Mortgages

Just few years ago the mortgages in Bulgaria were in their infancy, there was only one choice of lender and getting a mortgage was time consuming and expensive. Today, things have moved on considerably and getting a Bulgarian mortgage is much easier. After deep research, SIPA SA chooses four of the biggest lenders in Bulgaria maintaining the lowest fees. Whether you are buying an off plan apartment, house in the country, plot of land or even a hotel, we will have a mortgage to suit you.

United Bulgarian Bank
www.ubb.bg

Loan to Value	60% of property price
Interest Rate	0.90% for year 1 or 5.9% for the first 3 years, then 7.95% for the remainder. Or 6.5% fixed entire period
Currency	EUROS
Term	Up to 25 years
Loan amounts	7,500 EUR min – 150,000 EUR max
Total credit limit	150,000 Euros (if eligible)
Available to	EU, USA or Canadian Citizens
Repayment method	Repayment only
Bank’s Arrangement Fee	Bank’s Arrangement Fee
Bank’s Legal Fee	40 Euros
Valuation fees	100 Euros (approx)
Insurance	Life insurance; Property insurance
Redemption penalties	5%
Staged payments	Only upon reaching shell stage
Bank Account	Required

Bulbank UniCredit Group
www.bulbank.bg

 

Loan to Value	65% of property price
Interest Rate	7.58% variable
Currency	EUR, BGN
Term	15 years maximum
Loan amounts	Unlimited if your incomes allow
Total credit limit	Unlimited if your incomes allow (repayments max 20% of monthly income)
Available to	UK & Irish, USA ,EU or Canadian citizens
Repayment method	Repayment only
Bank’s Arrangement Fee	1% of loan upon signing and 0.25% annual charge
Bank’s Legal Fee	40 Euros
Valuation fees	100 Euros (approx)
Insurance	Buildings required
Redemption penalties	5% in first two years. 3% afterwards
Staged payments	Not available
Bank Account	Required

"Allianz Bulgaria" Commercial Bank
www.bank.allianz.bg

 

Loan to Value	75% of property price
Interest Rate	* The current BIR of "Allianz Bulgaria" for loans in EUR and USD is 7,6% and 8,1% for loans in national currency.
Currency	EUROS, USD
Term	20 years maximum
Loan amounts	150,000 EUR max
Total credit limit	150,000 (if criteria are met)
Available to	UK & Irish, USA ,EU or Canadian citizens
Repayment method	equal monthly installments;  decreasing monthly installments
Bank’s Fee	One-time management fee: 2 % on the loan disbursed; Prepayment fee: 3,5 % – 5 % on the prepaid principal
Valuation fees	100 Euros (approx)
Insurance	Covered by the bank
Bank Account	Required

First Investment Bank
www.fibank.bg

 

Eligible borrowers	Every able local or foreign citizen (if the acquired property is a plot or comprises ideal parts of a plot, a local citizen should acquire the property)
Maximum loan amount	No Limits
Currency	EUR, USD, BGN
Maximum term	240 months
Loan purpose	Acquisition of a real estate
Interest only period - (a period when borrower pays only interest)	Up to 12 months-the standard interest rates applied Up to 24 months-the standard interest rate increased by 0.5% is applied Up to 36 months-the standard interest increased by 1% is applied
Minimum down payment	20% of the market valuation of the property 30% of the market valuation of the property if it is not fully completed (Form №15)
Collateral	Mortage on a property
Interest rate	from 6.9% (BIR/ EURIBOR/LIBOR plus points) - more than 30% down payment from 8.4% (BIR/ EURIBOR/LIBOR plus points)- from 20% to 30% down payment
Penalty interest rate (in case of overdue payments)	Interested rate agreed + 20 points
Utilization	According to utilization plan
Repayment	Equal monthly instalments during the whole loan term, after interest-only period
Loan application and processing fee	50 EUR
Mangament fee	2 %
Early repayment charge	2 % / 5 %
Commitment fee	0.5 %
Renegotiation fee	1.5 %
Valuation fee	Paid by the Borrower Depends on the area of the apartment 100 BGN ( for apartments with area up to 100 sq.m.) Surcharges apply for apartments with bigger area
"Life" insurance - option	Paid by the Borrower
"Property" insurance	Paid by the Bank

The documents you will need to submit vary from lender to lender, but as a rule, you will have to supply at least the following

• Personal identity card (passport) and proof of permanent address
• Bank statements from the last 6 months
• Property tax base certificate
• Preliminary purchase-sale agreement
• Certificate for absence of encumbrances on the property
• Certificate from local tax authorities, etc.
• Referral letter from your bank
• Two most recent P 60 tax declarations
• Self employed applicants will also be required to supply copies of their most recent tax return.

Documents will need to be legalized according to your country’s official procedure.
Additional documents may be required, depending on which lender you choose.