CHF
EUR
GBP
USDHOUSING LOANS
(1. Loans for purchase, repair, improvement of real properties secured by mortgage, 2. Loan, secured by surety and/or pledge of movable objects)
1. Purpose of the loan:
- acquisition of real property;
- performance of repair and finishing works, re-engineering, construction and erection works after the “cold shell“ stage, if secured by mortgage;
2. Eligibility requirements in regard to borrowers:
- Borrowers must be full-aged legally capable individuals, permanently residing in the Republic of Bulgaria, up to 63 years of age for men and up to 60 years of age for women at the time of expiry of the term of the loan applied for.
- Persons, working under indefinite term employment agreements, who are not in a probation period or individuals, deriving their income from economic activity and other activities under service contracts – as sole traders; notaries public; persons in private medical practice; persons practicing liberal professions; persons performing against compensation management and control; craftsperson’s’ activities and other services, based on own labour.
- Regular and stable incomes, which applicants must be able to prove.
3. Amount:
- loans for purchase, repair, improvement of real properties secured by mortgage – up to 80 % of the market value of new housing units in solid buildings and in monolithic cast concrete buildings and up to 75% of the market value of old apartments, but not exceeding EUR 100,000. If the valuation for tax purposes of the property would exceed 120% of the value of the loan applied for, no expert appraisal shall be required;
- loans, secured by surety and/or pledge of movable objects – up to BGN 10,000 or the equivalent thereof in EUR.
4. Loan term:
- loans for purchase, repair, and improvement of real properties secured by mortgage – up to 120 months.
- loans, secured by surety and/or pledge of movable objects – up to 60 months.
5. Loan currency: - BGN and EUR.
6. Repayment:
- the loan must be repaid in equal monthly instalments, including interest and principal or
- In equal monthly instalments for principal and decreasing interest;
- negotiation of a grace period is an option;
available at the Bank’s discretion and depending on the clients’ wishes.
Interest on the loan shall be charged applying a base year of 365 / 360 days.
7. Annual interest rate:
- loans for purchase, repair, improvement of real properties secured by mortgage – BIR + 6.02% on loans in BGN and BIR + 4.72% on loans in EUR.
- loans, secured by surety and/or pledge of movable objects – BIR + 9.02% on loans in BGN and BIR + 8.02% on loans in EUR.
8. Late payment penalty surcharge – 10%.
9. Fees and commissions: according to the rates of the Bank Tariff, applicable to individuals.
10. Other terms:
- acceptance of direct debit from all accounts of the borrower;
- insurance – property insurance in favour of the Bank (at the borrower’s expense) for all relevant insured risks, covering the purchase price.
11. Early repayment 0% in case of repayment by own funds and 5% in case of refinancing.
12. Security: First legal charge over the property purchased and/or first legal charge over another real property, owned by the borrower or by third persons, in regard to which no other rights, opposable in regard to the Bank must be registered, insured in favour of the Bank for the loan term by an insurer, acceptable to the Bank;
In cases of loans, secured by surety and/or pledge of movable objects - surety by up to 3 natural or legal persons, following an analysis of their credit standing, including in connection with the number of loans, where they are borrowers and/or standing surety; pledge of movable objects (insured in favour of the Bank), receivables, securities, etc.
13. Grace period:
- up to 12 months for construction and finishing works and purchase of properties under construction;
- up to 6 months for purchase of finished property or property at “cold shell” stage.
- no grace period shall be available for loans, secured by surety and/or pledge of movable objects.