What is the difference between a mortgage and a home loan?

In short, a home loan allows for a wider range of uses and can have various types of collateral. In contrast, a mortgage has a more restrictive purpose, typically the purchase or construction of a home, and the collateral is the financed property.

What is a real estate loan?
A real estateloan is a loan intended for the purchase, construction, or renovation (modernization) of a home. This type of loan can also be secured by another home, which may be owned by the borrower or by other individuals. 🏡

What is a mortgage loan?
A mortgage loan is a loan intended for the purchase, construction, or renovation (modernization) of a home, which is secured by at least a mortgage on the property financed by the loan.

To take out a loan from Banca Transilvania, you must meet several eligibility criteria:

• You have been earning wages, pensions or other stable income for at least 3 months
• Good payment behavior
• Meet the necessary conditions for each type of credit
• Have a minimum down payment of 15% for credit in lei and 20% for credit in euro

The amount representing the advance payment must be deposited in cash or transferred to the account of Banca Transilvania, or proof can be provided by a bank statement or payment order.

It is good to bear in mind that, in the case of a variable interest rate, it will be updated and modified by the bank on a quarterly basis, according to the specific monetary index. Changes in the reference index and fluctuations in income can affect your ability to repay your installments or the total amount you have to pay.