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Mortgage

MORTGAGE LOAN FOR NON LOCAL INDIVIDUAL

LOAN PARAMETERS

PURPOSE OF THE LOAN: Purchase of  residential real estates in Bulgaria.

  • Foreign citizens may apply for financing the purchase of  real estates offered for sale only by a certain List of investment/ development companies financed by the bank

AVAILABLE TO:      

  • Bulgarian citizens having permanent labor contract with employer abroad.
  • Foreign citizens with permanent income abroad.
  • Age requirement for the loan applicant : Age at loan final maturity date – 60 years for women, 65 years for men.
  • The monthly installment (due principal and accrued interest) of the loan should not exceed 30% of the net monthly income of the loan applicant.

CURRENCY OF THE LOAN: BGN, EUR

MAXIMUM TENOR OF THE LOAN: 

  • 20 years for foreign citizens
  • 25 years for Bulgarian citizens

LOAN DISBURSEMENT:

  • Disbursement period: up to 3 months since the loan contract is signed
  • Type of disbursement: One-off or following an individual disbursement plan

REPAYMENT TYPES:

  • Equal monthly installments (annuity loan)
  • Decreasing monthly installments

COLLATERAL:

  • Mortgage of the purchased real estate at minimum accomplished stage of “Permission for utilization ” status (with issued Act 16 according to the Bulgarian Law).
  • Blocked deposit  of the customer with the Bank equal to 6 monthly installments (principal and interests) for foreign citizens.
  • Blocked deposit of the customer with the Bank, equal to 3 monthly installments (principal and interests) for Bulgarian citizens 
  • Every year the amount of the deposit can be reconsidered upon initiative of the client .
  • Required insurance of the purchased real estate – the client may subscribe to the favourable conditions of Generali insurance administered by the bank

LOAN AMOUNT:

  • Up to 70% of the market appraisal of the real estate accepted as collateral by the bank. The market appraisal is provided by licensed appraisers.

 LOAN SPECIFIC CONDITIONS:  

  • Establishment of borrower’s legal representative in Bulgaria – an agreement for power of attorney between the borrower and a local real estate/ construction company must be concluded.
  • In exceptional cases the borrower could be represented by an individual (via power of attorney)  approved by the Bank.      

NECESSARY DOCUMENT:

  1. Application form.
  2. Letter of attorney - Certified by notary (in case of foreign notary an apostille is required).
  3. ID documents
  4. Last 3 months salary statement from employer (last 3 months salary slips) or statement about other source of income – this income is expected to be received during the loan contract duration - Original
  5. Statements of bank  accounts for the last year or at least 6 month period
  6. Documents about other individual investments (upon client initiative) in pension funds, mutual funds, government  securities and other securities - apostille .
  7. Preliminary contract/contract for real estate purchase
  8. Tax declaration for the last year
  9. Licensed market appraisal of the real estate
  10. Family status document
  11. Credit history