Starting today, new restrictions imposed by the Bulgarian National Bank (BNB) on housing loans will take effect. Under these regulations, commercial banks are prohibited from lending more than 85% of the property's market value.

Additionally, the maximum repayment period for mortgage loans is capped at 30 years, and borrowers' monthly installments cannot exceed 50% of their monthly income. According to real estate agency data, approximately 50% of home buyers in Sofia rely on mortgage loans, but brokers predict that around 10% of individuals who previously qualified for loans may now find themselves unable to do so.

There is provision for the approval or renegotiation of loans that deviate from the newly established requirements; however, the total amount of such loans approved or renegotiated in the current quarter cannot exceed 5% of the total gross value of newly granted or renegotiated loans from the previous quarter. To monitor these allowable deviations, the BNB will implement additional reporting measures.

BNB Governor Dimitar Radev noted that these exceptions may apply in cases where other types of collateral are used alongside residential real estate.