On 27 October the Bulgarian National Bank (BNB) published its interest rate statistics for September 2026. This article continues our series on the subject — most recently we covered the August figures and the proposed windfall tax on banks, and before that the ECB's decision of 10 September.
The short version: after two ECB rate hikes this year, the average rate on new housing loans in Bulgaria is exactly where it was in June.
According to the BNB, for new housing-loan business:
| Month | Average rate | APR |
|---|---|---|
| June 2026 | 2.41% | 2.75% |
| July 2026 | 2.43% | 2.77% |
| August 2026 | 2.42% | 2.81% |
| September 2026 | 2.41% | 2.76% |
Over the same period the ECB raised its deposit facility rate from 2.00% to 2.50% — in two steps, effective 17 June and 16 September. Bulgaria's mortgage market has barely reacted.
We looked at the reasons in detail in earlier articles: Bulgarian banks fund lending mainly from cheap deposits, and competition for good borrowers remains strong. ECB hikes reach variable-rate loans gradually, through the reference index, not within a month.
One detail from September is good news: the gap between APR and the interest rate is narrowing — 0.35 points against 0.39 in August. The APR also captures fees and mandatory costs, so a smaller gap means cheaper servicing around the rate itself.
Total housing loans at the end of September stood at around €19.6 billion. Annual growth was 24.8% — down from 25.2% in August and 25.7% in July. The pace is easing month after month, but it is still very high by any European standard.
Consumer loans are growing more slowly — €12.4 billion, up 16% year on year.
In other words: more new mortgages are being granted than over the summer, but the stock is no longer accelerating. That matches what we see in the market — fewer transactions, but those that do happen are increasingly financed with a loan.
The ECB Governing Council announces its next decision on 29 October 2026 (14:15 CET). Whatever it decides, the effect on Bulgarian mortgages will not show up in the October data — that is published at the end of November.
Compare on APR, not just the rate. Two offers with the same rate can differ by tens of euros a month because of fees and insurance. Our guide to comparing mortgage offers explains how.
Build a buffer into the payment. On a €200,000 loan over 25 years, the monthly payment at 2.41% is about €888. If the rate rises by 0.25 points, it becomes about €913. This is an illustration, not an offer — run your own scenario in our mortgage calculator.
Ask about the fixed period and the index. With a variable rate, what it is linked to and how often it resets both matter. A fixed period of several years gives predictability if you expect the ECB to keep raising rates.
Don't put off approval "to see what happens". Four months of data give no reason to expect a lower rate by waiting. A pre-approval gives you a clear budget before you negotiate the price.
In September the average rate on new housing loans was 2.41%, the APR 2.76%, and new business rose to €643.6 million. The stock reached €19.6 billion, with annual growth slowing to 24.8%. Two ECB hikes have not made Bulgarian mortgages more expensive — at least not yet.
If you are planning to buy with a mortgage and want to see what banks will actually offer you, call us or visit our office. We will look at your case and help you compare the offers.
BNB data for September 2026, published on 27 October 2026. Rates are market averages and indicative; an individual offer depends on the bank, your income and the property.
