What is the difference between a real estate loan and a mortgage loan?

In short, mortgage loan allows a wider range of destinations and can have various types of guarantees. On the other hand, the mortgage loan has a more restrictive destination, usually the purchase or construction of the dwelling, and the guarantee is the financed property.

What is a mortgage loan?
Mortgage credit is a loan intended for the purchase, construction, or renovation (modernization) of a dwelling. This type of credit can also be guaranteed with another dwelling, which may be the property of the credit beneficiary or other persons. 🏡

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

To take out a loan from Banca Transilvania, it is necessary to meet a few eligibility criteria:

• To obtain salary income, pensions, or other types of stable income, for at least 3 months
• Have good payment behavior
• To meet the necessary conditions for each type of credit
• To have a minimum down payment of 15% for the loan in lei and a minimum of 20% for the one in euros

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

It is good to take into account that, in the case of a variable interest rate, it will be updated and modified by the bank quarterly, depending on the specific monetary index. The variation of the reference index, as well as the fluctuation of income, can influence the ability to pay the installments or the total amount to be paid.