Not all Bulgarian banks provide mortgage loans for foreign citizens but a few do finance property purchase with mortgaging the purchased Bulgarian property. However the banks which grant mortgage loans to foreign nationalities are conservative in their approach and would anteriorly finance city properties or high end properties with prime location and only after careful evaluation of the asset.
In 2023 the interests rates for mortgage loans in Bulgaria are between 3-3,5 %. The competition in the sector and the dynamics in the field make the banks flexible and open to individual approach.
If you are interested in investing in a property that meets the above criteria you may expect that the bank will provide financing for the following purposes:
For housing needs of the borrower;
For purchase of another property like garage and etc.;
For Purchasing regulated land;
For reconstruction and ongoing repairs and rehabilitation and construction works, furnishing and other property related needs
Before taking a step further please make sure you are aware of some starting points about mortgage loans:
Funding rate is up to 70% of the property market value and opportunity for the customer to be either liable with all his property or to be liable only to the amount of the provided collateral;
the person who applies for the loan should be at least 21 years old
Usually the period for Repayment the Loan is up to 25 years
Currency in Euro or in Bulgarian Leva
On the grounds of a decision taken by the bank’s competent bodies, the bank can grant loans to Borrowers complying with the following general conditions
To receive permanent net monthly income with an amount determined according to the assessment of the borrower’s creditworthiness and credit risk
Employment or civil service relationship under a permanent employment service/civil service relationship order, whereby the borrower has at least 6 months of experience in the company in which he/she works on the date of submission of the loans application, has not given a notice of termination of employment and has received his /her remuneration regularly
Activity as a sole proprietor, as a freelancer or an activity ensuring permanent income for at least one year as of the date of submission of the loan application
The monthly liabilities under the loan shall not exceed the due portion of the net amount of the monthly family income of the borrower. The spouse of the Borrower is always a co-debtor under the loan agreement (with the exception of the loan agreements with limited liability of the Borrower when the spouse is always a co-borrower) and at the same time when he/she is the owner of the collateral he/she shall sign the loan agreement as a mortgagor
The Borrower shall have and dispose of his/her own funds (own participation) in the total amount necessary to finance the purpose of the loan in proportion to the percentage of own participation required by the bank depending on the level of creditworthiness, the assessment of the collateral and credit risk taken by the bank by granting the loan
The purpose of the requested loan shall not contradict the law and the bank regulations
We at Best BG Properties LTD have built good relationships with the banks, working in the field throughout the years and would be happy to introduce your mortgage request to the relevant bank institution in Bulgaria. We can guarantee full support in the procedure. It is important for us that you take an informed decision over clear parameters.
Please feel free to contact us in case you would like to have more information regarding mortgage loans options in Bulgaria.