Mortgages in Bulgaria: what banks actually lend
Bulgarian mortgage rates have been among the lowest in the EU for several years. The catch is not the rate — it is the loan-to-value and the paperwork if you are not resident.
Where rates sit
Bulgarian housing loans have run in the low single digits for years, well under the euro-area average, because domestic banks are funded by a very large deposit base. Most products are floating, priced off the bank's own base or a reference index plus a margin; fixed periods of one to five years are widely offered and then revert to floating. With euro adoption the pricing reference has moved towards euro-area benchmarks — ask each bank precisely which index your margin sits on and what happens at reset.
How much banks lend
| Borrower | Maximum LTV | Term | Notes |
|---|---|---|---|
| Bulgarian resident, salaried | 80–85% | up to 30–35 years | Best pricing; income must be declared |
| EU national, resident in Bulgaria | 80% | up to 30 years | Treated much like a local borrower |
| Non-resident foreigner | 50–70% | up to 20–25 years | Income proof in a convertible currency; some banks decline entirely |
| Off-plan purchase | up to 60–70% | — | Many banks only lend after Act 14; some only after Act 16 |
Debt service is usually capped so that total loan repayments stay under roughly 50% of net household income, with a floor for living costs.
The documents
- Passport or ID and Bulgarian tax number
- Employment certificate and the last 6–12 months of payslips, or two years of accounts for the self-employed
- Bank statements showing the salary credits
- A credit report from your home country if you are non-resident (some banks accept a declaration plus statements)
- The preliminary contract and the seller's title documents
- A valuation by a bank-approved surveyor
Approval takes one to three weeks for a clean domestic file, three to six weeks for a non-resident. Foreign-currency income is usually discounted by 10–20% in the affordability calculation.
Fixed or floating?
Most Bulgarian borrowers take the floating product because the margin is lower and early repayment is cheap: after the first year, partial or full prepayment of an owner-occupied loan carries no penalty in most contracts, and within the first year it is capped at 1%. If you expect to repay early — from a property sale at home, for instance — that flexibility is worth more than a fixed rate.
What to compare, beyond the headline rate
- The APR (ГПР), which includes fees, insurance and account charges
- The reset mechanism — which index, what margin, how often
- Compulsory insurance, and whether you may use your own insurer
- Account-keeping requirements — many "promotional" rates require salary crediting to that bank
- Early repayment terms in writing, not in the branch's summary
Frequently asked questions
Can a foreigner get a mortgage in Bulgaria?
Yes, though non-residents are typically limited to 50–70% loan-to-value over a shorter term, and must document income in a convertible currency. EU nationals resident in Bulgaria are treated much like local borrowers.
What deposit do I need to buy in Sofia?
Residents usually need 15–20% of the price, non-residents 30–50%. Remember that transaction costs of 4–5.5% sit on top of the deposit and cannot be financed.
How long does mortgage approval take in Bulgaria?
One to three weeks for a resident with a clean file; three to six weeks for a non-resident, mostly because of document translation and income verification.
Can I repay a Bulgarian mortgage early?
Usually yes. For owner-occupied loans, prepayment after the first twelve months is generally free of penalty, and capped at 1% within the first year. Confirm the clause in your contract.
Will a bank lend on an off-plan apartment?
Some will, typically after Act 14 (structural completion) and at a lower loan-to-value. Many require Act 16 — the occupancy permit — before releasing funds.
Written by the Apartment in Sofia editorial team and reviewed against the market sample of 16 September 2026. General information, not legal or tax advice — take advice on your own circumstances.
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