taken through the “First Home” programme will be merely 23% lower than that of a standard such loan, albeit the banks are guaranteed repayment by the state if the client defaults, and therefore are not taking any chances. The average of the best five “First Home” loan offers for a 40,000-euro loan repayable in thirty years stands at 205 euros per month, according to the conso.ro portal data. As far as the best offer of the top five for standard mortgage loans is concerned, the average instalment reaches 253 euros per month, which is merely 23% higher. Last summer, the instalment of a standard loan would be worth up to 300 euros, with banks relaying to clients the high risk premiums they had to pay to those they borrowed money from.

Bankers, however, are not thinking of cutting the prices of state-secured loans sold yet, although they admit current terms on financial markets are much better than they were last summer.