Mortgage loans for Bulgarian citizens with income from abroad

Loan applicant:

A natural person with full legal capacity, a Bulgarian citizen, who is self-employed or employed under a permanent employment contract in a country falling within the scope specified below.

Scope:

For loan 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 day-to-day expenses

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 for bank loans:

up to 80% of the market value of the property

Security:

• A mortgage on a property that has been commissioned, situated in a residential, administrative or commercial building.
• Co-borrower – a natural person with a permanent and current address in Bulgaria

Interest rate:

From 3.15%, a variable annual interest rate based on the Savings-Based Interest Rate* plus a margin, for the purchase of residential property, depending on each applicant’s individual credit rating, subject to the following conditions:

• transfer of the declared income   into a current account with the bank;
• use of a Visa/MasterCard credit card issued by the bank, active online banking and at least one utility bill payment registered via online banking;
• use of the banking package;
• use of insurance „Peace of Mind with FiHealth“ ;

Document processing fee:

EUR 102.26

Loan arrangement fee:

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

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

Property appraisal:

The appraisal of the property serving as security is carried out at the borrower’s expense by an independent property appraiser, external to the Bank, who is entered in the register of independent valuers maintained by the Chamber of Independent Appraisers, and is confirmed by an internal valuer of the Bank. (see Tariff –  Licensed asset appraisals).

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 are simultaneously eligible for all additional interest rate discounts, as follows:

• 1.00% when the declared income is transferred  to a current account with the Bank;
• 0.25% when using a Visa/MasterCard credit from   issued by the bank, with active online banking and at least one utility bill payment registered via online banking;
• 0.20% when using Peace of Mind with FiHealth insurance;
• 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 set out in detail 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 to 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 formed part of the conditions taken into account when setting the initially agreed interest rate;
• where the SBIR changes to such an extent that the amount of monthly interest due exceeds the agreed repayment instalment under the current repayment schedule;

in the event of a partial early repayment of the loan

Illustrative example:

Example:

- for a loan amount of EUR 100,000;
- repayment term: 300 months;
- annual interest rate: 3.15% variable annual interest rate, calculated on the basis of SBIR plus a margin.Based on the specified loan parameters and assuming that the loan is for the purchase of residential property, has been drawn down in full, the loan applicant receives their declared income into an account with the Bank, uses the ‘My Choice Online’ package, holds a credit card, uses online banking actively, has at least one utility bill payment set up via online banking, and has taken out ‘Peace of Mind with Fihealth’ insurance, the applicant is required to make a monthly repayment on a date of their choosing (instalment due date):

• 300 equal monthly instalments, each amounting to approximately EUR 482.05.
• The total amount due is EUR 154,090.53.
• The APR on the loan is 3.87%.

The APR includes an annual credit card fee of EUR 23.01, a one-off document processing fee of EUR 102.26, a loan arrangement fee of EUR 255.65, a monthly fee for the ‘My Choice Online’ banking package at of EUR 3.50, a fee for a current market valuation report of EUR 9.20, a fee of EUR 46.02 for the cancellation of a mortgage, as well as an annual premium for the ‘Peace of Mind with FiHealth’ insurance policy amounting to 0.505%.

Terms and 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 per cent 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, the borrower may choose one of the following options:

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

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 to be in arrears, and for the period of delay the borrower shall owe compensation for delay (a 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 security simultaneously, or from only one or more of them, in the order provided for by law and in accordance with the type of liability chosen by the borrower as specified in the agreement.

Deadline for accepting the loan offer:

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