Under BNR Regulation 17/2012: up to 85% on a loan in lei, and 75%-80% in euros. The balance always comes from somewhere else.
In an illustrative example: a €300,000 villa, a 70% mortgage and a 30% loan for the missing part. Together about €1,909 a month.
A Supervisor of Banks relief: up to 70% of the home's value, with the portion above 50% capped at 200,000 shekels. A draft from 12.2025 proposes making it permanent.
The bank approves, approves less or refuses. A good offer answers in writing what happens in each, and who finances the balance.
Who the lender is and their licence, interest and indexation, collateral, combined repayment, approval in principle, the refusal scenario, and which account the money goes into.
A "no down payment" offer: the short answer
There is no property transaction without equity. There are transactions where someone else lends it to you. Under the central bank's rules, a Romanian bank finances only part of the property's value, so "no down payment" almost always means a second loan: from a bank in Israel, from the developer or from a private lender. To check such an offer, you ask who the lender is, what the interest rate and collateral are, what the monthly repayment of both loans together is, and what happens if the mortgage is not approved at handover.
Offers like this reach the Israeli market every few months, worded in different ways. I do not rule them out. I ask to see both loans on one page, before we talk about the villa.
Why the bank does not finance everything
National Bank of Romania (BNR) Regulation 17/2012 sets loan-to-value caps for housing loans: up to 85% on a loan in lei, and 75% to 80% on a loan in euros, depending on the currency of income. And a cap is not a promise: the actual amount follows from your income, the valuation and each bank's policy. How much equity you actually need, we set out in the article on the down payment in Romania.
In other words, if someone offers "100% financing", the gap between what the bank gives and the price comes from somewhere else. The question is where.
Where the "down payment" comes from: 4 common structures
| Structure | Who lends | What to check |
|---|---|---|
| An all-purpose loan in Israel | An Israeli bank, secured on your home in Israel | The loan-to-value, the interest rate, and the fact that your home in Israel is the collateral |
| Deferred payment to the developer | The developer itself | When ownership passes, and what happens if you do not pay on time |
| A loan from a private lender or "club" | A credit company or investors | Licence, interest, indexation, collateral and penalties |
| A bridging loan until the mortgage | A bank or a private lender | What happens if the mortgage is not approved |
An all-purpose loan in Israel. Under a relief granted by the Israeli Supervisor of Banks as a temporary wartime provision, a bank may grant an all-purpose loan secured on a home up to 70% of its value, provided the portion above 50% does not exceed 200,000 shekels. On 16 December 2025 the Supervisor published a draft circular for public comment (in Hebrew) proposing to make the relief permanent, so confirm with the bank what applies on the day you apply. The interest rate is relatively low, but if something goes wrong, your home in Israel is what is at stake. A full comparison is in the article on financing in Israel or in Romania.
Deferred payment to the developer. This is a debt to the developer, even if it carries no "interest". Check when ownership is registered in your name: if only after the last payment, you are paying for years for a property that is not yet yours.
A private lender. In Israel, providing credit as a business requires a licence from the Capital Market Authority under the Supervision of Financial Services (Regulated Financial Services) Law, 2016 (in Hebrew). In Romania, non-bank financial institutions (IFN) are listed in BNR's registers. Ask for the lender's name and check it.
An example: what happens when you combine the two loans
For illustration only, with simplified assumptions: a villa priced at €300,000.
| Component | Amount | Assumption | Approximate monthly repayment |
|---|---|---|---|
| Romanian mortgage, 70% | €210,000 | 6.5%, 30 years | about €1,327 |
| Loan for the "down payment", 30% | €90,000 | 4.75%, 20 years | about €582 (in shekels) |
| Together | €300,000 | about €1,909 a month |
The Romanian rate in the example is close to BNR's policy rate, 6.50%, and to the IRCC index, which stands at 5.57% in the fourth quarter of 2026, according to Economedia. The Israeli rate in the example is the prime rate, 4.75%, after the Bank of Israel cut its rate to 3.25% in September 2026. The rate you actually get depends on you and on the bank.
"No down payment" does not lower the price. It adds a loan, and in this example raises the monthly repayment by about 44%. And that is before the difference between the currency of your income and the currency of the repayment. How to calculate a repayment yourself, in the guide to calculating a mortgage repayment in Romania.
"No down payment" does not lower the price. It adds a loan, and in this example raises the monthly repayment by about 44%.
The most sensitive point: handover day
When buying off-plan, the Romanian mortgage is usually granted when the property is complete. Until then, the financed "down payment" has already been paid to the developer. And then the bank:
- Approves: excellent, and you start paying two loans.
- Approves less: for example because the valuation is below the price. The difference has to be made up. More on this in the article on bank valuations in Romania.
- Refuses: because of a change in income, interest rates or policy. What then? Who finances the balance? Is there a cancellation right, and what happens to what has been paid?
Ask in writing what happens in each of the three scenarios. A good offer answers all of them.
7 questions to ask before signing
- Who is the lender of the "down payment", and what is their licence number?
- What is the interest rate, is it fixed or variable, and what is it indexed to?
- What is the collateral: the property in Romania, the home in Israel or a personal guarantee?
- What is the monthly repayment of both loans together, and in which currencies?
- Has the Romanian mortgage already been approved in principle, and on the basis of which documents?
- What happens if the bank refuses or approves less at handover?
- Which account does the money go into? When buying from a developer, under Law 207/2025, payments go into the project's dedicated account.
And question eight, which you ask yourself: would you buy this property with an ordinary down payment too? If not, it is the financing that is selling it to you.
Who it suits, and who it does not
It may suit people with a stable income high enough for both loans, a home in Israel with available equity, and a clear plan for the scenario in which the mortgage is not approved.
It suits less people whose income barely covers the repayment, people whose home in Israel is their only asset, and people relying on "it'll be fine" at handover. An Israeli loan is also recorded in the Credit Data System and affects your ability to borrow in Israel. On the other side of this, see the article on a Romanian mortgage and your credit in Israel.
I will mention it once: in our project in Balotești, financing of up to 70% from a Romanian bank is available, subject to the bank's approval. The remaining 30%, and the questions above, are worth planning before signing.
Frequently asked questions
Can you really buy property in Romania with no down payment?
Not literally. A Romanian bank finances only part of the value, under BNR's caps. "No down payment" means the missing part comes from an additional loan, from a bank in Israel, from the developer or from a private lender, and you repay both.
How much can you borrow through an all-purpose loan in Israel?
Under a wartime relief from the Supervisor of Banks, up to 70% of the value of the mortgaged home, provided the portion above 50% does not exceed 200,000 shekels. In December 2025 a draft was published to make the relief permanent, so confirm with the bank what applies today. The bank also assesses your ability to repay, and the home in Israel serves as collateral.
What is the biggest risk in such an arrangement?
The gap between signing and handover. If at the end of construction the Romanian bank does not approve the mortgage, or approves less, the balance has to be made up. Check in advance, in writing, what happens in that scenario.
How do I check that a lender is operating legally?
In Israel, a business that provides credit needs a licence from the Capital Market Authority under the Supervision of Financial Services Law. In Romania, non-bank financial institutions are listed in the National Bank's registers. Ask for the full name and the licence number.
Does "no down payment" change the property's price?
No. The price stays the same, and the financing cost of the part you borrowed is added. Compare the total cost, price plus interest, with an offer without additional financing.
The bottom line
"No down payment" is a financing structure, not a discount. It can suit someone whose income carries two loans and who has a plan for handover day. It is dangerous for someone who, because of it, buys a property they would not otherwise buy.
If you have been offered such an arrangement, by us or by anyone else, book a 30-minute call with me. We will put both loans on one page, check the three handover scenarios, and prepare the questions for your bank and your adviser.
Moti Azulay, Compass Group Romania
Sources and data: BNR Regulation 17/2012, Romanian legislation portal · Bank of Israel, draft Supervisor of Banks circular on Directive 329 (16.12.2025) (in Hebrew) · Bank of Israel · National Bank of Romania (BNR) · Economedia, IRCC at 5.57% from 1.10.2026 · Supervision of Financial Services (Regulated Financial Services) Law, Nevo (in Hebrew) · Law 207/2025, Romanian legislation portal. The calculations in the article are for illustration.
This article is for general information only and is not legal, tax or financial advice. The interest rates in the example are for illustration only, and every loan is subject to the lender's approval and to your personal circumstances.
Now you know more.
This article is general information, not legal, tax or financial advice. Consult local professionals before any transaction.
