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"The Right of Choice" Housing/Mortgage Loan

Housing and mortgage loans from Fibank with new even better conditions!

Take advantage of:

  • Very attractive interest rates tailored to your credit rating;
  • No application, granting, management or commitment fees;
  • Unlimited loan amount and up to 100% financing from the market value of the property;
  • Fibank will pay the notary and state fees for establishing the mortgage when refinancing the loan from another bank [1].

Ask our consultants for your individual terms!

With the "Right of Choice" housing/mortgage loan you have the opportunity of:

  • Buying or building your new home;
  • Repairing an existing or a new home;
  • Reducing the monthly loan costs by refinancing your existing obligations;
  • Meeting other financial needs.
Loan purpose Purchase of property, repairs, repayment of existing debts and other current needs.
Loan amount Unlimited
Currency BGN, EUR
Repayment Period
  • for loan to purchase real estate - up to 35 years (420 months);
  • for loan for repair works/ repayment of existing liabilities/ other current needs - up to 30 years (360 months).
Repayment method

In equal monthly repayment installments

% of lending by bank loan Up to 100% of the market value of the property
Collateral

Mortgage on the following real estates in the Republic of Bulgaria:

  • purchase or other real property located in a residential or office building;
  • regulated land plot;
  • agricultural land up to 6 (sixth) category
Property assessment fee The fee is determined based on the parameters of the property. The assessment of the property serving as collateral shall be made at the expense of the borrower by an independent, external to the Bank, real estate appraiser, entered in the register of independent evaluators kept by the Chamber of independent evaluators and shall be confirmed by internal evaluator of the Bank. (see Tariff - Licensed assessments of assets).
Interest rate
Interest rate on annual basis BGN/EUR
For the first year (12 months) min. 3.00% fixed annual interest rate
for the remaining period of the loan term min. 3.00%, variable annual interest rate, formed on the basis SIR+margin

SBIR - savings-based interest rate is a reference interest rate calculated for each individual currency type according to a methodology announced by the Bank.

   
Characteristics of interest rate, possible consequances The specified minimum interest rates apply to borrowers that meet the Bank's requirements for the entire duration of the loan agreement, have no delay in the payment of any outstanding amount of the loan for a period longer than 30 days and use all the additional interest rate discounts, as follows:
  • 1.00% upon transferring of their declared income on a current account with First Investment Bank AD;
  • 0.25% for using a Visa/MasterCard credit card issued by First Investment Bank AD, including a subscription for SMS notification;
  • 0.25% for using "My Choice Online" package.
The annual interest rate is determined according to the individual credit rating of each borrower.
The interest payable by the borrower is paid periodically in the amount and on maturities detailed in the repayment schedule, an integral part of the loan agreement.
Changes to the repayment schedule and repayment installment may occur:
  • in the case of a change in the interest rate applicable to the loan agreement as a result of a change in the declared circumstances by the borrower or at termination of the use of any of the products and services as a condition taken into account in forming the initially agreed interest rate;
  • in the case of a change in the SBIR to the extent that the amount of the monthly interest due exceeds the agreed amount of the repayment installment under the current repayment schedule;
  • at the request of the borrower SBIR;
  • at partial early repayment of the loan.

Representative example

Example:
For loan amount of 120 000 BGN;
Repayment period of 360 months;
Annual interest rate:

  • 3.00% fixed annual interest rate for the first 12 months
  • 3.00% variable interest rate (SIR + margin) for the remaining period of the loan repayment term
According to the specified loan parameters and assuming that the loan is fully utilized, the borrower receives their declared income on a bank account, uses "My Choice Online" package and holds a credit card with a subscription fee for SMS notification, the borrower shall pay each month on a specific date of the month (maturity date):
- 12 equal monthly repayment installments, each amounting to BGN 508.78;
- 348 equal monthly repayment installments each with an indicative amount of BGN 508.78.
The total amount due from the borrower amounts to BGN 188,905.23.
APR on the loan is 3.35%.

The APR includes the cost of an annual credit card fee of BGN 39, a package program with a monthly fee of BGN 3 and the cost of insurance of the immovable property subject to collateral for the entire term of the agreement.

Possible additional expenses for the loan Additional costs due under the loan agreement that are not known to the Bank and which are not included in the total cost of the loan:
  • the relevant notarial fees due on the establishment of a mortgage in favor of the Bank;
  • the relevant notarial and state fees due for renewal and cancellation of the collaterals established in favor of the Bank;
  • assessment of the property.

Conditions related to early repayment of the loan In the event that the borrower wishes to exercise their right to repay early part or all of their obligations under the loan agreement, the borrower shall submit an explicit written request to the Bank containing the size of the early repayment amount and the date on which the borrower wishes to settle such amount.

Early repayment commission amounting to 1% of the early repaid loan amounts shall be due when the loan is repaid before repayment of 12 monthly repayment installments from its utilization. Upon repayment after this period, the early repayment commission shall not be due.

Upon early partial repayment, one of the following options is available at the choice of the borrower:
  • reducing the amount of the repayment installment and keeping the period for repayment of the loan;
  • reducing the period for repayment of the loan and maintaining the repayment installment on the loan;
  • a combination of the two options outlined above.
Possible consequences at non-compliance Payments due but not paid in due time because of a shortage of funds on the current account of the borrower at the Bank shall be recognized as past due, and for the time of delay the borrower shall pay a penalty for late payment (a penalty surcharge) on the amount of the overdue amount. The penalty for delay shall be at the amount of the statutory interest.
In the event that the borrower fails to fulfill any of their obligations under the loan agreement or the loan is declared fully and prematurely due, the Bank shall have the right to be satisfied by all collateral at the same time or by only one or several of them under the procedure provided by law, and according to the type of liability chosen by the borrower and specified in the loan agreement.
Deadline for accepting the offer for the loan The borrower shall have a term of 14 (fourteen) days of receipt of a draft loan agreement to decide on its conclusion.

Additional services for the offered loan

Along the baseline loan the borrower shall have the option to select additional services and thus to tailor their loan according to their desire in one of the below mentioned ways. The choice of services is not required for the use of the loan. The additional services shall be requested upon applying for the loan and shall depend on the credit plan selected by the borrower. Upon selecting additional service the annual interest rate on the loan shall change with fixed allowance (if such is listed).

Insurance You can provide additional security and financial stability for you and your family in the event of unforeseen events. Especially for Fibank's clients, we offer you to conclude credit protection insurance - "Ease with FiHealth".
Overdraft(flexible repayment schedule)

You can plan and realize your plans with maximum flexibility and repay your obligations in accordance with your possibilities. You have the opportunity to reuse the amounts already repaid. The overdraft period is at least 1 year, maximum 5 years from the date of conclusion of the agreement, after which the loan is repaid in equal monthly repayment installments, according to the repayment schedule.
During the overdraft period, compliance with the terms and conditions for payment of the interest due under the loan agreement does not result in the payment of the total amount of loan.

Interest rate base(BIR, Sofibor-12m, Euribor - 12m) After the first year of the loan term the borrower can select one of the following interest rate bases: BIR or 12-month Sofibor (for loans in BGN) or 12-month Euribor (for loans in EUR).
Grace period

Additional relief, which allows the borrower every five years after the first year of the contract term (after the sixth year of the contract term in the case of overdraft) not to pay the principal or the loan installment according to their choice to a total of twelve (12) months.
This additional relief can be used by increasing the respective proposed interest rate with a margin of 0.5 (zero point five) points for the entire term of the loan agreement.

Interest bonus The correctness of the borrower can be rewarded. The bonus is obtained, if the borrower has correctly served twelve (12) consecutive months (representing one reporting period of the contract term) all loan products and services used by them provided by First Investment Bank AD. The bonus amounts to 1% on annual base on the outstanding principal of the loan at any point of the respective reporting period.
This additional service can be used by increasing the respective proposed interest rate with a margin of 0.5 (zero point five) points for the entire term of the loan.


 

[1] If the purpose of the loan you request is to refinance existing obligations to another financial institution, Fibank will pay the state and notary fees payable by you for the provision of the loan collateral, but not more than BGN 1 500 (one thousand and five hundred Bulgarian levs). Upon full or partial early repayment of the loan, before the expiration of 36 months from the date of signing the loan agreement, you shall refund to the bank the expenses incurred thereby.

You can apply for a Loan from Fibank  if you are:

  • If you are legally capable natural person, a Bulgarian citizen;
  • You work under employment or equalized relation for an indefinite period or under contract for management and control, or you are a freelancer.

If you meet the above requirements and would like to apply for a Loan from Fibank, it is necessary:

  1. In Fibank branch at your choice to complete "Loan Request" and to enclose thereto the documents specified in the form or further required by the credit specialist;
  2. An inspection of the property shall be conducted and market assessment shall be prepared to be paid by the borrower;
  3. If the request is approved:
  • loan agreement shall be signed;
  • mortgage shall be registered on the property - the borrower shall pay all notary and state fees for the registration of the mortgage;
  • after registration of the mortgage Property insurance shall be provided.

Documental proof of the income of the borrower/co-borrower:

  1. A Certificate for the net income during the last six months of the borrower/co-borrower;
  2. Other documentation proving the income of the borrower-co-borrower -  Annual Tax Declaration for the personal income tax, copies of civil contracts, lease contracts, etc;
  3. Copies of loan, overdraft, leasing, warrant contracts, etc. as well as the actual status of the debt as of the moment.

Documentation for the real estate that will be used as collateral for the loan:

  1. Copy of the ownership instrument on the real estate that will be used as collateral security for the loan;
  2. Certificate of tax assessment of the property that will be used as collateral security for the loan under Article 264 para. 1 of the Tax-Insurance Procedure Code;
  3. Certificate, issued by the Registry Agency for the presence/lack of burdens, established on the real estate that will be used as collateral security for the loan;
  4. Actual sketch of the property (required if there is ownership of a yard) issued not more then 6 months earlier.

Personal documents of the owners of the real estate in case they are different from the borrower/co-borrower:

  1. Copy of the identity cards of the owners of the property that will be used as collateral for the loan;
  2. Certificate for the presence/lack of tax obligations under Article 87, para. 6 of the Tax-Insurance Procedure Code of property owners;
  3. Certificate of the marital status of the property owner/s:
  • If the owner/s is/are married –a  Certificate of Marital Status of one of the owners and a copy of the Certificate of Civic Marriage;
  • If the owner/s is/are not married – a Certificate of Marital Status;
  • if the owner/s is/are divorced – a Certificate of  Marital Status and a copy of the court decision for the marriage dissolution;

If the real estate, which is the subject of the deal is acquired by descent, by donation or before the marriage and the owner is married, then it is mandatory to provide a Declaration – Consent, signed by the owner’s spouse under Art. 26 of the Family Code for sale of family home.

Terms and Conditions (Tariff) of First Investment Bank

Loans