Mortgage loans for Bulgarian citizens with income from abroad

An investment with perspective

Our proposal

We invite you to take advantage of:

  • Unlimited loan amount and financing of up to 75% of the property’s market value;
  • Special offer when refinancing a mortgage from another bank: Depending on the applicant’s individual credit rating, Fibank will cover the costs of notary and government fees associated with the registration of the mortgage, up to a maximum of €600.

*The special offer for mortgage refinancing applies provided that the loan is granted by First Investment Bank AD, without the involvement of a third party, and the applicant has a high individual credit rating. In the event of full or partial early repayment of the loan before the expiry of 36 months from the date of signing the loan agreement, the Bank is entitled to reimbursement of the expenses it has incurred.

  • The option of additional funding for repairs and improvements to the purchased property as part of the mortgage loan, without the need to provide invoices or supporting documents;
  • Option to apply for pre-approval of financial indicators
  • Pre-approved credit card.

 

With a mortgage loan for Bulgarian citizens with income from abroad, you can:
  • Purchase a property in Bulgaria;
  • Renovate an existing property;
  • Reduce your monthly loan repayments by refinancing your existing debts;
  • Meet other financial needs.


Parameters

Credit card details

Credit applicant:A legally competent natural person, a Bulgarian citizen, who is self-employed or employed on a permanent contract in a country falling within the scope specified below.
Scope:

For applicants with income from:

  • European Union (EU)
  • European Economic Area (EEA)
  • Switzerland
  • USA
  • Canada
  • United Kingdom
Purpose of the loan:
  • to purchase property in Bulgaria
  • to settle existing liabilities (excluding public liabilities to the state and local authorities)
  • for current needs
Loan currency:EUR
Loan amount:No limit
Repayment term:Up to 25 years (300 months)
Repayment method:In equal monthly instalments
Loan-to-value ratio:Up to 75% of the market value of the property
Security:
  • Mortgage on a property that has been put into use, located in a residential, administrative or commercial building.
  • Co-borrower – a natural person with a permanent and current address in Bulgaria
Interest rate:

From 3.40%, variable annual interest rate, calculated on the basis of the SIR* + a margin, for the purchase of residential property, depending on the individual credit rating of each applicant, subject to the following conditions:

Document processing fee:

102.26 EUR / 200 BGN

Loan arrangement fee:

In accordance with the current Tariff of Fees and Commissions of PIB AD.

The fee is payable no later than the first loan repayment instalment.

Property valuation:

The valuation of the property serving as collateral is carried out at the borrower’s expense by an independent property valuer, external to the Bank, who is registered in the register of independent valuers maintained by the Chamber of Independent Valuers, and is confirmed by an internal valuer of the Bank. ( see Tariff –  Licensed asset valuations).

Interest rate characteristics, possible consequences:

The minimum interest rates stated apply to loan applicants who meet the Bank’s requirements, have not been in arrears with the payment of any amount due under the loan for a period exceeding 30 days throughout the term of the loan agreement, and benefit simultaneously from all additional interest rate discounts, as follows:

  • 1.00% upon transfer of the declared income   to a current account with the Bank;
  • 0.25% when using a Visa/MasterCard credit    HYPERLINK "https://www.fibank.bg/bg/chastni-lica/karti/kreditni-karti" ) issued by the bank, with active online banking and at least one utility bill payment registered via online banking;
  • 0.20% when using insurance „ Peace of Mind with FiHealth“ ;
  • 0.10% when using banking package and online banking



The interest payable by the borrower is paid periodically in amounts and on due dates as detailed in the repayment schedule, which forms an integral part of the loan agreement.

Changes to the repayment schedule and the repayment instalment may occur:

  • in the event of a change in the interest rate applicable under the contract as a result of a change in the information declared by the borrower, or upon termination of the use of any of the products and services that were taken into account when determining the initially agreed interest rate;
  • in the event of a change in the SIR to an amount where the sum of the monthly interest due exceeds the agreed repayment instalment under the current repayment schedule;
  • in the event of a partial early repayment of the loan.
Conditions relating to early repayment of the loan:

Should the borrower wish to exercise their right to repay part or all of their obligations under the loan agreement early, they must submit an explicit written request to the Bank, stating the amount to be repaid early and the date on which they wish to make such repayment.

An early repayment fee of 1% of the amounts being repaid early is payable where the loan is repaid before 12 monthly instalments have been paid since the loan was drawn down. If repayment is made after this period, no early repayment fee is payable.

In the event of early partial repayment, one of the following options is available at the borrower’s discretion:

  • reducing the repayment instalment whilst maintaining the loan’s maturity date;
  • reducing the loan repayment period whilst maintaining the repayment instalment;
  • a combination of the two options mentioned above.
Illustrative example:

Example:

- loan amount of €100,000;
- repayment term of 300 months;
- annual interest rate: 3.40% variable annual interest rate, calculated on the basis of the SIR plus a margin.

Based on the specified loan parameters and assuming that the loan is for the purchase of residential property and has been fully drawn down, the loan applicant receives the declared income into an account with the Bank, uses the ‘My Choice Online’ package, holds a credit card, uses active online banking and has registered at least one utility bill payment via online banking, and has taken out ‘Peace of Mind with Fihealth’ insurance, the applicant is required to make a monthly payment on a date of their choosing (payment due date):

  • 300 equal monthly instalments, each amounting to approximately €497.97 / BGN 973.94
  • The total amount due is €158,863.95 / BGN 310,710.88.
  • The APR on the loan is 4.18%.

 

The APR includes an annual credit card fee of €23.01/BGN 45, a one-off document processing fee of €102.26/BGN 200, a loan arrangement fee of €255.65/BGN 500, a monthly fee for the ‘My Choice Online’ banking package of €3.50/BGN 6.85, a fee for a current market valuation report of €9.20/BGN 18, a fee for mortgage discharge of €46.02/BGN 90, as well as an annual premium for “Peace of Mind with FiHealth” insurance of 0.505%.

Possible consequences of non-compliance:

Payments due but not made on time due to insufficient funds in the borrower’s current account with the Bank shall be deemed overdue, and for the period of delay the borrower shall owe a late payment penalty (penalty surcharge) on the amount in arrears. The late payment penalty shall be equal to the statutory interest rate.

In the event that the borrower fails to fulfil any of their obligations under the agreement or the loan is declared fully and prematurely due and payable, the Bank shall be entitled to satisfy its claim from all collateral simultaneously or from only one or several of them in accordance with the procedure provided for by law and in accordance with the type of liability chosen by the borrower and specified in the agreement.

Deadline for accepting the loan offer:

The applicant has 14 (fourteen) days from receipt of the draft loan agreement to decide whether to enter into it.

*SIR – ‘Savings-based interest rate’ is a reference interest rate calculated for each individual currency in accordance with a methodology published by the Bank, used as the basis for calculating the variable interest rate applicable to the loan under the Agreement. The interest rate margin is calculated according to the individual credit rating of each loan applicant. In certain cases, the specific financing terms determined by the Bank may differ from the values stated above.



Additional services related to the loan


"Sell Property and Earn" programme


If you decide to sell your property, which is held as collateral by Fibank against an active mortgage or overdraft, you could win a cash prize of up to €1,000 / BGN 2,000

For more information, visit here

Insurance
Ensure additional security and financial stability for you and your family in the event of unforeseen circumstances. Exclusively for Fibank customers, there is an opportunity to take out loan protection insurance – " Peace of Mind with FiHealth ".
Application
You can apply for a loan from Fibank if:
  • you are a legally competent individual and a Bulgarian citizen;
  • you are employed on a permanent contract or are self-employed in one of the following countries:
  • European Union (EU)
  • European Economic Area (EEA)
  • Switzerland
  • USA
  • Canada
  • United Kingdom
If you meet these requirements and wish to apply for a loan from Fibank, you must:
  1. At your chosen Fibank branch , please complete the "Loan Application Form" and attach the documents specified in the form or any additional documents requested by the loan specialist;
  2. An inspection of the property is carried out and a market valuation is prepared, the cost of which is borne by the loan applicant;
  3. If the application is approved:
  • a loan agreement is signed;
  • A mortgage is registered on the property – the borrower pays all notary and government fees associated with the registration of the mortgage;
  • Once the mortgage has been registered and established, property insurance is provided.

 

If you wish to apply for a loan from Fibank, you must provide the following documents:

Personal documents of the borrower/co-borrower/co-debtor

  1. Loan application;
  2. Copies of the identity cards/passports of the borrower/co-borrower/co-debtor;
  3. A translated and certified current employment contract; A document from the employer confirming the validity of the employment contract; A tax return or other document proving income for the last 12 months; Bank statement covering the last twelve months; Credit reference report showing credit history/rating;
  4. Copy of a civil marriage certificate – if the applicant/co-applicant is married; Court decree of divorce – if the applicant/co-applicant is divorced;
  5. Certificate confirming the existence or absence of tax liabilities on the part of the loan applicant/co-applicant pursuant to Article 87(6) of the Tax and Social Security Procedure Code;
  6. Certificate from the Registry Agency regarding the matrimonial property regime.