Mortgage for foreigners in Bulgaria

You don’t have to be a Bulgarian citizen to get a mortgage from a bank in Bulgaria to finance your property purchase.
The applicable mortgage program depends on the type of residence in the country.

 

 

Permanent and non-permanent resident aliens

Both permanent and non-permanent resident aliens can obtain mortgages in Bulgaria, pretty much like Bulgarian citizens. The mortgage application process as well as the interest levels and conditions will be very similar to that of BG citizens.

The standard parameters are as follows:

• Loan amount: up to 85% of the appraisal value of the real estate provided as collateral;
• Purpose: financing purchase, construction, repair and reconstruction of housing property;
• Maximum repayment term: up to 35 years.

The documentation requirements depend on the borrower’s status, but generally these are the main documents that will be required for the applicant/co-applicant:

• Loan application form;
• Labor contract/ Tax declaration;
• Salary certificate;
• Copy of ID card;
• Marital status certificate;
• Certificate from National Income Agency for tax obligations;
• Preliminary contract with the seller of the property (or just a draft for the 1^st stage);
• Appraisal of the property;
• Property documents (usually it’s a seller’s commitment).

If you’re a non-permanent resident alien, you have to live in Bulgaria for more than a year. Lenders must verify that you’ll be able to live and work in the country for at least few years. If your permit is going to expire within a year, your lender will evaluate your likelihood of remaining in the country and decide accordingly.

Non-resident, non-citizens have Options

It’s harder for borrowers outside Bulgaria to get a mortgage in the country, however it is not impossible. They are riskier for lenders, so they carry higher interest rates. Borrowers also have to make much larger down payments — 30 to 40 percent. Bulgarian co-applicant engaged in the mortgage will be considered as an advantage and sometimes it could be critical.
The documentation requirements depend on the borrower’s status, but generally these are the main documents that will be required for the applicant/co-applicant:

• Loan application form;
• Labor contract/ Tax declaration;
• Salary certificate;
• Account statement for the last six months evidencing the declared incomes;
• Copy of ID card/passport;
• Marital status documents;
• Credit history documents;
• Preliminary contract with the seller of the property (or just a draft for the 1^st stage);
• Appraisal of the property;
• Property documents (usually it’s a seller’s commitment).

What Are Today’s Mortgage Rates?

Current mortgage rates for most foreign nationals are very good, because they don’t pay more than BG citizens. Most banks offer flexible interest rates, based on a market deposit indexes, calculated by the Bulgarian National Bank, plus fixed addition.

The figure below presents statistics by the Bulgarian National Bank about average mortgage interest rates for Y2018.

 

 

 

 

 

 

 

 

 

The individual interest levels depend on the borrower’s financial profile and are subject of negotiations with the banks.

How can we help you?

Sanuk is a loan advisor that has a partnership with most of the banks in Bulgaria based on a contract. The company is the first licensed mortgage broker by the Bulgarian National Bank. Sanuk offers consulting services to foreign clients, helps them deal with lenders and get the best conditions. There is no fee for the end user (borrower), since Sanuk commission is paid by the bank when the loan is settled.
Sanuk consultants guide you through the whole mortgage process and help you on every step. They scan dozens of offers for you and select the best options within 3 – 5 working days, based on your specific requirements and profile. Then clearly explain the fees, costs and conditions associated with every option.
If you want to contact us you could fill the online form or just call us.