Home Loans and Payment Schemes for Bulgarian Property

Because there has been a reduction in the number of mortgage products and home loans available in Bulgaria, some developers are offering special financial services. These services include deferred payment schemes, long term loans and staged payments. In conjunction with our partners, Apple Tree Properties, we can arrange the purchase of properties through these special payment schemes. Payment is generally made in monthly instalments over a period of between 12 months and 10 years, depending upon the developer. The interest rates are normally lower than those charged by banks in Bulgaria. In some cases the loans are given interest-free.

Deferred Payment Schemes

Deferred payment schemes are often referred to as "Buy Now Pay Later" schemes. They enable a client to buy property without the need for a mortgage. The purchaser gives the developer a percentage of the price as a deposit. The remainder of the price is paid over a fixed term. The repayment period is usually between 1-5 years. The purchaser is allowed to use and to rent out the property after the agreement is signed and the apartment is completed. He or she does not normally become the owner of the property until all the payments have been made.

Long Term Loans

Some developers have special arrangements with banks and financial institutions. They offer long term loans to clients who purchase one of their new properties. The loans are usually offered at or below the normal interest rate charged by the bank. Purchasers of these properties get preferential treatment by the banks.