Mortgages A number of mortgage products are currently available to foreigners willing to purchase Bulgarian properties.

Housing loan for foreigners

Purpose
- Purchase of fully completed real estates (with Permission for use)
- Purchase of real estates under “rough construction” stage, with a certified “rough construction” level

Рparameters for housing loans
Currency: BGN, EUR

Loan amount:
- Min: EUR 5000 (or the equivalent in BGN)
- Max: unlimited

Percentage of financing:
– up to 80% of the market value of the real estate if the building is completed (with Permission for use);
- up to 70% of the market value of the real estate if the building is on stage “rough construction”, with a certified “rough construction” level

Loan term: 3 – 25 years

Interest rate:
6.85% p.a. for loans in EUR:
- for the first year: fixed interest rate
- for the remaining loan period: COF + 1.45%

7.25% p.a. for loans in BGN:
- for the first year: fixed interest rate
- for the remaining loan period: COF + 1.40%


The interest rates are formed on the basis of COF (Cost of funds) of the Bank plus a fixed addition. COF of Raiffeisenbank (Bulgaria) EAD valid for February 2008: in BGN - 6.25%; in EUR - 5.4%.

Fees and commissions
Pre-approval fee - EUR 20
Application processing fee - EUR 50
Property Valuation fee - EUR 150
Completion fee - 1.5% on the granted loan amount
Early pre-payment fee:
- 4% of the amount of the prepaid principal about loan prepayment in first 3 years
- 2% of the amount of the prepaid principal about loan prepayment in the remaining period
Re-negotiation fee - 1.5% of the remaining loan amount
Annual management fee - 0.25% per annum on the outstanding amount
Engagement fee - 0.5% on the permitted but not yet disbursed loan amount for the term until the disbursement; on annual basis
Current account maintenance fee - EUR 1 – monthly

Collateral - first preferential mortgage on the purchased real estate in Bulgaria

Requirements the borrowers

Citizenship: Active UK and Ireland citizens
Age: 21 – 63 years of age (the loan should be repaid before the customer reaches 63 years of age)
Debt to income (DTI) ratio: 60% (The amount of monthly payments for loans, credit cards and leasing instalments should be up to 60% of net monthly individual or family’s income of the borrower))
Remaining income:
- EUR 500 per adult family member
- EUR 250 per child under 18 years old after paying all financial expenses (including 5% of the used amount on revolving products). Children that are 18 or above are also taken into consideration, when their parents provide for their support.

Insurances
• Life insurance – mandatory, at customer’s expense
- Payment Protection Insurance (PPI)
or
- Individual Life insurance policy
• “Real estate” insurance – mandatory, in favour of the Bank, at customer’s expense
-Payment Protection Insurance (PPI)
оr
- Individual “Real estate” Insurance

Repayment method
- annuities (equal monthly instalments, including principal and interest)
- decreasing instalments (equal monthly instalments on the principal and interest paid on the outstanding amount)

Term of loan disbursement:
- up to 3 months from the date of entering into a loan agreement – when buying fully completed real estates
- up to 12 months from the date of entering into a loan agreement – when buying real states on “rough construction” stage

Other conditions:
- a customer should deposit and maintain during the whole loan term the sum of 3 monthly instalments plus the annual management fee plus 3 current account maintenance fees in his/her opened current account with the Bank
- presence of original insurance policies – Life Insurance and Real Estate Insurance.

For more information and arrangements, please contact us.