Financing a short-term rental apartment: stress test, bank documents and due diligence

A short-term rental apartment (regim hotelier) bought with a mortgage has to pass three tests before you sign: what the loan costs, what happens to your numbers when takings fall or the rate rises, and which checks you run before paying for the valuation and the notary. This guide starts from October 2026 interest rates, the terms published by ING and Raiffeisen, and the two-room apartment in Constanța we analysed after the season.

Interest rates in October 2026: your starting point

For lei loans granted to individuals after May 2019, the variable rate is made up of IRCC plus a fixed bank margin. IRCC is calculated from interbank money-market rates and applied with a delay: the 5.57% value, in force from 1 October to 31 December 2026, comes from April–June 2026 data and is the first increase after four consecutive declines. For the same reason, the next value is already known: 5.61% from 1 January 2027. For the loan in the example below, the difference means about 11 lei more a month.

On 8 October, the National Bank of Romania held its monetary policy rate at 6.50%, and its next meeting is on 12 November. Because IRCC for the first quarter of 2027 is already set, a November decision could show up in your instalment from 1 April 2027 at the earliest. At ING, the instalment on a variable-rate loan changes once every 3 months, when IRCC is updated.

For a second home bought with a lei mortgage, the minimum down payment is 25%. Some banks also have products designed for investors. With Raiffeisen's property investment loan, the bank generally finances 70–75% of the property's value over 10–25 years, takes an extra look at the investment plan (renting or reselling) and states that the rate may be slightly higher than on a standard home loan, reflecting the investment risk. The maximum amount depends on your income and its stability, your dependants, the property and your debt-to-income ratio, usually no more than 40% of income. At ING, one of the standard conditions is that you own no more than one home when you apply.

The worked example: €105,000 with a 75% loan

We start from the two-room apartment in our analysis for Constanța and Mamaia, bought at the median asking price, with the same income and cost assumptions.

On these assumptions, the monthly instalment is about 2,941 lei (€551), or €6,608 a year. Two points are worth noting:

• At first you mostly pay interest. Of the €6,608 paid in the first year, about €5,882 is interest and only €726 reduces the debt.
• The bank looks at your income first. At a 40% debt-to-income ratio, an instalment of 2,941 lei requires a net household income of at least 7,350 lei a month, if you have no other loans. At 9.5%, the threshold rises to about 8,840 lei. The bank may calculate more cautiously than this, so ask for an exact simulation before you negotiate the price.

The stress test: what happens when something goes wrong

A stress test shows how much you pay out of your own pocket if one or more assumptions don't hold. We combined three risks: the rate rises, takings fall and the loan term is shorter. All figures are hypothetical and rounded, and the test is our own illustration, not a bank's method.

What the table shows:

• The apartment doesn't pay its own instalment in any scenario. The gap ranges from €179 to €480 a month, or roughly €2,150 to €5,750 a year, money that has to come from your salary or other income.
• Break-even is a long way off. For the net result to cover the €551 instalment, the apartment would need to take in more than €14,000 a year, over 55% more than the Constanța average and above the optimistic scenario. Put the other way round, at 7.5% over 30 years the base net result can support a loan of about €36,700, or 35% of the price.
• Compliance costs widen the gap. If you add the accountant and the tourist tax, as in our analysis of compliance costs, the base net result falls to €2,804 and the gap rises to about €3,800 a year.
• A reserve covers gaps, not a permanent deficit. For investment loans, Raiffeisen recommends a fund covering at least 6 months of instalments, about €3,300 in our example. That money covers months without income, for example until the apartment is classified or during a renovation. At a deficit of €294 a month, it is used up in about 11 months.

This doesn't automatically make the investment a bad one, but it changes the question. It is no longer “how much does the apartment earn?” but “can I pay the difference year after year, including in the weakest scenario?”. If the investment pays off, the gain comes from the debt you repay, any rise in value and your own use of the apartment, not from monthly cash flow. For comparison, Raiffeisen gives the example of an €80,000 apartment let for €400 a month, where the instalment can be covered partly or fully by the rent, depending on the rate, the down payment and the term. In our base example, with a 75% loan, short-term renting covers less than half of the instalment.

Fixed or variable rate: what ING's examples show

For the same loan of 320,000 lei over 22 years, with life insurance and income paid into an ING account, ING publishes two representative examples valid until 31 October 2026. The fixed-rate example assumes a 36% down payment.

We recalculated both instalments and they match the published figures. The comparison shows three things:

• In the first 5 years, the fixed option has an instalment about 392 lei a month lower.
• From year 6, its instalment rises by 21% to 2,530 lei, even if IRCC doesn't change, because the margin after the fixed period (2.69%) is higher than the margin on the variable loan (1.95%). From then on, you pay about 48 lei a month more than with the variable option.
• A fixed rate only protects you during the fixed period. If IRCC rises in the meantime, the year-6 instalment will be even higher; if it falls, the variable option benefits straight away and the fixed one only from year 6.

For an investment, the practical rule is to calculate the return with the instalment after the fixed period as well, not just the initial one. A fixed rate makes sense if you want a predictable instalment in the first years, while the apartment builds up its booking history and reviews. A variable rate makes sense if you can absorb a higher instalment. Check the cost of early repayment too, especially if you plan to sell: at ING, partial early repayment and closing the loan through Home'Bank are free. When you compare offers, also factor in the bank's other costs, such as current account fees, not just the interest rate.

How much cash you actually need

The down payment is only the first amount. ING points out that notary fees also have to be paid before the loan is granted. For our example:

At ING, the assessment fee is only charged if you get the loan and is zero if your employer has a payroll agreement with the bank. Home insurance is mandatory: a PAD policy, Romania's compulsory home insurance, and an optional policy for the full value, both assigned to the bank.

Keep a margin for the valuation as well. If the valuer sets a value below the price, you have to top up the down payment. ING notes that the gap may also be a sign that the asking price is too high, which gives you an argument in negotiations. Hypothetically, with a €100,000 valuation and financing of 75% of the valued amount, the loan falls to €75,000 and the down payment rises by €3,750.

The documents banks ask for and the approval stages

The list differs from bank to bank. For a mortgage, ING asks for:

• your identity document, in original;
• the apartment's documents, as copies: the title deed, the cadastral documentation, the land register extract and the registration decision (încheiere de intabulare), with the originals shown at the notary. The bank also accepts the land register extract for information downloaded from epay.ancpi.ro;
• the sellers' identity documents, as copies;
• income documents, only if your salary or pension does not appear in the records of ANAF, the tax authority; if it does, financial approval can be given on the spot.

Raiffeisen adds the valuation report from an authorised valuer and documents on the seller or developer. The bank checks your history with the Credit Bureau (Biroul de Credit) and requires the property to have a land register entry, a cadastral record and registered title. Older homes or those in areas of high seismic risk may need additional analysis. For an investment loan, say from the start that the apartment will be let: the investment plan is part of the assessment.

At ING, approval has two stages, followed by payment:

1. Financial approval. You find out the maximum amount you can borrow: on the spot if your income appears in ANAF's records, or within 2–3 working days. Raiffeisen offers free financial pre-approval, valid for 90 days.
2. Property approval. The valuation, the bank's acceptance of the apartment as collateral and the review of the notary's opinion, followed by signing. This stage takes 1–2 months on average and can reach 3 months at busy times.
3. Payment. After the loan and mortgage contracts are signed, the bank transfers the money to the seller within 1–3 working days.

For the preliminary sale agreement (antecontract), this means a realistic deadline of at least 2–3 months and a deposit conditional on final loan approval. The clauses worth including and the documents the notary asks for are in our short-term rental investor checklist.

After signing, the mortgage and the restrictions in the bank's favour are entered in the land register: you cannot sell or alter the apartment without the bank's consent. At ING, the collateral also includes a movable mortgage over your bank accounts. If you plan a major renovation after the purchase, discuss it with the bank before signing.

Due diligence: cheap checks before expensive ones

The valuation and the notary's opinion have to be paid even if you don't take the loan, and you can lose the deposit paid under the preliminary agreement if you pull out without a clear clause. That is why the order of checks matters:

At the same time, check whether the apartment can be classified in your name, with the owners' association's approval and the consent of neighbours where required, and that the building is not in seismic risk class I. The law prohibits letting space in such buildings; details are in our article on buildings with seismic risk. Compare the seller's payout reports with the range between data sources explained in our guide to AirDNA and KeyBid Puls data.

What the KeyBid PDF report shows, and what it doesn't

The PDF report is generated from the extension for the listing you are analysing, and costs 49.99 lei for listings in Romania and €24.99 for listings in Greece and Spain. It has 5 pages:

• the estimated annual return and the verdict, with the estimated net income, occupancy rate and booked nights;
• the income analysis: gross takings, operating costs, taxes and net income, with the return formula;
• a seasonal analysis and the local market context;
• recommendations, the investment's advantages and a separate section on risk factors and limitations;
• a three-step strategy and the conclusion, with strengths, weaknesses and the final recommendation.

What it leaves out: the return is calculated as net annual income divided by the property price, without a loan, furniture or transaction costs. The report is not an ANEVAR valuation and does not replace the valuation the bank requires. It also states that it is generated automatically from public data and KeyBid Puls algorithms and does not constitute financial or investment advice.

How to use it in your due diligence:

1. Compare the net income in the report with the seller's payout reports and with the range between data sources for the city.
2. Subtract the annual instalments of the loan you are considering, then redo the calculation with a rate 2 points higher and takings 20% lower, as in the table above.
3. Turn each point in the risks and limitations section into a question for the seller, the owners' association or the bank.
4. Show the report to the bank as your own analysis of the investment, alongside the required documents, not instead of them.

We explain how to read the colour-coded label and generate the report step by step in our guide to the KeyBid ROI Calculator extension.

Common mistakes

• Calculating only with the initial fixed rate. In ING's example, the instalment rises by 21% from year 6. Run the numbers with the instalment after the fixed period too.
• Assuming the apartment will pay its own instalment. With a 75% loan, takings in our example would have to be more than 55% above the Constanța average.
• Confusing the reserve with covering the deficit. The 6 instalments you set aside cover months without income, not a gap of €294 a month, year after year.
• Funding the down payment with a personal loan. The combined instalments can become very high, and ING warns that you won't be able to take out another personal loan later for renovation and furnishing.
• Signing the preliminary agreement without a financing condition. Property approval can take 1–3 months; tie the deposit to final approval and set a realistic deadline.
• Assuming the valuation will match the asking price. If it comes in lower, you top up the down payment. Keep a margin in your budget and use the gap in negotiations.
• Treating the PDF report as a valuation or as a calculation with a loan. It is an analysis of the return without financing; you add the instalment and the stress test yourself.

Frequently asked questions

Can I include short-term rental income in my mortgage application?

It depends on the bank and the product. Raiffeisen accepts rental income as long as it can be officially certified, and for income that doesn't come from a salary it looks at consistency over the last 6–12 months; for property investment loans, it may in some cases also take potential rental income into account. At ING, the standard conditions require a permanent employment contract with a net income of at least the minimum wage. An apartment you haven't operated yet has no track record, so your current income will matter most. Ask the bank before you sign the preliminary agreement.

Is a fixed rate worth it for an investment apartment?

It is if you want predictable instalments in the first years. Don't choose it just for the low initial instalment: in ING's example, the instalment rises from year 6 from 2,090 to 2,530 lei, even if IRCC doesn't change. If you plan to sell or repay early, check the cost of early repayment as well. With a variable rate, you already know that IRCC will be 5.61% from 1 January 2027.

How much cash do I need for a €105,000 apartment bought with a mortgage?

In our example, about €40,000: a €26,250 down payment, €10,000 for furniture, equipment and paperwork, around €3,300 as a reserve for 6 instalments and around €400 in loan-related costs. On top of that come the notary's fee for the mortgage contract, insurance and a margin in case the valuation comes in below the price.

Can the KeyBid PDF report replace an ANEVAR valuation?

No. For a mortgage, the bank requires a valuation by an ANEVAR-accredited valuer; at ING, you can choose a valuer from the bank's list or any other ANEVAR-accredited valuer. The KeyBid report is an analysis of the rental return that you use before paying for the valuation, to decide whether it is worth going further.