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Mortgages

BG Estates Worldwide is one of the pioneers in offering mortgage solutions to our customers. We work with the largest and most reliable international banks offering property financing options. Our team of financial experts can negotiate preferential terms for you and are always on hand to give you advice and to be of help. We will assist you throughout the entire process, guiding you through each step and providing you with useful information whenever you need it.

If you are a EU or Russian national and you earn a total income (proven by a pay slip or a bank statement) of at least 20,000 euros and you have a good credit history then you would normally qualify for a mortgage loan in Bulgaria. The interest rates are typically about 7%. The mortgage term can vary from 5 to 20 years and the maximum amount you can borrow is 200 000 euro. BG Estates Worldwide will help you get a mortgage, which is tailored to best suit your specific needs. The bank will require proof of earnings, an employer's reference and bank statements.

Mortgage features
  • Maximum Loan to Property Value: 80% - the maximum amount the bank can lend
  • Loan Amount: from 5 000 to 200 000 Euro - the mortgage loan is 5 000 Euro at the lowest and 200 000 Euro on the highest end.
  • Loan Terms: from 5 to 25 years - the mortgage can be from 5 to 25 years
  • Age limits - applicants must be older than 21 years when the mortgage is issued and not older than 65 years on loan expiration.
  • Repayment schedule - the repayment shall be made in equal instalments
  • Loan currency: Euro -The mortgage is in Euro
  • Management fee 1.4% - management fee is payable when the mortgage is completed
  • Interest rate: 7% fixed - the interest rate is 7% fixed for the whole loan term
  • Bank account: Mandatory - applicants must have a bank account with the lender. Monthly service of the account - 0.65 euro
  • Insurance: Mandatory - the property must be insured against Fire, Flood and Earthquake
We can now offer our Mortgage Program for Russian Federation nationals. Under this program the bank provides long-term loans, which are:
  • extended to legal entities and individuals, at the same terms, in EUR and USD.
  • for business / purchasing equipment and machinery or for work capital /
  • for refinancing existing loans or other liabilities – from 1 to 10 years
  • for purchasing real estate – the loans are up to 25 years
  • ranging from 5 000 $ or EUR to 75 % of the appraised market value.

The loans can be repaid by either monthly annuity instalments or by equal monthly principal instalments.


FAQ
Below is a list of the most commonly asked questions on the financing options for purchase of real estate and their answers.

1. Can I get a mortgage loan for buying a property in Bulgaria?
Now it is possible for foreigners to buy Bulgarian properties with mortgages issued by Bulgarian banks. BG Estates Worldwide is one of the pioneers in offering this service to its customers. We work with the largest and most reliable Bulgarian banks offering that service. We will assist you throughout the entire process, guiding you through each step and providing you with useful information whenever you need it.

2. Who can apply for a loan?
Applicants must above 21 years when the mortgage is issued and not older than 65 years on loan expiration.

3. How much can I borrow from the bank?
The mortgage can be up to 80% of the expert's property evaluation and not more than 200 000 euros.

4. Can I get additional credit besides the mortgage?
Yes, you can use additional funding if you service you mortgage regularly for at least 6 months. Your total obligation to the bank cannot exceed 300 000 euro.

5. What kind of collateral can I use?
The collateral may be an apartment, a villa or a house at the stage of completed rough construction and beyond. Additional bank deposit may also be used if the property evaluation is not enough.

6. Is there a grace period?
Yes, you can use a grace period of up to 12 months.

7. What is the interest rate for mortgages in Bulgaria?
The interest rate for mortgages varies from 6% to 9%. The mortgage rate for foreigners is fixed at 7%.

8. For how long can I borrow the money?
You can borrow the money for 5 to 25 years.

9. Can I repay the credit earlier and do I pay any fee in this case?
Yes, you can prepay the credit earlier, but you'll be charged prepayment fee, which is 5% of the principal. So if you want to prepay 10 000 euro, then you need to transfer your regular instalment plus 10 000 euro plus 500 euro prepayment fee.
Note: You can do the prepayment only on your payment date.

10. What kind of documents I need to prepare?
All you need to prepare is a copy of your passport and a bank statement or any other document, certifying your income.

11. How long does it take to get a mortgage?
The bank will give you an answer within 5 working days after submitting all necessary documents and 5 further days for notary transfers and mortgage release.

12. How do I service my credit?
You need to open a bank account with the lending bank and you will service the credit through it. You are obliged to ensure enough funds for paying your regular instalment and monthly service fee for the account 2 days before your payment due date.

13. Do I need to authorize a lawyer to take care of the mortgage?
The bank requires each foreign borrower to have a legal representative in Bulgaria. Specific power of attorney should be sealed. BG Estates can recommend 2 attorneys at law who are approved by the bank and can be your legal representatives.

14. Do I have to insure the property and myself?
The property insurance against earthquake, flood and fire is obligatory. Life insurance is not.

15. What fees do I pay?
You have to pay 600 euro application fee, which is non refundable. The engagement fee is 1% of the credit, due at the time when the credit is approved but not disbursed yet. The management fee for the 1st year is 1,4 % of the loan amount and 48 euro for each following year. Note: The bank keeps its right to change the credit terms and conditions.

16. Are there any other fees?
The borrower has to pay all state and local taxes and fees for the notary transfer.

If you haven't found the answer of your question, don't hesitate to contact us at mortgages@bgestates.com




Structure of the Product - Financial lease: *

Description:
“Asset Based” Financial lease with closed end /VAT paid in advance/
Assets: Properties that have Usage permit (act 16) or at least in stage of construction“completion of roof” (act 14).
Coastal properties, houses, apartments, offices situated in areas at distance:
  • Not more than 30km away from the big cities (with population of more than 50 000 people);
  • Not more than 30 km away from the Black sea coast;
  • Not more than 30 km away from mountains or other resorts.
Excluded: Plots as separate asset; properties in industrial areas or areas with detected ecological and etc. problems; properties encumbered with burdens, plan-off properties.
Leaseholder: Non-resident individuals or legal persons registered in Bulgaria by non-resident individuals.
Duration: Up to 15 years.
Self participation: At least 30% of the purchase price includes VAT – for properties with Usage permit ( Act 16);
At least 40% of the purchase price include VAT for properties at stage of construction “completion of roof”
Grace period: Up to 12 months for plan-off properties;
No Grace period for properties with Usage permit (act 16).
Price formation: Interest cost: 3 Euribor + 4.50%;
Finance fee: 1.5%, a single time payment when signing the contract;
Administrative tax: 50 Euro, a single time payment;
Fee for fulfilling payment before the term set: 4%;
Fee for changing the terms of the financial lease: 1.5%.
Collateral: Ownership upon the object of the lease - – Min. 142.86%, WCV 100% (promissory note is not required).
Additional collateral: Deposit at the rate of 3 monthly payment instalments to an account with the “Raiffaisen Leasing” BG. If the amount of the deposit falls under 50% of the stipulated amount, RLBG has the right to terminate the lease agreement. If the obligations set in the contract are accomplished, so “Raiffaisen Leasing” BG will refund the amount of the deposit in the end of the term of the lease.
Insurances: Insurance “Live”on the behalf of “Raiffaisen Leasing” BG;
Insurance “Property” on the behalf of “Raiffaisen Leasing” BG;
Insurer – approved by “Raiffaisen Leasing” BG, broker – Raiffaisen insurance broker.
Other terms: 1. The market value of the real estate prepared by Raiffaisen Service.
2. Three party agreement for delegation of the Leaseholder interest by a native(Bulgarian) attorney;
3. Age of the Leaseholder( for individuals)- from 21 to 63 years old (including the term of the lease agreement);
4. All the additional charges, including the Notary fees, taxes,
inhabited property duty and etc are paid by the Leaseholder;
5. Preliminary approval of the lease contracts by “Raiffaisen Leasing” BG.
6. Pledge of the previous and future takings from rent on the behalf of “Raiffaisen Leasing” BG. If the Leaseholder does not pay the monthly payment installment “Raiffaisen Leasing” BG reserves the right upon the takings from rents of the property. The Leaseholder has the obligation to inform “Raiffaisen Leasing” BG for any agreement obligations connected with the property;
7. In case the Leaseholder does not accomplish his obligation according to the contract, “Raiffaisen Leasing” BG has the right to terminate the lease contracts, signed from by the Leaseholder;
8. 500 000 Euro is the maximum amount of the financial lease.

The quality of the construction, as well as the attractive location of the property are going to be a determinative conditions in the process of approving the

Main priorities:
  • Simplified procedure regarding the required documents:
- for individuals – only ID ( passport)
- for legal persons – the standard package registration documents
- documents related to the property
  • Short terms for TTY/ TTC.
  • It is not required proof of the credit history of the non-residential candidate for the financial lease.
  • Promissory note from the non-residential candidate is not required.
  • The financial lease is a great opportunity for the non- resident individuals to acquire the land of the property without the additional costs for setting a company in Bulgaria.
* This product is available on the territory of Bulgaria and the European Union.


Mortgage Loan

Bank Credit amount Loan term Percentage for Collateral Annual Interest Rate in Euro
DSK Bank There is not a maximum amount Up to 30 years Up to 90 % of the property value Mortgage of the property, subject of the Credit or mortgage of another property
6.15% implementation of the “DSK-Uiut” conditions
Societe Generale Expresbank There is not a maximum amount Up to 25 years Up to 80 % of the property value Mortgage and Insurance of the property 5.90 % up to 10 years
6.20 % up to 15 years
6.40 % up to 20 years
6.65 % up to 25 years
Unicredit BulBank Bank- partner There is not a maximum amount Up to 25 years Up to 80 % of the property value Mortgage of the property 6.27%-6.44%
First Investment Bank Bank- partner There is not a maximum amount 30 years Up to 90 % of the property value Mortgage of the property 0 % for the first year,7.5 % for the rest of the period
HVB Bank Biohim Hebrosbank There is not a maximum amount Up to 20 years - in leva, up to 25 years – in Euro Up to 80 % of the property value Mortgage of the property 6.75%
CCBANK Up to 500 000 leva Up to 25 years Up to 100 % of the property value Mortgage 7.5 %
Bulgarian Postbank Bank- partner There is not a maximum amount 35 years (minimum for 5 years) Up to 100 % of the property value Mortgage of the property  1.50 % for the first year, 7.40 % for the rest of the period
 IBank There is not a maximum amount Up to 30 years Up to 70 % of the property value First mortgage of the property 9 %
 Raiffeisenbank There is not a maximum amount Up to 25 years Up to 90 % of the property value Mortgage of the property 1.50 % for the first year, 7.10 % for the rest of the period
UBB Up to 500 000 leva Up to 30 years Up to 80 % of the property value Mortgage of the property 6.25%
Tokuda Bank Up to 100 000 leva Up to 20 years Up to 70 % of the property value Mortgage 8.90%
EIBANK There is not a maximum amount Up to 30 years Up to 90 % of the property value Mortgage of the property Up to 10 years- 6.45 %
11-12 years – 6.60 %
21 – 30 years – 6.75 %
DZI Bank There is not a maximum amount 35 years (minimum 5 years) Up to 100 % of the property value Mortgage of the property 1.5 % for the first year, 7.40 % for the rest of the period
Piraeus Bank Bank- partner There is not a maximum amount Up to 35 years Up to 90 % of the property value Mortgage of the property 0 % for the first 6 months, 6.40 % for the rest of the period
Allianz Bank Bank- partner Up to 150 000 Euro Up to 20 years Up to 80 % of the property value Mortgage of the property 6.90 %
Municipal Bank There is not a maximum amount Up to 20 years – in leva, Up to 25 years – in Euro Up to 80 % of the property value Mortgage of the property 10.23 %
International Asset Bank Up to 200 000 leva Up to 10 years Up to 80 % of the property value Mortgage 11.14 %
Emporiki Bank Up to 200 000 leva Up to 25 years Up to 70 % of the property value Mortgage 3.20 % for the first year, 3 months EURIBOR +4.50%
MKB Unionbank There is not a maximum amount Up to 25 years Up to 80 % of the property value Mortgage 6.45%-6.95%
BACB (Bulgarian-American Credit Bank) There is not a maximum amount Up to 20 years from 75 % to 100 % of the property value Mortgage The annual interest rate is determined individually for each client, after the following criteria are taken into account: value of the property mortgaged, annual income of the applicant and the length of the mortgage.
ALPHA BANK 100 000 Euro Up to 20 years Up to 70 % of the property value First mortgage of the property 3.90 % for the first year, 3 months EURIBOR
TEXIMBANK There is not a maximum amount Up to 15 years Up to 70 % of the property value Mortgage of the property 6.50 % for the first year, 3 months EURIBOR + for the rest of the period
D Commerce Bank Up to 100 000 leva Up to 20 years Up to 70 % of the property value (for Solid Masonry Constructions) and 60 % of the property value (for Concrete Masonry Constructions) Mortgage 8 %

 

 


Housing loans of DSK bank


Product specification:

DSK BANK CONDITIONS FOR GRANTING HOUSING LOANS TO PHYSICAL PERSONS, BULGARIAN AND FOREIGN INDIVIDUALS
Loan purpose Apartments, houses, villas and garages built by monolithic/solid construction system, entirely developed and provided with use permit or at rough construction stage.
Loan parameters 1.1. For applicants certifying credit liabilities by a credit report from a credit bureau or credit registry:
  ) Own participation compared to the deal price – 20 %.
  b) Maximum admissible loan amount towards the discounted market valuation of the collateral – up to 80 %.
  c) Minimum repayment term – 5 years, whereas the maximum repayment term is up to 25 years.
  d) Requirement for credit history for utilizing a second loan – minimum 3 months as of the date of approval of the first loan.
  1.2. For loan applicants not certifying credit liabilities by a credit report from a credit bureau or credit registry:
  ) Own participation compared to the deal price - 30 %.
  b) Maximum admissible loan amount towards the discounted market valuation of the collateral – up to 70 %.
  c) Minimum repayment term – 3 years whereas the maximum repayment term is up to 20 years.
  d) Requirement for credit history for utilizing a second loan – minimum 6 months as of the date of approval of the first loan.
Minimum credit score if a credit report from a credit bureau is provided 1.1 Minimum credit score if a credit report from a credit bureau is provided:
  a) Minimum 450 – if the credit report is provided by UK Equifax Credit Bureau.
  b) Minimum EUR 30 000 gross annual income.
  1.2 For loan applicants – married couples:
  In case each of them falls into different categories in respect of required minimum gross annual income, the higher amount of income is required. In such cases the total family income of the loan applicants is considered gross annual income.
  1.3 For loan applicants – co-debtors:
  Who will acquire a real estate together, their total income is considered gross annual income.
Loan currency EUR, USD, BGN
Grace periods for loan principal repayment Up to 12 months, at applicant’s request.
Utilization term for loans utilized by stages Up to 12 months.
Loan repayment By equal monthly installments or decreasing monthly installments including equal payment for principal and the respective monthly interest.
Interest rate 7 % - irrespective of the loan currency.
Fee for review of loan application, property evaluation and commitment a) For loan utilized by stages for purchase of a real estate under construction with intended purpose - final completion and obtaining of Use Permit - EUR 130.
  b) For loan utilized one-off for purchase of real estates entirely developed, for which Use Permit is obtained as well as for real estates at rough construction stage, i.e. with certified roof level – EUR 100.
Management fee 1,00%
Monthly fee for maintenance and operative servicing of a current account EUR 0,65
Partial or full prepayment fee 5 % on the prepaid amount for the first three years and 3% on the prepaid amount after the third year.
* The loan agreement shall be concluded in Bulgaria and the applicable law therein is Bulgarian law.
 
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