A Romanian bank finances foreign buyers up to 70% of the property's value, secured on the property itself. Equity is at least 30%.
On a foreign currency loan in the EU, the lender must warn you when the balance or the instalments move by more than 20% because of the exchange rate.
Which property are you willing to pledge, and in which currency do you want the debt? The answers decide the route more than the rate does.
Financing from abroad: the short answer
If you live outside Romania and buy property there, you usually choose between two routes. Route one: a loan from a bank in your own country, secured on property you own there. Route two: a mortgage from a Romanian bank, secured on the property you are buying in Romania. You can also combine them, or buy entirely with your own funds.
A Romanian bank finances foreign buyers up to 70% of the property's value. In other words, your equity is at least 30%. With a loan at home, the rules, the rate and the limits depend on your country and your bank.
Put simply: before asking "where is the rate lower", ask two questions: which property are you willing to pledge, and in which currency do you want the debt?
Our detailed comparison for Israeli buyers is in financing in Israel or in Romania. Here we widen the picture to five countries and focus on what they all share: the collateral and the currency.
The two routes side by side
| A loan in your own country | A Romanian bank mortgage | |
|---|---|---|
| Collateral | Property you own at home, or an unsecured loan | The property you are buying in Romania |
| How much | Set by your country's rules and the value of the property there | Up to 70% of the Romanian property's value |
| Currency of the debt | Usually the currency of your income | Lei or euro, depending on the offer |
| Income check | Under your bank's and regulator's rules | The Romanian bank assesses your foreign income under the National Bank of Romania (BNR) rules |
| What is at risk | Your property at home | The property in Romania |
| Documents | Your bank's usual file | Translated income documents, a Romanian tax number and a Romanian bank account |
The full process with a Romanian bank is in our mortgage guide.
Currency: the risk a simulation does not show
A Romanian property is usually priced in euro. A Romanian loan can be in lei or in euro. And your income is in shekels, pounds, dirhams or euro. Every gap between the currency of your income and the currency of your debt is a risk.
What EU rules say. The EU Mortgage Credit Directive (2014/17/EU) defines a "foreign currency loan" as one in a currency other than the one in which you receive income or hold the assets you will repay from, or other than the currency of the member state where you live (Art. 4). For such loans, member states must ensure one of two things: a right to convert the loan into another currency, or other arrangements that limit the risk. The lender must also warn you regularly if the balance or the instalments move by more than 20% because of the exchange rate (Art. 23).
A simple example. A loan of €200,000. If the euro strengthens by 10% against your currency, every monthly payment, counted in your currency, rises by 10%. That is arithmetic, not a forecast. The difference between a lei and a euro mortgage is explained in euro or lei.
Before asking where the rate is lower, ask which property you are willing to pledge and in which currency you want the debt.
By country: general points we verified
| Country | Income currency | The home-country route | What we checked in an official source | Currency against a Romanian loan |
|---|---|---|---|---|
| Israel | Shekel | An all-purpose loan secured on a home in Israel | The Bank of Israel caps an all-purpose loan at a share of the pledged home's value. Details in financing in Israel or in Romania | Both a lei and a euro loan differ from your income currency |
| Germany | Euro | A loan from a German bank, for example secured by a charge on German property | A consumer loan secured by a charge on land is a "consumer real estate loan" under the German Civil Code (BGB, §491(3)). For such a loan in a foreign currency there is a right to convert (§503) | A euro loan: no currency gap. A lei loan: foreign currency |
| France | Euro | A housing loan from a French bank | According to the French government's reply to the National Assembly, the HCSF decision caps the debt-service ratio at 35% of income and the term at 25 years, with a 20% flexibility margin | As for Germany |
| United Kingdom | Pound | A loan secured on a UK home | We did not check a specific rule. Ask your lender whether the money may be used for a purchase abroad | Both a lei and a euro loan differ from your income currency |
| United Arab Emirates | Dirham | A loan from a UAE bank | The dirham is pegged to the US dollar. The central bank's reference rate is AED 3.6725 per dollar | The real risk is the euro against the dollar |
Two clarifications. First, the table does not mean your bank will finance a Romanian purchase. That depends on the bank and the loan's purpose, so ask in advance. Second, the French limits are described from a published official reply and may have been updated since. Check with the bank what applies on the day you apply.
What about Islamic financing?
Buyers from the Gulf and from Muslim communities in Europe ask whether they can finance without interest. We did not find a Romanian bank currently publishing a Sharia-compliant home finance product, so we do not recommend one. If this matters to you, there are two practical routes: financing from an Islamic bank in your own country, if it offers a facility suited to this purpose, or buying with your own funds. Ask the bank in writing before you commit to a deal.
Combining the routes
When buying off-plan, construction instalments fall due before the property is finished. In many cases the Romanian mortgage comes only once the finished property can be mortgaged, so some buyers fund the instalments during construction from equity or a loan at home, and take a Romanian mortgage at handover. Check this structure with both banks in advance. Payments until handover are covered in where is my money until handover.
Checklist: 7 steps before you choose
- Decide what you are willing to pledge: your home, or only the Romanian property.
- Compare your income currency with the debt currency. Work out what happens to the payment if the exchange rate moves by 10% and by 20%.
- Get a written offer from the Romanian bank: the financing percentage (up to 70% for foreign buyers), currency, rate and documents.
- Ask your bank at home whether the loan may fund a purchase abroad, and which documents it needs.
- Prepare the source-of-funds file for your equity of at least 30%. See our source-of-funds guide.
- Align the timing: when each payment is due, and when each bank releases money.
- Talk to a mortgage adviser and a tax adviser in your country, and to an independent lawyer in Romania.
Frequently asked questions
How much will a Romanian bank lend to a foreign buyer?
Up to 70% of the property's value, so your equity is at least 30%. The final amount also depends on your income and the bank's assessment.
Can a bank in my country take a mortgage on the Romanian property?
Most banks at home will prefer collateral at home, such as a flat or a house. If you want the Romanian property to be the collateral, the usual route is a mortgage from a Romanian bank.
I earn in euro. Is a lei mortgage a foreign currency loan?
Under the definition in the EU Mortgage Credit Directive 2014/17/EU, yes: it is a loan in a currency other than the one you earn in. Such a loan comes with conversion or risk-limiting rights, and warnings from the lender when the rate moves by more than 20%.
Is there a Romanian bank that offers Islamic financing?
We did not find a Romanian bank currently publishing such a home finance product. Check with your bank at home whether it offers a facility suited to a purchase abroad, and ask in writing.
Can I fund the construction instalments and the balance in different ways?
Yes. Many buyers pay during construction from equity or a loan at home, and take a Romanian mortgage at handover. Agree it with both banks in advance.
The bottom line
Financing from abroad is not only a question of rate. It is a question of collateral and currency. A Romanian bank will lend up to 70% on the property itself, and your bank at home will lend under its own rules and collateral. Before you choose, work out the payment in a scenario where the currency moves against you.
For example, on a villa at Compass on the Lake in Balotești, priced from €299,900 including 21% VAT, notary and lawyer, equity of at least 30% is about €90,000, if the bank values the property at that price.
If you are weighing finance for a Romanian purchase, with us or anywhere else, book a 30-minute call with me. We will prepare the questions for the Romanian bank, your own bank and your adviser together.
Moti Azulay, Compass Group Romania
Sources: Directive 2014/17/EU on credit agreements relating to residential immovable property (EUR-Lex), Arts. 3, 4, 23 · German Civil Code (BGB), §491 and §503 · French National Assembly: government reply on the HCSF decision · Central Bank of the UAE: dirham reference rate and annual report on the dollar peg
This article is general information only and is not legal, tax or financial advice. The rules are current as of 22 October 2026. Financing terms are set by each bank according to your profile. Before any transaction, consult a mortgage adviser, a tax adviser and an independent lawyer.
Now you know more.
This article is general information, not legal, tax or financial advice. Consult local professionals before any transaction.
