From 1 October 2026: 5.57%, the first rise after four falls and below the 2025 peak of 6.06%. The estimate for January 2027: about 5.59%.
At ING the margin after the fixed period is IRCC + 2.49%, compared with IRCC + 1.55% on the fully variable track.
On a million lei over 25 years, a fixed 5.29% saves about 1,130 lei a month in the first five years against a variable 7.12%.
Under Ordinance 52/2016, the margin on a variable rate is fixed for the whole term, and Article 16 prohibits raising it during the contract.
In the million lei example, a one-point rise in IRCC lifts the variable instalment from about 7,145 to about 7,800 lei.
Fixed or variable rate in Romania: the short answer
In Romania, a "fixed rate" on a mortgage is almost always fixed only for the first three, five or ten years, and then moves to variable: the IRCC index plus a fixed margin. In October 2026 the initial fixed rate is lower than the variable rate, but the margin after the fixed period is higher. So the right comparison is not the rate in the first year, but the cost over the whole loan, and what you will do on the day the fixed period ends. Correct as of October 2026.
"Fixed is safe, variable is a gamble". That is how most Israelis think about a mortgage, and rightly so, because that is what we learned at home. In Romania the logic is a little different. When I showed investors the 25-year calculation, most of them were surprised by where the real price comes from.
How a variable rate works in Romania
A variable-rate housing loan in lei has two parts: the IRCC index, updated every quarter, and the bank's margin (marjă). Under Article 38 of Emergency Ordinance 52/2016, the margin is fixed for the whole term of the loan, and Article 16 prohibits the bank from raising it later.
In other words, only the index moves. According to Economedia, from 1 October 2026 the IRCC stands at 5.57%, the first rise after four quarterly falls, and still below the 2025 peak of 6.06%. Estimates for January 2027 point to about 5.59%. The index is calculated from data for an earlier quarter, so it responds with a lag of about six months. The full explanation is in the article on IRCC and ROBOR.
How a "fixed rate" works in Romania
In the Romanian market the common structure is a mixed track: a fixed rate for an initial period, then IRCC plus a margin. This is what it looks like at three large banks, according to what they published in October 2026:
| Bank and product | Fixed period and rate | After the fixed period | Fully variable |
|---|---|---|---|
| ING, ING Ipotecar | 3 years: 4.79%–5.79%. 5 years: 5.29%–6.29% | IRCC + 2.49% (about 8.06%) | IRCC + 1.55% (about 7.12%) |
| BCR, Casa Mea | 3, 5 or 10 years. For three years: 4.99% for customers with their salary at the bank, 6.19% without | IRCC + 2.30% with salary, IRCC + 3.50% without | Not published on the product page |
| Raiffeisen, Casa Ta Verde | 3 years: from 4.70%. 5 years: from 5.45% | IRCC + 1.90% | Not published on the product page |
The lower rates in the table usually depend on moving your salary, life insurance or a minimum income.
Note the figure in the third column: at ING, the margin after the fixed period is almost one percentage point higher than the margin on the fully variable track. That is the price of peace of mind in the early years.
The 25-year calculation: where the price hides
Assume a loan of 1,000,000 lei over 25 years, on ING's terms. A key assumption: IRCC stays at 5.57% throughout.
| Track | Instalment in years 1–5 | Instalment in years 6–25 | Total over 25 years |
|---|---|---|---|
| Fully variable, 7.12% | about 7,145 lei | about 7,145 lei | about 2,143,000 lei |
| Fixed 5 years at 5.29%, then 8.06% | about 6,016 lei | about 7,476 lei | about 2,155,000 lei |
| Fixed 5 years, then refinance at 7.12% | about 6,016 lei | about 6,963 lei | about 2,032,000 lei |
Our calculation, for illustration, before insurance and fees, with equal instalments.
What you see here:
Note the figure in the third column: at ING, the margin after the fixed period is almost one percentage point higher than the margin on the fully variable track.
- In the first five years the fixed rate saves about 1,130 lei a month, about 67,700 lei in total.
- After that the higher margin claws back most of the gap, and after 25 years the two tracks are almost equal.
- The third line is the interesting one: someone who completes the fixed period and moves to a cheaper loan gets both advantages.
The third line is possible because in Romania you may repay a housing mortgage early without a penalty, even at a fixed rate. We set this out in the article on early repayment and refinancing. Note: refinancing depends on a bank's approval five years from now, and on the costs of a new loan. It is an option, not a promise.
When a fixed rate suits you
- When the monthly instalment is close to your cap. On a lei loan, BNR Regulation 17/2012 caps repayments at 40% of net income. A lower starting rate can be the difference between approval and refusal.
- When you want peace of mind in the early years. For example in a year of moving home, furnishing costs or an income that is still settling.
- When you are planning a large repayment or refinancing at the end of the fixed period, and understand that this requires keeping track.
When a variable rate suits you
- When you plan to keep the loan for the long term and do not want to deal with refinancing in five years.
- When you have headroom in your income. If IRCC rises by one percentage point, the instalment in our example rises from about 7,145 to about 7,800 lei. Ask yourself whether that is bearable.
- When you plan to repay quickly. Repayment is free on both tracks, but on the fully variable track you do not pay a high margin for the years after the fixed period.
And the opposite scenario for both sides: if IRCC falls significantly, the variable rate wins. If it rises sharply in the early years, the fixed rate protects you. No one, including me, knows where it will go.
What Israelis need to remember
In Israel, Bank of Israel directives require at least one third of a mortgage to be at a fixed rate, and there are tracks that are fixed for the entire term. Romania has no such requirement, and a rate fixed for all 25 years is hardly ever offered.
Another difference: a mortgage in lei also exposes you to the leu-shekel exchange rate. That is a separate decision from the type of rate. We wrote about it in the article on a mortgage in euros or lei.
When comparing offers, compare the annual percentage rate of charge (DAE), which banks are required to publish, and ask each bank for the expected instalment after the fixed period as well, in writing. How to calculate it yourself, in the article on calculating the monthly repayment.
Frequently asked questions
Is there a mortgage in Romania fixed for the entire term?
Hardly ever. The common product is a rate fixed for three, five or ten years, followed by a variable rate: IRCC plus a margin set in the contract. So any "fixed" offer must also be checked against the terms that apply after the fixed period.
What happens when the fixed-rate period ends?
The loan automatically moves to a variable rate according to the formula in the contract, for example IRCC plus 2.49% at ING. That is the time to look at refinancing offers, because early repayment of a housing mortgage in Romania carries no penalty.
Can the bank raise the margin partway through the loan?
No. Under Emergency Ordinance 52/2016, the margin on a variable-rate loan is fixed for the whole term, and the law prohibits raising it during the contract. What changes is the index, IRCC on new lei loans.
What is IRCC now?
From 1 October 2026 until the end of the year, 5.57%. Estimates for the first quarter of 2027 point to about 5.59%. The index is published by the National Bank of Romania and updated every quarter.
Which is better for a buyer from Israel in 2026?
There is no single answer. If the instalment is close to the cap or you need peace of mind in the early years, a rate fixed for a limited period makes sense, provided you plan what to do at the end of it. If you have headroom in your income and do not want to deal with refinancing, fully variable is simpler.
The bottom line
In Romania, the question is not "fixed or variable", but "what is the margin after the fixed period, and what will I do when it ends". Anyone who looks only at the first year's rate sees half the deal.
If you have received offers from Romanian banks and want to compare them properly, book a 30-minute call with me. We will put the offers side by side, calculate 25 years and build a list of questions for the bank.
Moti Azulay, Compass Group Romania
Sources and data: Emergency Ordinance 52/2016, Romanian legislation portal (Articles 16, 38, 41) · Economedia, IRCC from 1 October 2026 · ING Bank Romania, ING Ipotecar · BCR, Casa Mea · Raiffeisen Bank, Casa Ta Verde · BNR Regulation 17/2012 · National Bank of Romania (BNR) · Bank of Israel.
This article is for general information only and is not legal, tax or financial advice. The rates and margins are as published by the banks in October 2026 and change frequently. The calculations are for illustration only, assuming IRCC does not change. Before deciding, get a written offer and consult a mortgage adviser.
Now you know more.
This article is general information, not legal, tax or financial advice. Consult local professionals before any transaction.
