Bulgaria has emerged as a standout in Europe for having the lowest mortgage rates, according to a recent study by Deloitte. In 2023, Bulgarian mortgage rates were remarkably low, averaging just 2.58 percent. This rate is significantly lower than those in other European countries, with Poles paying an average of 8.08%, Romanians 7.70%, and Hungarians 7.40%. In Serbia and the Czech Republic, rates were also high, at 6.76% and 5.90% respectively.

Other countries that enjoyed relatively low mortgage rates last year include Belgium with an average of 3.33%, Croatia at 3.26%, and Spain at 3.45%. The study's authors observed that Europe's mortgage landscape is quite varied but did not provide specific reasons for Bulgaria's notably low rates. They attributed differences in national credit markets to a mix of factors such as housing affordability, household debt levels, and financial literacy.

The low mortgage rates in Bulgaria have been widely discussed and analyzed. A significant factor contributing to these low rates is the growing income levels in certain sectors. Many Bulgarians prefer to keep their savings in banks rather than investing in stocks, shares, or mutual funds. This excess of deposited money encourages banks to offer cheaper loans. Additionally, with low interest rates and a strong preference for real estate investments, Bulgarians are taking out more loans to purchase properties, driving up housing prices despite warnings of a potential price bubble.

The trend of rising property prices continues into 2024, in line with increasing bank savings and persistent low mortgage rates. In contrast, other European countries are experiencing different real estate market dynamics. Germany is dealing with a crisis and declining property prices, while countries like Portugal, Romania, Denmark, and Austria are facing significant increases in mortgage interest rates.