MORTGAGE LOAN

Mortgage credit

Credit purpose

The mortgage credit provided by Municipal Bank could be used for two main purposes:
I. PURCHASE OF IMMOVABLE PROPERTY
The following types of properties may be purchased using a mortgage credit granted for the purchase of residential property:
- finished (fully built) properties

-  apartments, houses, villas and studios; garages; shares of co-owned properties
-  purchase of immovable properties at the level of rough construction and Act 14, using another immovable property as collateral.
II. REFINANCING OF CREDITS, granted to the applicant, co-debtor or another natural person by other banks.

Currency

BGN and EUR

Credit amount

Minimum amount – 5000 BGN/EUR

Maximum amount - BGN 500 000 / EUR 250 000

1. For the “full responsibility” option:

Up to 85 % of the property’s market value for monolithic construction

Up to 70%  of the property’s market value for panel construction

2. For the “limited responsibility” option:

Up to 55% of the property’s market value for monolithic construction

Up to 50% of the property’s market value, accepted as collateral if the property constitutes a prefabricated concrete construction (panel construction)

Credit repayment period

Minimum period - 1 (one) year (12 months)

Maximum period - 30 (thirty) years (360 months)

Option

1. "Full responsibility" – the customer is responsible with all of their property

2. "Limited responsibility" – the creditor is satisfied up to the value of the immovable property used as a collateral

Collateral

Liquid fully finished immovable property, owned by the borrower/co-debtor or а third person – apartments, houses, studios, garages along with their adjacent shares of the land or the right to build.

First-ranking mortgage on residential property in favour of Municipal Bank for acceptable property collaterals. The mortgage may also be a second or subsequent-ranking mortgage if the previous mortgages are also in favour of Municipal Bank and guarantee receivables of the credit applicant/co-debtor.

Credit repayment

Equal monthly annuity payments, including principal and interest, repayment schedule with equal installments for principal and a decreasing interest rate.

Annual interest rate

The BGN and EUR credit’s annual interest rate is based on the 6-month EURIBOR plus a fixed surcharge.

Updated information about the credit’s annual interest rates could be found in the   Bulletin on the interest accrued by Municipal Bank AD on transactions with individuals

Fees and commissions 

      1.      Commission for analysis of the creditworthiness and collateral;

2.    Commission for renegotiation of the conditions in case of change of interest rates;

3. Fee for property collateral evaluation/revaluation - according to the tariff of the appraiser company;

4. Fee for verification of the collateral in the property register;

      5.      Fee for mortgage deletion.

Updated information about the interest rates, fees and commissions could be found in the  TARIFF of Municipal Bank AD for interest rates, fees and commissions applicable to individuals 

Other costs

Notary fees for establishing, renewing, changing and deleting the mortgage and the state fee for registering the mortgage.

Property insurance of the loan collateral.

Annual percentage of charges

Fees, commissions and other costs, which are included in the total costs for the credit:

      -          Annual interest rate – 2.778%

      -        One-off commission for analysis of the creditworthiness and collateral – 0.50 %

      -          Fee for preparation of a mortgage deletion application – 60 BGN

-          Fee for verification of the collateral in the property register – 12 BGN per year

-          Fee for property collateral evaluation – 120 BGN

*The APR calculations do not include the costs of the establishment, release and renewal of a mortgage, evaluation, revaluation and insurance of the collateral.

Additional services

Maintenance of a current account with the Bank throughout the term of the loan agreement, intended for utilization and repayment of the loan

The bank requires the consumer to conclude and maintain a property insurance policy for the property used as a collateral for the entire term of the credit agreement.

Bonus

Life insurance at the expense of the bank

Necessary documents

Credit application;

Identity documents, including of the credit applicant/ their spouse, co-debtor, respectively third indebted persons, who have provided their immovable property as collateral;

Documents proving income based on the bank’s form;

Documents regarding ownership and evaluation of property, mortgage establishment, purpose of financing and credit utilization;

In case of refinancing the applicant should provide documents regarding the credit granted by the other bank.