Mortgage Loans

Since January 2007 non Bulgarian citizens are allowed to mortgage Bulgarian properties, except in case if it is land only. The maximum amount of the loan is defined by overall condition of the house. The first step for applying a mortgage loan is independent expert evaluation. The experts will evaluate the house, and then you could get a mortgage for not more than 65% of the evaluated cost of the property (the rest 35% you should finance by yourself). Usually the evaluated cost is very close to the market price of the property. The average interest rate is 8%.

One of the conditions of the mortgage loan is that the mortgage monthly payment should be not more than 20% of your monthly income. So, if you earn 4,000 EUR per month, the monthly payment to the bank must be not more than 800 EUR.

The documents you will need in order to apply for a mortgage load are:

A. Official statement for your regular income:

- Pay-check/pay-slip
- Bank statement from your personal bank account for the last six months
- Bank reference (recommended, but not obligatory)
- Official letter from your employer – it must indicate that you have received the total sum of ... for the last six months and you have been employed with monthly/weekly salary of the amount of ... per month/week. The letter must be stamped/sealed by your employer stamp/seal.

B. Pension contact (recommended, but not obligatory) 3. Proof of address – it may be copy of your driving license; bills for electricity, water, landline telephone, gas, etc.

C. Copy of your passport