Moldova has drafted a new law on mortgage loans, which will ensure greater transparency and consumer protection, according to the National Commission for Financial Market (NCFM)
The National Commission for Financial Market (NCFM) announced this, noting that it had developed a draft law that establishes clearer rules for loan agreements intended for the purchase or construction of housing, or those that mortgage residential property. The draft law was developed in the context of Moldova's commitment to harmonizing its national legislation with European legislation and addresses the need to adapt the regulatory framework to recent developments in the mortgage lending market. The draft law introduces a number of measures aimed at protecting consumers and ensuring responsible lending by establishing clear rules for the provision of pre-contractual and contractual information. Additional protections are provided for loans secured by foreign currency, including the consumer's right to request conversion of the loan into another currency and the lender's obligation to notify the consumer in the event of a significant increase in interest rates. The draft law also introduces additional guarantees for consumers experiencing payment difficulties. Thus, the creditor will be obligated to inform the consumer from the first day of default and periodically about outstanding amounts and the consequences of default. The amount of penalties will be limited by law depending on the contractual term and the consumer's situation. The bill also establishes a minimum period between the announcement of early repayment and the commencement of enforcement, and further limits penalties following early repayment. At the same time, the consumer will be able to demand the direct sale of the pledged property before enforcement begins, in accordance with a specially regulated procedure. If the proceeds from the sale of the property do not fully cover the debt, the creditor is obligated to allow the difference to be reimbursed through installment plans adapted to the consumer's situation. Herewith, the legal framework is being improved to prevent abuses in debt collection, such as harassment, threats, or unfounded contacts with others. Another important element of the bill is the establishment of conduct requirements for creditors and credit intermediaries, as well as requirements for the qualifications and remuneration of personnel involved in providing loans. The bill also regulates the activities of credit intermediaries, authorized representatives, and non-financial lenders, establishing a clear framework for market access, organization, and supervision. These activities will require registration in state registries maintained by the National Commission for Financial Market (NCFM), compliance with requirements regarding integrity, professional competence, and the ability to provide services responsibly, and ongoing compliance with these conditions. The draft Law on Credit Agreements Offered to Consumers for Residential Real Estate will be promoted by the Ministry of Finance and will undergo a public consultation process. // 13.03.2026 –InfoMarket.
