Experts are predicting demand for mortgages to rise by up to 35 per cent in the near future. This comes after a two-year period during which applications for loans under the government’s programme fell by 90%. Rents rose by 30% in 2023, allowing the money to be used to repay mortgages.
One of the beneficiaries of the programme shared her experience: she and her spouse opted for a mortgage five years ago and are now happy as they have their own home. She noted that this is a big opportunity for young people, given the difficulties in saving a significant amount for housing.
Lower interest rates may revive the mortgage lending market in Moldova, especially within the Prima Casă programme. Last year showed only 61 applications against 2,450 in 2021.
Economic expert Veaceslav Ionita expressed confidence that interest rates, which used to be above 12-13 per cent, are now on the decline and may reach 6-7 per cent in the near future, which will be more comfortable for citizens.
The Prima Casa programme provides for the limitation of interest rates: they cannot be revised more than twice a year and must not exceed 4% every 6 months. Since the beginning of the year, 8 applications have already been registered for the first programme.
However, the disadvantage of the programme is the limitation of the house purchase price – up to 1 million lei. This year, the Prima Casa programme will be financed with 170 million lei.