Expert: Interest rates could double for many Romanians this fall

  Romanians who refinanced their loans 3 years ago risk, as of October 1, to automatically switch from fixed to variable interest rates. For many of them, the cost of borrowing could even double.   “Three years ago, many Romanians refinanced their loans. For those who are now at the end of their fixed-rate period, there is a real risk that they will automatically switch to variable interest from October 1. In practical terms, the total interest cost could double from 5% to more than 8% – calculated as the IRCC (6.06%) plus the bank’s margin, which can vary between 1.5% and even 3%,”  says Claudiu Trandafir, financial expert and founder of OferteBancare.ro.   Experts advise consumers to check their contracts and talk to their bank about refinancing options. “Those who are in such a situation should apply for an internal refinancing to secure their interest rate for at least another 3 years,” adds Claudiu Trandafir.   Fixed interest rates are not completely free of adjustments either: banks are already announcing moderate increases. “From the current level of 4.7%, we expect increases of between 0.3% and 0.5%. However, even so, interest rates remain at half of inflation – a sign that there is liquidity in the market,” shows Claudiu Trandafir. IRCC reflects the average cost of borrowing between banks in the previous quarter. In the current context, marked by inflation and fiscal uncertainty, the index has an upward trend. A concrete example shows the direct impact in the pocket: a Romanian with a 30-year loan of RON 300,000, with a margin of 3.5%, today pays a monthly installment of around RON 2,021, at an interest rate of 9.05%. As of October 1, the rate will rise to RON 2,113, as the IRCC increases to 6.06%. The difference is almost 100 lei per month, without the borrower making any changes to the contract.   Claudiu Trandafir is an economist and financial expert with more than 25 years of experience in the financial banking sector, especially in the credit market. He is the founder of OferteBancare.ro, a platform developed together with Kiwi Finance, a leading credit broker in Romania. The platform offers financial education, transparent comparison of credit offers and digital tools for both customers and brokers, facilitating informed and fair decisions.