The Housing Finance System

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    A. Primary Housing Finance Market

    A.1 Industry Structure and Performance
    VariableEnd of 2017End of 2016End of 2015SourcesVar ID
    Types of originating lenders/market share:A.1.2
    Identify the 3 largest loan originating lendersUniCredit Bulkbanki, DSK Bank, First Investment BankUniCredit Bulkbank, DSK Bank, First Investment BankDSK Bank, United Bulgarian Bank, and Bulbank
    Hypostat/ECBC
    		A.1.3
    Level of Non-Performing Mortgage Loans (90 days or more past due):A.1.6
    as a % of outstanding loan amount  1.79%
    Bulgarian National Bank
    		A.1.6.2
    Average 1997-2007 A.1.7
    Lowest decile of the income distribution served by the dominant mortgage lenders2 decile  
    World Bank
    		A.1.8
    A.2 Size of Mortgage Finance Sector
    VariableEnd of 2017End of 2016End of 2015SourcesVar ID
    Total amount of home mortgage loans outstanding at the end of year in millions of USD:5,796.93 USD (millions)4,743.83 USD (millions)4,830.76 USD (millions)
    Bulgarian National Bank
    		A.2.1
    Total amount of home mortgage loans outstanding at the end of year as % of GDP (current)10.18%8.91%9.62%
    Bulgarian National Bank
    		A.2.1.1
    and as % of all credits outstanding10.96%10.82%11.36%
    Bulgarian National Bank
    		A.2.1.2
    Total amount of home mortgages made in calendar year in millions of USD 1,230.9 USD (millions)1,081.11 USD (millions)
    ECBC
    		A.2.3
    and as % of GDP (current)  2.35%2.15%
    ECBC, WEO
    		A.2.3.1
    A.3 Housing Finance Products
    VariableEnd of 2017End of 2016End of 2015SourcesVar ID
    Mortgage products as % of all mortgages (approx.) in local currency:A.3.1
    Loans based on foreign currency as % of all mortgage products26.51%35.56%44.38%
    Bulgarian National Bank
    		A.3.2
    Most prevalent type of foreign currency mortgage used:A.3.3
    Most frequent interest rates on fully amortizing:A.3.4
    most common indexed ARM/10 year term4.37%5.33%6.28%
    Bulgarian National Bank - Interest Rate Statistics
    		A.3.4.2
    foreign currency based 10 year FRM4.62%5.92%6.7%
    Bulgarian National Bank - Interest Rate Statistics
    		A.3.4.5
    Typical lender fees associated with mortgage origination: A.3.6
    as % of loan amount.1%.1% 
    Bulgarian Properties
    		A.3.6.2
    Typical third party fees associated with mortgage origination:A.3.7
    Loan-to-Value (LTV) on first mortgage: A.3.8
    Maximum LTV909090
    Various Commercial Banks
    		A.3.8.1
    Typical LTV at origination707070
    Various Commercial Banks
    		A.3.8.2
    Maximum term over which pmt is calculated? 35 years35 years35 years
    Various Commercial Banks
    		A.3.9
    Mortgage pmt-to-income ratio A.3.10
    A.4 Lending and Servicing Process
    VariableEnd of 2017End of 2016End of 2015SourcesVar ID
    Does the mortgage industry use standard principles/guidelines for underwriting?YesYes 
    Bulgarian National Bank
    		A.4.1
    Which institutions define underwriting rules? A.4.2
    Central Bank/Ministry of FinanceYesYes 
    Bulgarian National Bank
    		A.4.2.1
    Secondary market facilityNo  
     
    		A.4.2.2
    Major LenderNo  
     
    		A.4.2.3
    A.5 Credit Risk Assessment
    VariableEnd of 2017End of 2016End of 2015SourcesVar ID
    Do credit bureaus exist? YesYesYes
    Experian
    		A.5.2
    B. Funding Sources for Mortgages and the Secondary Mortgage Market
    VariableEnd of 2017End of 2016End of 2015SourcesVar ID
    What are the main funding sources for mortgages?B.1
    Retail funding (deposits/other)primaryprimaryprimary
    Bulgarian National Bank
    		B.1.1
    Funding through mortgage bonds secondarysecondarysecondary
    ECBC
    		B.1.3
    Funding through securitization of mortgagestertiarytertiarytertiary
    Hypostat 2016
    		B.1.4
    What is the proportion of RMBS in the overall private securities market?0%  
     
    		B.4
    C. Housing Microfinance
    VariableEnd of 2017End of 2016End of 2015SourcesVar ID
    Are non-collateralized housing micro-finance loans offered? YesYes 
    Habitat For Humanity
    		C.1
    Types of lenders operating in the housing micro-finance (HMF) sector:C.2
    NGOsYesYes 
    Habitat For Humanity
    		C.2.3
    Level of NPLs (>90 days past due) in HMFC.4
    back to top | Country Data:
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Total Income (Post Tax, Post Transfers), Average household income for Sofia (capital city)
    Notes: Total Income (Post Tax, Post Transfers), Average household income for Sofia (capital city)
    Notes: Total Income (Post Tax, Post Transfers), Average household income for Sofia (capital city)
    Notes: Total Income (Post Tax, Post Transfers), Average household income for Sofia (capital city)
    Notes: Total Income (Post Tax, Post Transfers), Average household income for Sofia (capital city)
    Notes: Total Income (Post Tax, Post Transfers), Average household income for Sofia (capital city)
    Notes: Total Income (Post Tax, Post Transfers), Average household income for Sofia (capital city)
    Notes: Total Income (Post Tax, Post Transfers), Average household income for Sofia (capital city)
    Notes: Total Income (Post Tax, Post Transfers), Average household income for Sofia (capital city)
    Notes: Total Income (Post Tax, Post Transfers), Average household income for Sofia (capital city)
    Notes: Total Income (Post Tax, Post Transfers), Average household income for Sofia (capital city)
    Notes: Total Income (Post Tax, Post Transfers), Average household income for Sofia (capital city)
    Notes:
    Notes:
    Notes:
    Notes:
    Notes: "Mortgage Bond Law" passed in parliament in 2000. (IME 2000, page 2)
    Notes: 0 percent of all loans were in Euro
    Notes: 0 percent of all loans were in Euro
    Notes: 0 percent of all loans were in Euro
    Notes: 0 percent of all loans were in Euro
    Notes: 0 percent of all loans were in Euro
    Notes: -1.17
    Notes: -10.30
    Notes: -14.07
    Notes: -14.75
    Notes: 19.17 percent of all loans were in Euro
    Notes: 22.68 percent of all loans were in Euro. Bulgaria joined NATO in 2003
    Notes: 25.35 percent of all loans were in Euro
    Notes: 32.37 percent of all loans were in Euro
    Notes: 33.96 percent of all loans were in Euro
    Notes: 34.20 percent of all loans were in Euro
    Notes: 36.71 percent of all loans were in Euro
    Notes: 42.98 percent of all loans were in Euro
    Notes: 45.14 percent of all loans were in Euro
    Notes: 47.15 percent of all loans were in Euro
    Notes: 49.76 percent of all loans were in Euro
    Notes: 49.91 percent of all loans were in Euro
    Notes: 54.44 percent of all loans were in Euro
    Notes: 56.35 percent of all loans were in Euro
    Notes: 57.24 percent of all loans were in Euro
    Notes: 75% for properties over EUR 100,000 and usually around 60 to 65% for brand new properties.
    Notes: a tax rate of 0.1 - 0.45% is levied on the value of the property, depending on rates set by the municipalities
    Notes: A tax rate of 0.1-0.45% is levied on the value of the property
    Notes: A tax rate of 0.1-0.45% is levied on the value of the property
    Notes: Actual lending rate is 102.52%. (Value too large to be entered in cell)
    Notes: Actual lending rate is 213.02%. (Value too large to be entered in cell)
    Notes: Actual lending rate is 291.06%. (Value too large to be entered in cell)
    Notes: Average of QoQ growth in HPI Index published by National Statistics Institute.
    Notes: Average of QoQ growth in HPI Index published by National Statistics Institute.
    Notes: Average of QoQ growth in HPI Index published by National Statistics Institute.
    Notes: Average of QoQ growth in HPI Index published by National Statistics Institute.
    Notes: Bulbank is the largest mortgage lender in Bulgaria
    Notes: Bulbank: 85% maximum DSK Bank: 80% maximum
    Notes: Capital gains tax is levied at 10%. This tax may be exempt if: 1) owner sells one property that was held for more than three years; 2) owner sells two properties that were held for more than five years
    Notes: Capital gains tax is levied at 10%. This tax may be exempt if: 1) owner sells one property that was held for more than three years; 2) owner sells two properties that were held for more than five years
    Notes: Capital gains tax of 10% This tax may be exempt if: 1) owner sells a property that was held for more than three years 2) owner sells two properties that were held for more than five years
    Notes: Estimate from a World Bank report -- few banks offer products for people with incomes lower than BGN 1000 -- which is roughly 2nd decile
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage
    Notes: Figure is the national percentage, Tenant rented at reduced price or free
    Notes: Figure is the national percentage, Tenant rented at reduced price or free
    Notes: Figure is the national percentage, Tenant rented at reduced price or free
    Notes: Figure is the national percentage, Tenant rented at reduced price or free
    Notes: Figure is the national percentage, Tenant rented at reduced price or free
    Notes: Figure is the national percentage, Tenant rented at reduced price or free
    Notes: Figure is the national percentage, Tenant rented at reduced price or free
    Notes: Figure is the national percentage, Tenant rented at reduced price or free
    Notes: Figure is the national percentage, Tenant rented at reduced price or free
    Notes: Figure is the national percentage.
    Notes: Figure is the national percentage.
    Notes: Figure is the national percentage.
    Notes: Figure is the national percentage.
    Notes: Figure is the national percentage.
    Notes: Funding of mortgage loans is based largely on deposits. Although mortgage bonds are being issued, they are not used as primary funding source by banks.
    Notes: Inflation rate was actually 4027.83% (however this exceeds the value bounds possible for data entry)
    Notes: Inflation rate was actually 549.21% (however, this exceeds value bounds possible for data entry)
    Notes: It is estimated that seven major banks at national level have disbursed around 85% of all mortgage loans. Market share by AUM is as follows: Unicredit (20.22%), DSK (12.64%), First Investment (9.61%), sourced from thebanks.eu
    Notes: Loan application fee - 0.1% of the amount of the loan
    Notes: Table: tps00155. National monthly minimum wages
    Notes: Table: tps00155. National monthly minimum wages
    Notes: Table: tps00155. National monthly minimum wages
    Notes: Table: tps00155. National monthly minimum wages
    Notes: Table: tps00155. National monthly minimum wages
    Notes: Table: tps00155. National monthly minimum wages
    Notes: Table: tps00155. National monthly minimum wages
    Notes: Table: tps00155. National monthly minimum wages
    Notes: Table: tps00155. National monthly minimum wages
    Notes: Table: tps00155. National monthly minimum wages
    Notes: Table: tps00155. National monthly minimum wages
    Notes: Table: tps00155. National monthly minimum wages
    Notes: The denominator (Total Credits Outstanding) comes from the BNB's total liabilities series.
    Notes: The interest rate was actually 180.0% (however, this exceeds value bounds possible for data entry)
    Notes: The main form of public support to households is social housing
    Notes: The rate was actually 114.31% (however, this exceeds value bounds possible for data entry)
    Notes: the RMBS market is extremely small
    Notes: Total Income (Post Tax, Post Transfers), Average household income for Sofia (capital city)
    Notes: Total Income (Post Tax, Post Transfers), Average household income for Sofia (capital city)
    Notes: Total Income (Post Tax, Post Transfers), Average household income for Sofia (capital city)
    Notes: Total Income (Post Tax, Post Transfers), Average household income for Sofia (capital city)
    Notes: Total Income (Post Tax, Post Transfers), Average household income for Sofia (capital city)
    Notes: Total Income (Post Tax, Post Transfers), Average household income for Sofia (capital city)
    Notes: Total Income (Post Tax, Post Transfers), Average household income for Sofia (capital city)
    Notes: Total Income (Post Tax, Post Transfers), Average household income for Sofia (capital city)
    Notes: Total Income (Post Tax, Post Transfers), Average household income for Sofia (capital city)
    Notes: Total Income (Post Tax, Post Transfers), Average household income for Sofia (capital city)
    Notes: Total Income (Post Tax, Post Transfers), Average household income for Sofia (capital city)
    Notes: Total Income (Post Tax, Post Transfers), Average household income for Sofia (capital city)
    Notes: Total Income (Post Tax, Post Transfers), Average household income for Sofia (capital city)
    Notes: Total Income (Post Tax, Post Transfers), Average household income for Sofia (capital city)
    Notes: Total Income (Post Tax, Post Transfers), Average household income for Sofia (capital city)
    Notes: Total Income (Post Tax, Post Transfers), Average household income for Sofia (capital city)
    Notes: transfer tax is levied at rates ranging from 0.1% to 3%, depending on the municipality
    Notes: Transfer tax is levied at rates ranging from 0.1-3%, depending on the municipality
    Notes: Transfer tax is levied at rates ranging from 0.1-3%, depending on the municipality