In times of economic uncertainty with drastically reduced wages, mass layoffs and no other financial assistance, people often turn to banks for loan options.
To help provide valuable and forward-looking information to our readers, Economic.Bg is proud to release a series of resources detailing the credit products offered by the seven largest banks in Bulgaria according to the Bulgarian National Bank (BNB).
What are the conditions for mortgage loans of the Bulgarian central banks banks?
1. Unicredit
The largest banking institution in the country provides four options for a mortgage loan – a traditional option in BGN, an alternative option in Euro, a universal mortgage loan with everything included and an offer for persons without permanent residence in the country.
Buyers can take advantage of conventional mortgage loans in BGN and EUR, which finance up to 85% of the property’s market value. Collateral requirements are flexible, ranging from a mortgaged house to other properties or financial guarantees.
This loan is intended to help finance the purchase, construction, renovation, completion of a residential property and the refinancing of similar existing loans.
Until July 31, take advantage of the promotional interest rate of 2.80% and save on your loan in BGN! To be eligible for the preferential product, applicants must transfer their remuneration to an account in our bank. Remember that you need a minimum loan amount of BGN 200,000 and a net monthly income of at least BGN 2,600. Take advantage of repayment terms of up to 35 years – start today!
Our universal mortgage loan allows you to finance your current needs without the need for supporting documents. In addition, our program offers a repayment period of 15 years and financing up to 70% of
the market value of the property – in BGN or EUR! With no prepayment fee after one year, this is an ideal product for those who want to pay off their loan faster and more efficiently. If you prepay before a year is up, we’ll only charge 1% of the loan amount. In addition, for customers without permanent residence in Bulgaria, our bank provides mortgage loans up to 70% of the market value of their property and does not require life insurance. We want to ensure that all mortgage seekers have access to finance regardless of their residency status! This loan is intended to finance the acquisition of residential real estate or the refinancing of a similar targeted loan. The maximum repayment term that you can avail of this deal is 25 years, with withdrawals available in Bulgarian levs and euros. A property mortgage, financial security, insurance for the mortgaged house or 3/6 installments on a linked bank account are acceptable guarantees to secure the loan. To qualify for one of our credit products, you must have worked for at least one year and have a minimum income of BGN 300 per month (BGN 2,600 to qualify for a loan with a promotional interest rate). In addition, regular payments are required on your current loans. Finally, borrowers must be at most 70 years old when the loan period ends, as specified in our bank’s requirements. Loan financing is often spread over either a single payment or several installments, by mutual agreement between the Bank and the client. This allows for a grace period on the principal, which usually varies from 6 to 18 months depending on the purpose of the loan.
2. DSK
Are you looking for a mortgage loan in Bulgaria? Look no further – the country’s second largest bank offers five different options to suit your every need. Whether you want to buy a property, finance current needs or refinance existing debt – they have it all! From residential and non-residential properties to building works and improvements, their extensive products are sure to meet your requirements.
If you want to use this loan to buy a residential property, the ideal option is an unfinished house, garage or cottage. In addition, this loan can be
financed and with housing or villa plots regulated by local authority standards.
This loan is intended to finance the construction of a residential property and the necessary internal improvements. So whether you’re starting from scratch or looking to renovate an existing house, this proposal will help you make it happen!
Interest rates below 2.99% are suitable for both loans. However, the actual interest rate will be calculated based on your credit profile, the type and size of the loan, and other products or services associated with the bank itself.
The loan for the purchase of non-residential property is designed specifically for this purpose. For immediate financing needs, our loan also covers various requirements and purposes, including real estate investment. Depending on the customer’s credit rating, the type of loan taken out and the other services purchased from us, the interest rates are calculated individually, so you can rest easy knowing that they will be tailored to your situation.
DSK Bank’s refinancing loan allows you to quickly refinance an already used loan, regardless of whether it is from DSK or another bank. The minimum amount for all our mortgage products is BGN 5,000 (EUR 2,500) and the maximum
BGN 400,000 (EUR 200.00). You can repay your debt for up to 30 years with most loans; however, if you use the funds to acquire non-residential property, repayment must be made within 25 years.
3. Post Bank
The fourth largest bank in Bulgaria provides a range of mortgage credit products to its users, including Super housing loans in euros, housing loans in BGN, savings housing loans, mortgage overdrafts and consumer loans with a mortgage. In addition, they offer their exclusive product – Home Loan.
The Super Home Loan can be used for various purposes such as buying a home, building or completing a home, repairing and renovating a home.
existing homes and refinancing other debt. All loans are provided in Euros with a fixed interest rate between 2.99% to 4.99%, making it a desirable offer on the market! Also, this special offer is only available until the end of July, so make sure to take advantage of it! You can also choose repayment periods of 10-30 years – ideal for longer-term investments. If you work on a contract, your loan request will also be processed faster than ever before – what more could you ask for? Available credits can reach up to 250,000 euros.
You can finance up to 80% of the market value of the property, with repayments equal to or less than the monthly payments. You won’t pay any credit check fees if you choose Post Bank!
If you want to buy a property or refinance an existing loan, you can take advantage of our housing loan in BGN! With the best interest rates, ranging from 2.80% – 3.95%, we provide up to BGN 500,000 with a repayment period of up to 35 years for new home loans and 20 years for refinancing other debts over BGN 100,000. So take advantage of this fantastic opportunity today!
Act now and take advantage of our New Home Savings Loan product while the terms remain valid until July! Whether you’re looking to buy a home, build one, or make renovations/improvements to your current home, this loan is perfect. We offer financing up to 85% of the market value in BGN and EUR with a minimum amount of BGN 15,000 and a maximum of BGN 500,000. And best of all, repayment is available for over 35 years! So don’t miss out – get started today!
With an interest rate of 4.15%, this loan offers a unique feature that allows your savings to positively impact your repayments: as you save more money, a smaller portion of the loan accumulates each month, resulting in lower monthly loan interest . Plus, it only requires a checking account for eligibility – and if used correctly, it can shave 11 years or more off your total repayment period!
A mortgage overdraft allows customers to access the same loan funds repeatedly within five years. This term consists of two parts – an overdraft phase and a repayment phase. Customers can withdraw from their loan as often as they need during the first section, while only being responsible for interest payments on the amount used. During this time, there is no set payment plan as it is based solely on basic usage. The loan repayment term includes decreasing installment payments each month, including principal and interest. This form of financing has a much longer term than consumer overdrafts – up to 25 years! You can use this financing for home purchases, construction projects, repairs, improvements and refinancing. The maximum allowed amount is BGN 160,000 (EUR 80,000). The accepted currencies are both the Bulgarian Lev and the Euro.
The “U doma” consumer loan with a mortgage is ideal for people living abroad who want to buy a property in Bulgaria. Financing options are offered in BGN and EUR with interest rates of 4.25-4.45%. The loan can be up to BGN 100,000 depending on the market value of the real estate collateral, and the repayment terms vary from 5 to 25 years, respectively. This convenient program allows foreign residents to confidently invest in housing at home! Suppose you want to take advantage of our credit program. In this case, you must have officially certified employment income from a foreign country and have an open-ended contract in the EU, the European Economic Area, Switzerland, Canada or the USA. Then complete your application online with ease! We grant loans of up to BGN 500,000 or EUR 250,000 with a repayment term between 5-25 years. We also offer to finance up to 70% of the market value of any property acquired through this service.
4. UBB
Until June 30, 2020, UBB – the third largest bank in Bulgaria – offers promotional interest rates on its mortgage loan for the purchase of real estate! In addition to this amazing opportunity, they also have three other products – a refinance mortgage loan, a current needs mortgage loan and one with
fixed interest rate. So don’t miss this fantastic chance to save money and make your dreams come true! Our loan offer is designed to meet your needs! We offer a maximum of BGN 500,000 for loans, with an interest rate of 2.80% for those over BGN 60,000 and 3.75% for larger amounts than this amount – all with repayment up to 30 years. Additionally, we also provide pre-approval within a day before you’ve even settled on the property you want to buy; plus, get the loan in Bulgarian lev or euro. Rest assured that getting what you need has never been easier with our bank’s flexible lending system!
Now is the time to prioritize our promotional mortgage refinance loan! With interest rates that will not last until the end of June, you can secure up to BGN 500,000 for the purchase of a residential property or plot of land and BGN 200,000 for
current needs such as repair or reconstruction. Take advantage of this exceptional opportunity – refinance your debts from other banks with us today! In addition, until June 30, you can take advantage of the absence of a credit assessment fee – in the amount of BGN 200 for mortgage loans when purchasing real estate. In addition, interest rates vary between 2.80% and 3.95% depending on the size of the loan. In addition, our maximum repayment term is up to 20 years for current mortgages and up to 30 years for property purchases; we offer options in both BGN and EUR! Take advantage of the promotional floating rate offered by our Bank on the mortgage loan for current needs, already set at an impressive 3.95% until the end of June! The maximum amount due is BGN 120,000 or EUR and can be repaid within up to 20 years. In addition, there will only be a small administrative fee of BGN 200. So don’t wait – take advantage today!
Now is the perfect time to take advantage of this amazing offer – you can secure a fixed-rate mortgage loan for BGN 500,000 with an initial interest rate of 2.95%, which will remain unchanged for three years! Take advantage of promotional prices until the end of June and pay off your loan for up to 30 years. So take advantage of this attractive opportunity – get your low-interest loan in minutes right now!
5. Raiffeisenbank
The sixth largest bank offers three mortgage credit products – a home loan with 3 or 5 year fixed rate options, a standard home loan and a consumer loan. The housing loan was specially developed in BGN: its minimum amount is BGN 10,000, and the maximum amount is BGN 400,000. Repayment can be spread over 30 years with interest rates starting at 3.10% for fixed rate loans spanning up to 3 years and rising to an incredibly low level of just 3.30% for longer terms ranging from Five years! In addition, if you transfer your salary directly to the account of this bank, you will get even lower interest, so start now; it will make sense both money and time! Our home loan with a variable interest rate is available in Bulgarian Lev (BGN) and Euro (EUR). The minimum amount of the loan is 10,000 BGN or 5,000 EUR and reaches up to 400,000 BGN or 200,000 EUR. In addition, with a salary transfer to our bank account, you will be entitled to an even lower interest rate of 3.95% compared to 4.20% without it! Plus, you can get this fantastic offer with repayment terms of up to 30 years!
With both loan types, you can enjoy a 12-month interest-only grace period. They also offer 85% financing of the property value, making it easier for people to cover their expenses.
The bank is proud to introduce its exclusive consumer mortgage loan, tailored for all your home-related projects. If the borrower’s salary is transferred to the bank, you can enjoy an interest rate of 3.95% fixed for one year and variable thereafter; if not, it will be set at 4.20%. This is available in BGN or EUR currency—minimum BGN 1,000/EUR 500 and maximum BGN 200,000/EUR 100,000 available! Depending on your needs, you can choose up to 20 years as the repayment term.
6. CDB Bank
The seventh largest bank in Bulgaria proudly presents two options for a mortgage loan; the “Home for you” option and a suitable solution for current needs.
The “Home for you” mortgage loan is the perfect choice if you want to buy a property or refinance your current loan. Provides up to BGN 450,000 and their equivalent in euros with a 30-year repayment term. The best part? You can choose between two currencies: Bulgarian Lev (BGN) or Euro (EUR). The interest rate on the loan can vary from 2.60% to 3.30% depending on various factors such as the level of your insurance income, whether you are a customer of ZAD Armeets or POAD TsKB Sila and whether your profession is in one of the developing sectors such as government, municipal banking, insurance, IT or similar industries. However, if there is any restriction on the loan collateral, it requires an interest rate of 5%. The currency remains unchanged regardless. In order to meet the requirements for a loan, the borrower must deposit his income into an account at the Central Bank AD and have an open-ended employment contract.
If you need financing for repairs, furnishings, educational expenses, special occasions or medical expenses – and even if it is a question of buying a property or refinancing a loan from another bank – this mortgage loan is the perfect solution. In addition, repayment terms are up to 25 years! This loan is offered in Bulgarian leva (BGN) and Euro (EUR), and the maximum amount that the client can borrow is BGN 300,000 or their equivalent in EUR. The interest rate on this loan varies between 3.30% and 2.60%, except where there are restrictions imposed by the security provided, in which case it becomes 5%. To qualify for the loan, you must receive your salary at Central Bank AD and have an open-ended employment contract. Financing reaches up to 85% of the value of the property; as collateral, we require a completed residential building ready for occupancy.
7. FIB (First Investment Bank)
Bulgarian citizens can now take advantage of two fantastic mortgage options from the fifth largest bank in Bulgaria: “Right to choose” home loan and mortgage overdraft. Individuals have access to up to 85% of the market value of their property with unlimited borrowing capacity, making them manageable to secure funding. And if that’s not enough, borrowers also have the option to choose whether they want to receive their loans in Bulgarian levs or Euro currencies – ensuring
unparalleled flexibility in managing your personal finances! In addition, customers are exempted from paying any loan payment fees or legal services such as origination and management. They can also enjoy generous repayment terms of up to 35 years!
Get access to real estate financing with a minimum 3% floating rate: purchase of other residential or administrative buildings, regulated landed properties and agricultural land up to the 6th category. At FIB, borrowers who meet the Bank’s requirements and meet certain conditions are entitled to receive the specified minimum interest rates under their loan agreement. These conditions include not being in arrears for more than 30 days, receiving income from a current account at the FIB, having a credit card from them that is equipped with a subscription for SMS notification and using electronic banking services.
After the first five years of your contract and every six years thereafter, the Bank offers up to twelve months in which neither principal nor loan installments have to be paid. This relief is only valid if the interest rate increases by 0.5 points or more during the entire term of the credit agreement.
Whether you need it for the same purpose as a home loan, leva or euros, an unlimited amount – a mortgage overdraft is the answer. It offers a repayment term of up to 35 years and a minimum 1 year contract with a maximum of 5 years from the date of conclusion. After this time frame, your monthly payments will be calculated based on the set repayment plan; in addition, you are eligible for loans up to 85% of their market value!
The interest rate on this loan is not fixed, but will vary with a minimum starting point of 3%. The exact requirements specified for the housing loan also apply here.
Similarities and differences
After the first year of your loan term, banks no longer require you to pay an early repayment fee. This applies to all credit products.
All banks require a current account with them in order to take advantage of credit products that can be used to make loan repayments. Some even make it a condition that the applicant’s salary should be credited to an account owned by their bank for further loan processing. Unicredit and Post Bank require consumer life insurance, while Unicredit, DSK Bank and UBB require property insurance of the collateral.
