Buying a home with a mortgage is the most common route to ownership in Bulgaria. Since 1 January 2026 the country is part of the eurozone, and housing loans are issued in euro. Here is what to know before you apply.
Bulgaria has some of the lowest mortgage rates in the eurozone. According to Bulgarian National Bank data, the average rate on newly issued housing loans in spring 2026 is around 2.45%, with an average APR of about 2.8% — well below the eurozone average of roughly 3.4%. Strong competition between banks and high liquidity keep pricing low. Your actual rate depends on your profile and can change — treat these figures as indicative.
Most Bulgarian mortgages carry a variable rate linked to an index. Now that Bulgaria is in the eurozone, rate movements increasingly track ECB policy. Some banks offer a fixed rate for the first years — more predictable payments at a slightly higher price. Compare both options.
Banks typically finance up to 80–85% of the property valuation, so you need at least 15–20% of your own funds, plus transaction costs (about 5–6% in Sofia, excluding agent commission). A larger down payment usually earns you a better rate.
The maximum term is usually 30–35 years. As a rule of thumb, keep the monthly payment at a sensible share of your income — banks rarely approve payments above 50% of the household's net monthly income.
If you buy in a building with a high energy-efficiency rating (class A or B), many banks offer a discounted interest rate. Over the life of a mortgage even a small discount saves thousands of euros.
Planning a purchase with a mortgage? Call us or visit our office — we will help you size your budget, choose the right property and walk you calmly through the whole process.
