Stricter BNB Regulations in Bulgaria Restrict Home Loans for 10% of Low-Income Applicants

Approximately 10% of individuals who previously qualified for home loans will no longer be eligible under new regulations set by the Bulgarian National Bank (BNB), according to brokers' estimates. This change predominantly impacts those with incomes below the national average. The BNB has implemented stricter conditions for loan approvals by commercial banks.

One significant new requirement stipulates that the monthly loan installment must not exceed 50% of the borrower's income. This adjustment affects the maximum loan amount available for home purchases.

Gergana Tenekidzhieva, executive director of a real estate agency, noted that clients have long been advised to avoid loans where monthly payments exceed 30% of their income. She believes the new regulation enhances borrowers' financial stability.

Other notable changes include a minimum down payment of 15% and restrictions on bank coverage to 85% of the property's value, as well as a maximum loan term of 30 years.