Housing loans in Bulgaria remain among the most affordable in Europe, with mortgage lending continuing to break records. This was highlighted by credit consultant Tihomir Toshev during an interview on NOVA, where he examined current trends in lending and personal savings across the country.

Toshev explained that while there has been a slight drop in interest rates on home loans, it's largely the result of a temporary promotion by one bank. The main players on the market have kept their rates steady. Nonetheless, Bulgaria, along with Malta, continues to offer some of the lowest mortgage interest rates across the EU.

According to Toshev, the volume of housing loans issued in June alone surpassed 1.2 billion leva - marking a record high. The number of mortgage contracts also rose by 15% year-on-year, indicating heightened demand. At the same time, deposits in Bulgarian banks are growing at a similar pace, with savings now exceeding 92 billion leva.

On the topic of Bulgaria’s eurozone entry, Toshev said that interest rates are likely to remain stable even after the transition. He expects banks to continue basing their mortgage terms on local indices that reflect Bulgaria’s financial environment, while also adapting to eurozone standards.

The conversation also turned to recent changes passed by Parliament concerning the so-called “main account” - a fee-free basic bank account. Under the new law, individuals will be able to make up to ten cash withdrawals and three electronic transfers per month without being charged fees. These changes were approved unanimously, with all 150 MPs voting in favor during the second reading of amendments to the Payment Services and Payment Systems Act.

Toshev noted that while the financial savings from this change may seem modest - ranging between 6 and 15 leva per month - the impact will be meaningful for low-income individuals, retirees, and those currently without a bank account. He emphasized the benefit of this account in the context of Bulgaria’s upcoming currency change. Starting January 1, 2025, lev balances in these accounts will be converted to euros at the official fixed rate of 1.95583.

He warned against using exchange offices that offer lower conversion rates of 1.97 or 1.98 leva per euro, suggesting instead that people deposit their money into main accounts to ensure an accurate and fair conversion.

This type of account stems from an EU directive, which entitles every European citizen to a basic payment account. It is specifically designed for individuals who previously lacked access to banking services. These accounts come without service fees and are suitable for receiving wages, pensions, social assistance, scholarships, and the interest accrued on them. Users will be able to withdraw cash or make payments via bank terminals up to ten times a month, free of charge.

Toshev encouraged anyone who does not yet have a bank account to consider opening one, highlighting it as a practical option for avoiding unnecessary fees and securing a smooth transition to the euro.