Mortgage rates in Bulgaria today: fixed or variable

Bulgaria's adoption of the euro on 1 January 2026 changed the way local banks offer and calculate mortgage loans - instalments are now denominated directly in euro, and interest levels increasingly track decisions made by the European Central Bank. For property buyers in Sofia, this makes choosing the right loan and the right type of interest rate more important than ever. This article looks at current interest rate levels, borrower requirements, and the difference between a fixed and a variable rate.

How high is the average mortgage rate today

According to the latest official data from the Bulgarian National Bank (BNB) for April 2026, the average interest rate on new housing-loan business is 2.45%, while the rate on outstanding (already disbursed) loans is 2.68%. The annual percentage rate (APR), which also includes additional loan fees, ranges between 2.7% and 2.8%.

These averages, however, hide a considerable spread in practice. Individual banks' offers range between 2.6% and 4%, depending on the borrower's profile - income, employment, credit history, loan size, and the ratio between the property's value and the loan amount. The lower this risk is for the bank, the closer the offered rate typically sits to the bottom of the range.

Fixed or variable rate

Banks in Bulgaria mainly offer two approaches. In the first, the rate is fixed for an initial period - usually between three and ten years - after which the loan switches to a variable basis. In the second, the rate is variable from the outset and tracks a reference benchmark, most often EURIBOR, plus a fixed bank margin.

The difference between the two ends of the current market range is not merely theoretical. On a loan of 150,000 euro over a 25-year term, the monthly instalment at a rate of 2.6% is about 681 euro, while at a rate of 4% it rises to about 792 euro - a difference of more than 110 euro a month, or close to 33,000 euro more paid in interest over the full term of the loan.

A fixed rate provides predictability and protection if market rates move upward, but it typically starts slightly higher than the initial variable rate. A variable rate can be more advantageous in a stable or falling rate environment, but it carries the risk of a higher instalment if EURIBOR rises. The choice depends on your personal tolerance for risk and on the horizon over which you plan to keep the property - the longer that horizon, the more weight the predictability of a fixed rate carries.

What are the requirements for borrowers

Under BNB's regulatory requirements, the maximum loan-to-value ratio (LTV) is 85% - meaning the minimum required down payment is 15% of the property's value. On a property worth 150,000 euro, that means close to 22,500 euro in own funds are needed before a loan can be disbursed.

The regulator also sets a maximum ratio of 50% between a borrower's total monthly debt payments and their income (DSTI). The maximum term for a mortgage loan in Bulgaria is 30 years.

In practice, banks often apply their own, more conservative criteria on top of the regulatory minimum, especially at a higher loan-to-value ratio - in that case the rate is usually higher, and property insurance becomes a mandatory condition for the loan to be disbursed.

Conclusion

Current mortgage rates in Bulgaria, as confirmed by BNB data, remain within a reasonably predictable range, and joining the eurozone makes it even easier to compare local loan products with those elsewhere in the euro area. Still, the difference between individual bank offers can amount to thousands of euro over the life of a loan, so it is worth comparing several banks and carefully weighing a fixed rate against a variable one before signing a contract.

If you are considering buying a property in Sofia and would like an objective opinion on how financing fits your budget, the New Key Properties team is here for a free consultation at 0879 826 292.