Mortgages in Bulgaria for your property in Bulgaria
Getting a Mortgage in Bulgaria
Although, buying in Bulgaria is fairly straightforward, buyers still have to be cautious. Those who have bought off plan in Spain will know that it is important to make sure that the developer has a bank guarantee in place before signing anything. However, the banking system in Bulgaria has not yet reached this stage so developments do not have bank guarantees as such. Please don’t be put off as there are measures around this.
You should be able to borrow up to 85% of the property’s value.
Properties can be purchased either individually, in joint names or in the name of a company.
Max term 15 years up to 70 years old.
25,000 EUR minimum loans.
Euros only
Repayment mortgages only.
Rates from 7.50% variable in Euros.
If a property is currently under construction, funds are not available until completion and it is legally registered in your name.
Foreigners are not yet entitled to own land, although building ownership is allowed i.e. leasehold ownership.
Foreigners can own land through a company.
Start work early as they can take up to 12 weeks to process a mortgage application. Make sure that you do not commit to complete without 12 weeks of time to prepare your mortgage.
Be careful in Bulgaria because the valuation price can be lower than the purchase price which means that you may have to use your own cash to pay a larger sum.
Non-Status loans are currently not available.
Loans are based on your incomings and are calculated on an affordability basis. All current outgoings including any mortgage/rent payments, loans, credit card payments and your proposed Bulgarian mortgage payments must not exceed 40% of your net monthly income.
Major Banks in Bulgaria
Raiffesisen Bank www.raiffeisen.bg/
Bulgarian National Bank www.bnb.bg/
Citibank www.citibank.com/bulgaria/corporate/english/index.htm
DSK Bank PLC.
Good luck getting your mortgage in Bulgaria!