ROBOR vs IRCC: repayments, differences and switching

ROBOR or IRCC? If you already have a loan, start with the formula in your contract, not the lowest percentage in a headline. The relevant index, the bank's margin and the date when your interest rate is recalculated all matter.

A lower index does not guarantee a cheaper loan.

This guide compares the mechanisms and the questions to ask before making a change. Current readings remain on our IRCC data and repayment calculator page.

ROBOR vs IRCC: the difference that reaches your repayment

ROBOR uses interbank quotations. IRCC uses actual transactions.

ROBOR is a reference rate for the Romanian leu money market, published for several maturities. Loan contracts may refer, for example, to three-month or six-month ROBOR.

IRCC has a daily reading and a quarterly value used in the loan formula. The daily reading reflects interbank transaction rates weighted by transaction volume; the quarterly index aggregates daily observations. This methodological difference alone cannot tell you which loan costs less. Two borrowers can share an index and still make different repayments because their balances, margins or remaining terms differ. A useful comparison begins when those elements are placed on the same basis, rather than treating the index as the whole financing offer.

Do not compare three-month ROBOR with an isolated daily IRCC reading. You need the contractual reference applicable to your repayment period, not simply the newest point on a chart.

Who is covered by the change of 2 May 2019?

The loan currency changes the answer.

The rules introduced by OUG 19/2019 concern variable interest on leu loans granted to consumers. They do not automatically replace euro-loan indices or fixed interest rates.

Article XI applies the new rules to loans granted after 2 May 2019 and to refinancing loans already outstanding. Existing contracts can be amended by agreement between the parties, recorded in an addendum. The original contract date provides a useful starting point, but read any later amendments too: the formula currently governing your loan may already differ from the one you originally signed.

If you are looking for a new mortgage, start with our mortgage comparison. Compare interest structures and costs without assuming that every index is freely selectable.

Why IRCC responds with a delay

The transaction date and the application period are different.

At a quarter's end, daily values from the preceding quarter are averaged for application in the following quarter. BNR presents daily observations separately from the quarterly index.

A calendar example makes the sequence clearer: transactions in January–March feed into the index applied in July–September. Market conditions can move up or down in between. A difference between IRCC and ROBOR on one day therefore does not establish guaranteed savings over the coming years. Calling this a “six-month delay” is shorthand: the observations cover a period rather than a single date, and your own contract determines when the loan's interest is updated and when repayments fall due.

Check the period behind each figure. An average for a quarter still in progress is not final and should not be presented as an official new BNR announcement.

Your interest rate includes the bank's margin

The index is only one component of the loan's interest.

In a typical variable-rate formula, the nominal annual interest rate combines the reference index and the contractual margin. APR serves a different purpose: comparing annual overall borrowing costs.

Consider two hypothetical proposals. One uses a 5% index and a margin of three percentage points; the other uses a 5.5% index and a two-point margin. The resulting nominal rates are 8% and 7.5%. Here, the lower index appears in the more expensive interest-rate formula. These are neither BNR readings nor bank offers. They demonstrate why you should inspect the margin before attributing an entire price difference to the choice of index, even when the headline comparison appears straightforward.

Keep nominal interest, APR and the monthly repayment separate. If the documents do not explain their relationship, request a breakdown using the same amount and repayment term.

Example: a one-percentage-point change in interest

You cannot calculate the effect by subtracting a percentage from the instalment.

The illustration uses an outstanding balance of 300,000 lei, 20 years remaining and equal monthly instalments. The interest rates are hypothetical scenarios, not forecasts or available offers.

The calculation uses the annuity formula, an annual rate divided by 12 and 240 payments. It excludes insurance, fees and bank-specific day-count conventions. Each row holds its assumed interest rate constant; an actual variable-rate loan may be recalculated later. The difference between rows isolates the interest-rate effect. It does not imply that someone with a different balance or remaining term will experience the same change, nor that any of these assumed rates will apply for the lifetime of their loan.

Enter your balance and remaining term in the mortgage simulator. Compare its indicative result with a personalised repayment schedule obtained from your bank.

What happens when market rates rise or fall?

A delay can help temporarily or work against your budget.

When interbank rates rise rapidly, an index based on an earlier period may still reflect lower levels. During a decline, it may retain higher earlier values for a while.

This explains a timing effect, not a permanent ordering of the two indices. ROBOR and IRCC have different calculation bases, and the selected ROBOR maturity also matters. An option that costs less on the day you submit a request may not remain cheaper. A long-term decision based only on today's difference leaves out the years during which you will continue repaying and the possibility that interest rates move against your expectations. Assess what you could afford under that less favourable outcome as well.

Run both a favourable scenario and a more demanding one. The most optimistic result from a calculator should never be treated as a promise from the lender.

Switching from ROBOR to IRCC: what to request

Begin with a written request rather than an assumption.

Ask for the proposed formula, margin, effective date, possible costs and a new schedule for your remaining balance and term. Keep the request's registration reference.

Article XI of OUG 19/2019 provides for both parties' agreement to amend an existing contract and a response within 60 days to the requests it covers. A response deadline is not automatic acceptance. Before signing, compare the proposed addendum with your current documents and identify every altered condition, not just the index name. Ask for a written explanation of your subsequent options too. Do not make the decision on the assumption that you can freely return to the previous formula whenever you choose.

If the response shows only the first month's repayment, ask for the underlying assumptions. Without the margin, date and balance, you cannot verify the advantage being presented.

Changing the index or refinancing the mortgage?

These are separate operations and need separate comparisons.

An addendum changes an existing contract. Refinancing uses new borrowing to repay the old loan and comes with its own approval conditions and costs to assess.

Place three options side by side: retaining the loan, accepting the current bank's proposed amendment and refinancing. Use the same starting balance and comparison period. If a replacement loan runs longer, include the debt remaining at the end of that period. Lowering a repayment by spreading it over more years does not, by itself, prove savings. Include confirmed costs and label estimates clearly, so the expenses needed to move the loan do not disappear from the calculation precisely when you need to compare them.

For housing debt, use the mortgage refinancing comparison. For other borrowing, visit the general refinancing page rather than combining different product types in one ranking.

Comparing an introductory fixed rate with a variable rate

An initial fixed rate may not cover the full loan term.

Check how many months or years it lasts, then read the formula applying afterwards. Establish whether discounts depend on salary payments, an account or insurance.

The comparison needs two periods: the introductory arrangement and what follows. Use the offer's firm conditions for the first and explicit index scenarios for the second. Do not apply a promotional fixed rate across the whole term in one column while using a cautious variable-rate assumption in the other. That would create a difference through the assumptions rather than the products. Record when each benefit ends and which associated expenses apply, so an interest discount does not conceal an additional compulsory cost.

Our fixed versus variable mortgage guide explores that choice further. Here, the focus remains on the index and checking the contractual formula.

A checklist before you sign

Put the contract, proposal and repayment schedules together.

Record the balance, remaining term, precise index, margin, next update and additional payments. Separate confirmed information from questions that still need an answer from the lender.

Check whether the documents use the same reference date. Between your request and the offer, an ordinary repayment may reduce the balance; an inattentive comparison could attribute that reduction to changing the index. Check the recalculation frequency, any conditions attached to discounts and how long the proposal remains valid. If two figures do not match, request an explanation rather than filling the gap with assumptions. Missing information is a reason to continue checking, not to automatically choose whichever option displays the smallest initial monthly payment.

Kreditano editorial perspective: compare the same debt over the same period. An attractive initial instalment cannot replace checking the margin, expenses and balance remaining later.

Questions worth asking directly

The index value alone cannot resolve every uncertainty.

If your repayment has not changed after a news report about interest rates, ask for the next update date and the value used. Check the answer against your contract.

When a bank presents savings, ask what alternative it has used: the same term, insurance arrangements and repayment method? If the proposal involves refinancing, request the initial expenses separately. Our mortgage costs guide helps organise them without counting the same payment twice. You do not need a certain interest-rate forecast to check these details. You need comparable documents and clear answers about your own contract, including the assumptions used for any headline saving and the costs left outside it.

The decision depends on your budget and the conditions offered. Neither ROBOR nor IRCC guarantees that a particular loan will remain the cheapest option over time.

See the applied value, daily series and payment calculator in the Kreditano IRCC tracker. →