The Ministry of Finance proposed the draft order on the guarantee commission that will be applied within the “First House” program for public consultations, IPN reports.

The guarantee commission will represent 0.5% of the state guarantee balance a year. This will be applied in 2018-2019. The financing banks will quarterly transfer the guarantee commission to the Organization for the Development of Small and Medium-Sized Enterprises through which the program will be implemented.

The date when the program will be launched and the lending banks will be announced soon. The state committed itself to guarantee 50% of the balance of the home loan. The program will be implemented throughout the country. The price of homes cannot exceed 1 million lei, while the mortgage loans provided by banks are repayable in at most 25 years. The monthly payment by a beneficiary will not exceed 50% of the net official revenues of the family.

Secretary of state at the Ministry of Finance Iurie Cicibaba said the biggest advantage of this program is the fact that the house can be bought by paying a first installment of only 10% of the price at a time when the banks work with a first installment of 30-40%.