A clean title, a registered permit, the developer's identity and standing, and a structure that allows registration in your name.
Under the Nordis law, advances go to a dedicated project account with caps per stage. The law protects your money; the bank checks its collateral.
The preliminary contract terms, build quality and management, and what happens after handover. Those are for you and your own lawyer.
Repayments are capped at about 40% of net income on a lei loan, and about 20% on a foreign-currency loan if you earn in another currency.
An approval in principle and a bank valuation are cheap due diligence. In our Balotești project, local bank financing of up to 70% is offered.
A Romanian bank mortgage: the question you ask, and the one worth asking
Almost every first conversation I have with investors from abroad reaches the same question sooner or later: "Moti, can we even get a mortgage from a Romanian bank?"
A fair question, and we will get to it. But I always ask people to swap it first for the opposite, smarter question: is a Romanian bank willing to put its own money into the project you are considering?
Because a bank does not lend blindly. Before it approves mortgages in a new development, it carries out, at its own expense, a large part of the checks you would otherwise have to do yourself. In this article we break down what the bank checks, what it does not check, and how to use its approval as a due diligence tool, even if you do not need financing at all.
For the terms themselves, eligibility, loan-to-value and interest rates, see our complete guide to a Romanian bank mortgage, and for the non-resident angle, our article on mortgages in Romania for non-residents.
What a Romanian bank checks before approving mortgages in a project
A bank that approves mortgages in a new development looks at the property and the developer first, and only then at you. These are the core checks:
- A clean title for the land and the units in the land register (Cartea Funciară), with no open charges or seizures.
- A registered, valid building permit.
- The developer's identity and financial standing: who is behind the company, and what shape it is in.
- A sound ownership structure: that the unit can be lawfully registered in your name, and that the bank can register a first-ranking mortgage on it.
In projects where the bank also finances construction, the scrutiny goes deeper. Construction funds are released according to actual progress, based on reports from valuers and supervisors, and the bank must consent to releasing its charge on every unit sold.
What this means: a project in which banks approve mortgages has passed institutional screening by a lender supervised by the National Bank of Romania. A legal department and a risk department looked at it and decided to put their own money behind it. That is a green light no advertising budget can buy.
The stamp and the law: the bank and the "Nordis law" together
Since Law 207/2025, known as the "Nordis law", buyers of off-plan property have an extra layer of protection: the advances you pay under the preliminary contract go into a dedicated project account, with caps for each construction stage. We explain this in detail in our article on how your money is protected off-plan.
The law and the bank check different things. The law protects your money on the way to the final contract and registration in your name. The bank checks that its collateral, the property itself, is sound and registered.
A developer who meets both the law's requirements and the bank's sits at the highest safety bar the Romanian market has known so far.
What the bank does not check for you
Precision matters here. A bank approval is a strong risk filter, not a guarantee.
A mortgage is not just financing. It is the opinion of a supervised institution that examined the project at its own expense.
The bank checks what matters to the bank: collateral, registration and repayment. Several important things remain your job:
| What gets checked | The bank | You |
|---|---|---|
| Title, permit, ownership structure | Yes | Yes, through your own lawyer |
| Developer's standing | Yes | Yes |
| Price against the market | Partly, via the valuation | Yes, with a valuer and comparables |
| Terms of the preliminary contract | No | Yes |
| Build quality and management | No | Yes |
| What happens after handover | No | Yes |
The last row is the one that counts. The bank is covered: it holds a charge on the property. You depend on whoever sold to you, including the day after you get the keys. No bank will ask that question on your behalf.
What it costs: the fees to get in writing
Beyond the interest rate, the loan itself carries costs. Amounts vary from bank to bank, so the rule is simple: get everything in writing, before you sign, and compare.
- Application and file-analysis fee.
- The bank's valuation, paid by the borrower.
- Building insurance with the bank as beneficiary, plus life insurance if required.
- Fees for registering the mortgage in the land register.
- The notary's fee for the loan agreement.
- On a fixed rate: the early repayment terms.
The bank's valuation is also a bonus: a price opinion from a valuer on the bank's list, independent of the seller.
Five questions to ask before you sign a Romanian bank mortgage
- Currency against currency. The loan is in lei; your income is in shekels, dollars or euros. A currency mismatch is a real risk. On top of that, the central bank caps total monthly repayments at about 40% of net income for a lei loan, and at only about 20% for a foreign-currency loan when your income is in a different currency. Ask whether a euro loan is even relevant to you.
- Fixed or variable. Variable is usually about 0.5 to 1 percentage point cheaper, but it is tied to local indices. Fixed buys certainty.
- Fees and early repayment. A full breakdown in writing, including the exit terms.
- Comparison. At least two or three offers, directly or through a broker. The gaps between banks are significant.
- Tax at home. Mortgage interest is part of cross-border tax planning. Settle the structure and the financing together with a tax adviser, before signing, not after.
Even without financing: approval in principle as cheap due diligence
This is the advice I give cash buyers too: ask for an approval in principle and a bank valuation. It is one of the cheapest due diligence checks you will ever run on a project.
If a local bank is willing to lend against the property, you have institutional screening of the land, the permits and the developer. If the bank hesitates, that is information you want before the preliminary contract, not after it.
In our project in Balotești (covered by Walla Nadlan, in Hebrew), for example, buyers are offered local bank financing of up to 70%, subject to bank approval and the borrower's profile. But the advice holds for any project you are looking at, ours or anyone else's.
Frequently asked questions
Does a bank approval guarantee the deal is safe?
No. A bank approval is a strong risk filter, but the bank checks what matters to it: collateral, registration and repayment. The price against the market, the contract terms, build quality and what happens after handover are for you to check, with your own lawyer and valuer.
How do I find out whether a bank approves mortgages in a specific project?
Ask the developer which banks have approved the project, then go to the bank itself and request an approval in principle for a specific unit. That approval is also the figure you build your budget around, because it tells you how much you will actually get.
Who pays for the bank's valuation?
The borrower. The valuer is chosen from the bank's approved list, and the cost varies between banks. The upside is a price opinion that does not depend on the seller, which is also useful in a price negotiation.
Can I sign the mortgage remotely?
No. Notarial signing in Romania cannot be done remotely. You can attend the signing in person, or sign a power of attorney in advance so that a representative signs on your behalf before the notary in Romania.
How is the bank's check different from my own due diligence?
The bank checks that the property can serve as collateral for the loan. Your due diligence checks that the property is right for you: price, debts, charges and contract terms. We set out the full process in our guide to checking a property for debts and liens.
The bottom line
In one line, a mortgage is not just financing. It is the opinion of a supervised institution that examined the project at its own expense.
But it does not replace your own checks. It adds to them.
If you are looking at a project in Romania right now, ours or any other, book a 30-minute call with me. We will go through the questions for the banker together, and through what the bank will not check for you.
Moti Azulay, Compass Group Romania
Sources and data: National Bank of Romania (BNR) (DSTI limits) · International Monetary Fund (IMF), Working Paper WP/19/182 on DSTI limits in Romania · National Agency for Cadastre and Land Registration (ANCPI) · Romanian legislation portal (Law 207/2025) · National Union of Public Notaries of Romania (UNNPR) · Walla Nadlan · DLA Piper Real Estate · CMS Expert Guide: Real Estate Finance Romania · Exim Banca Românească.
This article is for general information only and is not legal, tax or financial advice. Mortgage terms 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.
