Lending to foreign nationals working in Bulgariа
Lending to foreign citizen working in Bulgaria seems complicated at first glance, but it is quite possible, especially with the help of a professional credit counsellor. However, not every bank can offer this service and the banks that actually do have the appropriate requirements. We at Creditchoice are going to tell you more about the process today.
Conditions for applying for a loan
As we already mentioned, not every bank can offer a mortgage loan to a foreign citizen. However, you can still find institutions that will provide the necessary amount for a foreigner working in Bulgaria. As the bank assumes a higher risk, it also imposes certain restrictions, and we are going to talk more about those.
To use a mortgage loan for foreigners, you must:
- Be a foreign or Bulgarian citizen who does not have a permanent residence in Bulgaria.
- To work on an employment contract for at least a year
- To have a good credit history
Some banking institutions may provide not only a mortgage for the purpose of purchasing real estate, but also may provide the opportunity to refinance similar targeted loans. In other words- if you already have a loan that is not profitable for you, then you can easily refinance it with a more advantageous offer.
Maximum amount of funding
The maximum amount of funding for a foreign citizen working in Bulgaria often reaches a maximum of 70% of the market value of the property. However, we do not exclude the possibility of a higher percentage of funding. As we assume you already know, this assessment is given by an independent expert appraiser. To receive this, you must pay a fee, which price can be between BGN 150-250 and can take up to 3 days. It is important to know that the terms can be negotiated with the banks, and they can make additional discounts on the price parameters of the loan.
Interest rates and loan term
The interest rates for lending to foreigners vary for each bank. They are formed by a reference interest rate added to a fixed margin. You can choose the repayment plan, which can be in decreasing monthly installments or not. Usually, a deposit is paid every few months, and the number of the installments is fixed with the bank.
The loan terms have some restrictions for foreigners. Some banks offer a term of 25 years for foreigners, but this is rare and most often you will meet a maximum term of 15 years.
As you already know, if you are a foreign citizen working in Bulgaria, the process of taking a loan can be accompanied by a lot of administrative and bureaucratic procedures. If you are facing this task, we are Creditchoice can help you! Mortgage for foreigners is a special product that you need to be familiar with before acting.
We, at Creditchoice will be happy to help and support you in every step of this journey- from negotiating with the bank for the best possible conditions to organising the documentation. The Creditchoice team pays attention to all the features and small details, delves into the “small print” and works entirely for the benefit of the client, regardless of whether he is a Bulgarian citizen or not. Our credit consultants are online, and you can arrange a personal consultation here:
