Off Plan Mortgage: Terms & Conditions and Documents required

General Information for Off-Plan Mortgages
A 70 % off-plan mortgage in EURO currency from a leading Bulgarian bank is available for buyers who are residents of any country of the EU, the USA and Canada. A minimum of 30% of the purchase price must be paid with the buyer's own funds. All mortgages are subject to status and all applicants must provide the required documents and proof of income. Only those applicants able to meet the Terms & Conditions for repayment of their loan will qualify. The most important requirement to consider is that the monthly ratio of INCOME:DEBT is set at a maximum of 60:40 - ie: the total of monthly outgoings (including mortgage repayments) can not be greater than two-thirds of total monthly income
NB! This off-plan mortgage is available only on selected properties, where stated on the relevant property websites.

Mortgage details for the purchase of off-plan properties under construction
Maximum Loan value: 70 % of the apartment purchase price in Euro
Currency: EURO
Term: 20 years maximum
Annual interest rate: approx. 6.70 %
Loan amounts: minimum 7,500 Euros - maximum 250,000 Euros
Age conditions: minimum 23 years of age at the time of application and maximum 65 years of age by the time that the mortgage is fully paid
Collateral: Pledge of property in favour of the bank
Insurance: covered by the bank

Mortgage Management Fees
• 1.25 % one off fee, payable at the time of credit disbursement
• 0.9 % of the remaining principal sum per annum

Mortgage Documents
Documents to be submitted by applicants for a mortgage loan will be presented in both Bulgarian and English, officially translated by a sworn translator. No apostile is required on documents showing proof of income.

Completion and Submission of Documents
1. Application / Declaration (to be completed by our Mortgage Manager)

2. Income verification documents:
All documents must be submitted in the form required by the Bank and must include:

a) In the case of contracted employment:
• A copy of the employment contract plus proof of income documents from the employer
   for the last three months (pay slips)
• Income Tax Declaration for the last taxation period
• Bank Statements for the last six months, issued by the client’s bank abroad
• Document for the last two years issued by a Credit Bureau
• Marriage Status Certificate (if applicable)

b) In the case of non-contracted employment or self-employment:
• Income Tax Statement for the last taxation period
• Current period Income Statement
• Bank Statement for the last six months, issued by the client’s bank abroad (from    personal and company accounts)
• Document for the last two years issued by a Credit Bureau

Note: Until all necessary documents are submitted, the Retail Banking Credit Center (RBCC) will not initiate any credit file review.

Property Documents submitted to the Bank’s attorney or notary (by our office)
These documents include ...
• a certificate showing that the property is free of any encumbrances covering a period    of at least the last 10 years
• Title deeds
• Preliminary purchase-sale agreement (contract) plus right of use
• Sample Protocol 16 (certificate for habitation)
• Protocol under Art.181, Paragraph 2 of the Construction of Territory Act for the    reached core and shell construction stages (supplied by the respective municipal or    regional administration authority)

Our Charges
Apart from the charges indicated by the lender, Bulgarian Properties charge a fee of 260 Euros (₤185) which will cover all your legal, administration and document fees in Bulgaria. There will also be a Government tax of around 150 Euros (₤100) payable to a Notary upon signing the mortgage agreement.
Our fee is payable when your application is submitted. If the application is refused, or you change your mind, we reserve the right to withhold 120 Euros (₤80) to cover our administrative costs.