Mortgage Overdraft

Our proposal
  • Interest rate from 2.15%;
  • Convenience – you have the full loan amount in your account and can use the funds without any compulsory monthly repayments;
  • Cost-effectiveness – you only pay interest on the portion of the loan you have drawn down;
  • Flexible term – the overdraft period is a minimum of 1 year and a maximum of 5 years from the date the agreement is signed. After this period, the loan will be repaid in equal monthly instalments, in accordance with the repayment schedule.
    • Option for additional funding:
      •  for repairs and improvements to the purchased property as part of the mortgage, with no requirement to provide invoices or supporting documents;
      • with a ‘HOME+’ consumer loan at preferential interest rates and a repayment term of up to 15 years.
  • Financing the purchase of a property at the ‘shell’ stage of completion
  • Term of up to 30 years – maximum age at the end of the loan term: 75 years
  • Special offer for refinancing a mortgage from another bank: depending on the applicant’s individual credit rating, Fibank will cover the notary and government fees associated with registering the mortgage, up to a maximum of EUR 600

 

* The special offer for mortgage refinancing applies provided that the loan was granted by First Investment Bank AD, without the involvement of a third party, and the borrower 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 borrower must reimburse the Bank for the expenses it has incurred.

Parameters

Loan parameters

Purpose of the loan:

  • purchase of property;
  • renovation and finishing works;
  • refinancing of loan obligations;
  • current needs.

Loan currency:

EUR

Loan amount:

No limit

Interest rate:

from 2.15%, variable annual interest rate based on SBIR plus a margin, for the purchase of residential property, subject to each applicant’s individual credit rating and provided the following conditions are met:

SBIR – the savings-based interest rate is a reference interest rate calculated for each individual currency in accordance with the methodology announced by the Bank.

Characteristics of the interest rate, 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:

The annual interest rate is determined based on the credit rating and the net monthly income of the applicant(s).

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 were taken into account when determining the initially agreed interest rate;
  • in the event of a change to the SBIR such 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

- loan amount of EUR 100,000;

- a repayment term of 360 months, of which 12 months are under an overdraft facility;

- annual interest rate: 2.45% variable annual interest rate, calculated on the basis of the base lending rate plus a margin.

In accordance with the specified loan parameters, and assuming that the loan is for the purchase of residential property, is secured against 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 and has at least one utility bill payment set up via online banking, the loan applicant is required to make monthly repayments on a date of their choosing (repayment due date):

  • 348 equal monthly instalments, each with an indicative amount of EUR 394.38.
  • The total amount owed by the loan applicant is EUR 143,979.58.
  • The APR on the loan is 2.63 %.

 

The APR includes an annual credit card fee of EUR 23.01, a loan arrangement fee of EUR 255.65, a monthly fee for the ‘My Choice Online’ banking package of EUR 3.50, a fee for a current market valuation report of EUR 9.20, and a mortgage discharge fee of EUR 46.02.

Repayment method:

In equal monthly instalments, following the expiry of the overdraft period

Loan-to-value ratio:

Up to 85% of the market value of the property

Security:

Mortgage on the property being purchased or another property situated within the territory of the Republic of Bulgaria

Loan arrangement fee:

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

The fee is payable no later than the 28th of the calendar month in which the overdraft was granted. If it was granted on the 29th, 30th or 31st, it is payable by the 28th of the month following the month in which it was granted.

Appraisal of the property:

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).

Possible additional costs relating to the loan:

Additional costs payable under the loan agreement which are not known to the Bank and which are not included in the total loan costs:

  • the relevant notary fees payable in respect of the creation of a mortgage in favour of the Bank;
  • the relevant notary and government fees payable in respect of the renewal and cancellation of the security interests established in favour of the Bank;
  • valuation of the property;
  • insurance costs for the property serving as security for the term of the agreement.

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. No early repayment fee is payable if repayment is made after this period.

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 compensation for delay 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 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.

 

“SBIR –  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 is calculated according to each applicant’s individual credit rating.

Apply

Apply easily and conveniently in one of the following ways:

You can apply for a loan from Fibank if:
  • you are a legally competent individual and a Bulgarian citizen;
  • you have a proven, regular income.

If you meet these requirements and wish to apply for a loan from Fibank, you will need to:

  1. Complete the ‘Loan Application Form’;
  2. Prepare the documents specified in the mortgage loan application;
  3. Submit a market valuation prepared by a licensed valuer;
  4. 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 loan applicant/co-applicant

  1. Loan application;
  2. Copies of the applicant’s/co-applicant’s identity cards;
  3. Where necessary, documents proving the applicant’s/co-applicant’s income (employer’s certificate, annual personal income tax returns, copies of civil contracts, copies of tenancy agreements, etc.);
  4. Other documents, at the bank’s discretion