On a foreign-currency loan such as euro, payments are capped at 20% of net income. In lei: 40%.
Per the BNR: up to 85% in lei, 80% in euro with euro income, and 75% in euro without euro income.
From 1 October 2026 IRCC is 5.57%. Six-month EURIBOR: about 3.07% on 30 September.
On a €200,000 loan over 25 years: about €3,375 net in lei, and about €5,890 on a euro loan.
If you earn in shekels or dollars, both a lei and a euro loan are foreign-currency debt. The payment moves.
Euro or lei mortgage: the short answer
For a buyer whose income is in neither euro nor lei, a lei mortgage is usually the more accessible route in Romania. Under the rules of the National Bank of Romania (BNR), payments on a lei loan can reach 40% of net income, but on a foreign-currency loan such as euro only 20%. The euro rate is lower, but on the same income the bank will approve a much smaller amount.
"Why pay 6.5% in lei when euro looks cheaper?" I hear this in almost every financing conversation. It is a good question, and the answer starts not with the rate but with one question: what currency do you earn in?
The central bank rule: the loan currency sets the caps
BNR Regulation 17/2012 sets different caps for lei loans and foreign-currency loans. For the loan-to-value, it also distinguishes between a borrower with euro income and one without, such as an investor paid in shekels or dollars.
| Route | Maximum loan-to-value (LTV) | Payment-to-income cap (DSTI) |
|---|---|---|
| Lei loan | 85% | 40% (45% for a first home) |
| Euro, borrower with euro income | 80% | 20% |
| Euro, borrower without euro income | 75% | 20% |
These are regulatory ceilings. In practice, for non-residents with foreign income, banks usually finance 50%–70%, as we detailed in our Romanian mortgage guide.
What it means: on the same income, a euro loan will be approved for a much smaller amount than a lei loan.
The indices: IRCC in lei, EURIBOR in euro
On both routes, a variable rate is an index plus the bank's margin.
- Lei: the index for consumer loans is IRCC, published quarterly by the BNR. From 1 October 2026: 5.57%.
- Euro: the index is EURIBOR, administered by the European Money Markets Institute (EMMI). Six-month EURIBOR was fixed at about 3.07% on 30 September 2026.
The gap of roughly 2.5 percentage points reflects the gap between Romanian rates (the BNR policy rate is 6.50%) and the euro area, shaped by the European Central Bank. We explain the indices in depth in our article on IRCC and ROBOR.
Example: same income, two loans
Assume a €200,000 loan over 25 years, and a borrower earning in a currency other than euro or lei. (Rates are for illustration only.)
| Lei loan | Euro loan | |
|---|---|---|
| Example rate | 6.5% | about 5.07% (EURIBOR plus 2%) |
| Monthly payment | about €1,350 (in lei) | about €1,178 |
| DSTI cap | 40% | 20% |
| Net income required | about €3,375 | about €5,890 |
The euro payment is about €170 a month lower. But to get it, the same borrower needs about 75% more income. So if your income does not stretch to the euro route, you will be approved for a smaller loan and need to bring more equity. The full payment calculation is in our article on mortgage payment calculation in Romania.
Currency risk: if you earn in another currency, both loans are foreign
This is the point that is easiest to miss. For an investor earning in shekels, dollars or pounds, both a lei loan and a euro loan are foreign-currency loans. The payment rises or falls in your home currency with the exchange rate, on either route.
The right question is which route gives me the loan I need, at a payment I can carry, at any exchange rate.
The difference is which currency pair you are exposed to:
- Euro loan: exposure to the euro against your income currency.
- Lei loan: exposure to the leu, which also moves against the euro. According to the BNR, on 30 September 2026 one euro was worth about 5.28 lei.
Romania knows this risk well. Borrowers who took Swiss franc loans before 2008 saw their payments rise when the franc strengthened. That does not mean it will happen again, but it explains why banks and the regulator are careful with foreign-currency lending.
What happens to a lei loan when Romania adopts the euro
Romania's official target is 2029, but it has been postponed before, and Romania has not yet joined ERM II. We set out the scenarios in our article on Romania and the euro.
If and when it happens, lei loans would be converted to euro at the conversion rate that is set. Ask the bank now how it intends to handle the conversion, and get the answer in writing. There is no point choosing a route purely as a bet on the accession date.
How to decide: four questions for the banker
- Which LTV and DSTI caps apply to me in each currency, given my income?
- What is the monthly payment on each route, including insurance, and what is the DAE?
- What happens after the fixed-rate period, and which index applies then?
- What are the terms for early repayment and for switching currency?
And if your equity comes from abroad, plan the transfer as well. We cover that in our article on transferring money to Romania.
Frequently asked questions
Can I get a euro mortgage in Romania at all?
Yes, Romanian banks offer euro loans. But BNR rules cap payments on foreign-currency loans at 20% of net income, and for borrowers without euro income they also cap financing at 75%, so the approved amount is much smaller.
Why are lei rates higher than euro rates?
Because Romania's base rates are higher than the euro area's. The BNR policy rate is 6.50% and IRCC is 5.57%, against six-month EURIBOR of about 3.07% at the end of September 2026.
I earn in shekels. Which loan is less risky for me?
Both expose you to the exchange rate against your income currency. The choice depends on what you can repay, the loan size you will be approved for, and the bank's terms. It is a decision to make with a financial adviser who knows your situation.
What happens to a lei loan the day Romania adopts the euro?
It would be expected to convert to euro at the official conversion rate. The adoption date is uncertain, so check the bank's policy in advance and get it in writing.
How much income do I need for a €200,000 mortgage?
In the 25-year example: about €3,375 net a month on a lei loan at 6.5%, and about €5,890 on a euro loan. Assuming no other loans.
The bottom line
The lower euro rate looks tempting, but in Romania the central bank rule decides: on a foreign-currency loan, the bank will approve less on the same income.
The right question is not "where is the rate lower", but "which route gives me the loan I need, at a payment I can carry, at any exchange rate".
If you are weighing the two routes, book a 30-minute call with me. We will go through the numbers in both currencies.
Moti Azulay, Compass Group Romania
Sources and data: National Bank of Romania (BNR) (IRCC, policy rate, exchange rate) · BNR Regulation 17/2012, Romanian legislation portal (LTV and DSTI) · EMMI, EURIBOR administrator · European Central Bank (ECB) · Investropa (January 2026). The calculations in this article are illustrations.
This article is general information only and is not legal, tax or financial advice. Rates and terms are as of October 2026 and are set by each bank according to the borrower's profile. Before any transaction, consult local professionals.
Now you know more.
This article is general information, not legal, tax or financial advice. Consult local professionals before any transaction.
