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Terms & Fees
Fine tuning the purchasing details |
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| The amount of the mortgage loan is defined by several factors: |
- the agreed purchase price;
- the bank’s evaluation of the property;
- the maximum mortgage amount set by the bank;
- the Loan to Value (LTV varies from 65% to 90% ), which is the ratio of the loan that will finance the purchase to the market value of the property. The market value is different to actual purchase price of the property. It is defined by the bank’s evaluation of the property performed by an expert appraiser and it is usually lower than the purchase price.
- the borrower’s creditworthiness (all existing liabilities including any mortgage/ rent payments, personal and bank loans or divorce/ child support payments together with the proposed Bulgarian mortgage payments must not exceed 50 % of the net monthly income)
| Different types of mortgage plans for various purposes are offered in Bulgaria: |
- to buy new property,
- to build houses or second/ holiday homes,
- to finance finishing or refurbishing works,
- to refinance/ secure other debts (other mortgages with different banks)
- Mortgages with fixed rate over a certain period of time
- Mortgages based on standard bank variable rates;
- Interest only mortgages (for over a certain period of time)
- Repayment and Interest mortgages
| Currency |
Euro |
| Loan term |
the maximum term for repaying the loan varies between 15 and 30 years; |
| Loan to Value |
65% to 90% of the purchase price (depends on bank’s evaluation of property and applicant’s creditworthiness) |
| Repayment type |
Interest only (over a certain period of time) and Repayment and Interest |
| Interest Rate |
6.2 – 9.5 % |
| Insurance |
Building & contents about 200 EUR per year |
| Mortgage |
Arrangement and application fees - about 1 – 1.5 % of the loan amount |
| Notary |
Registration costs - about 3% |
| Legal costs |
about 1% |
| Applicant’s age |
not more than 70 years old at the end of the repayment term |
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