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Mortgage credits for Bulgarian citizens having income earned abroad
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Credit purpose
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FOR PURCHASE OF IMMOVABLE PROPERTY ON THE TERRITORY OF THE REPUBLIC OF BULGARIA
The mortgage credit for the purchase of residential property may be used for the purchase the following types of properties:
- finished (completely built) properties, where at least 50% of their total built-up
area are intended for residential purposes:
- apartments; houses; villas, studios; garages.
Additional financing for reconstruction purposes could be approved on the basis
of the bill of quantities provided by the customer. The credit share intended for reconstruction/repairs
could not exceed 40% of the total credit approved.
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Currency
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BGN and EUR
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Credit amount
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Minimum amount – 5000 BGN/EUR
Maximum amount - BGN 500 000 / EUR 250 000
1. For the “full responsibility” option:
Up to 60 % of the property’s market value for monolithic construction
Up to 50% of the property’s market value for panel construction
2. For the “limited responsibility” option:
Up to 40% of the property’s market value for monolithic construction
Up to 30% of the market value of the property, accepted as collateral if the property constitutes a prefabricated concrete construction (panel construction)
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Credit repayment period
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25 (twenty-five) years for the full responsibility option
15 (fifteen) years for the limited responsibility option
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Option
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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
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Collateral
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Liquid fully finished immovable property, owned by the borrower/co-debtor or a 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 properties provided as a collateral.
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.
Additional:
* The bank requires the credit applicant to maintain a minimum availability in the account opened in his name in Municipal Bank, equal to the sum of three credit repayment instalments, for the entire credit term.
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Credit repayment
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Equal monthly annuity payments, including the principal and the interest, repayment schedule with equal instalments on the principal and a decreasing interest.
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Annual interest rate
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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
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Fees and commissions
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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
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Other costs
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Notary fees for establishing, renewing, changing and deleting the mortgage and the state fee for registering the mortgage.
Property insurance of the loan collateral.
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Annual percentage of charges
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Credit amount
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Interest rate
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APR
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Period
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Monthly
instalment
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Number of instalments
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Total costs for the credit
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Total amount due
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100 000 BGN
*option 1
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6.078%
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6.40%
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25
years
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649.08 BGN
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300
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96 202.39 BGN
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196 202.39
BGN
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100 000 лева
*option 2
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9.278%
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9.92%
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15
years
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1030.87 BGN
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180
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86 916.82 BGN
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186 916.82
BGN
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Fees, commissions and other costs, which are included in the total costs of the credit:
- Annual interest rate – 6.078% (for the full responsibility option) and 9.278% (for the limited responsibility option)
- One-off commission for analysis of the creditworthiness and collateral – 1 %
- Fee for the 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 for the establishment, release and renewal of a mortgage, evaluation, revaluation and insurance of the collateral.
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Additional services
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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 immovable property used as a collateral for the entire term of the credit agreement.
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Bonus
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Life insurance at the expense of the bank
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Necessary documents
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Credit application;
Identity documents, including of the credit applicant/spouse, co-debtor, respectively third indebted persons, who have provided their immovable property as collateral;
Documents proving the income based on the bank form;
Documents regarding ownership and evaluation of property, mortgage establishment, purpose of financing and credit use;
Additional documents, proving the income earned abroad – one of them or combination of documents:
1. Employment contract
2. Bank statements
3. Pay-roll slips
4. Tax return
5. Official document issued by a local credit bureau certifying the credit history
The documents have to be translated by a sworn translator and must be legalized.
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