Russian Investors and the Mortgage in Europe

Russian Investors and the Mortgage in Europe

In a number of European countries, banks are ready to issue mortgage loans to foreigners, including Russian citizens. In today’s article, we’ll stop on Bulgaria and Germany, and try to figure it out what expects foreign investors in these countries.


Last year Bulgaria became one of the most popular destinations for Russian investors. The real estate in the country is relatively inexpensive, and a house by the sea is a fairly liquid object. Compared with other European countries, it is expensive to apply for a mortgage in Bulgaria. Here, Russians have to put up with high rates: if for citizens of the country they are 3-3.5%, then foreigners are usually offered 7-14% per annum.

But even in spite of such conditions, due to the low cost of objects, Russians continue to buy Bulgarian real estate. Especially since banks are willing to finance up to 60-70% of the value of the object, and you can repay the loan for 20 years. The last payment must be made to 60 years of the borrower, if it is female, or up to 65 years, if it is a man. Bulgarian banks are ready to provide a loan of up to € 100,000 considering the value of  the property, this will be enough. In Bulgaria a square meter in the center of the city costs an average of € 1,063.


If a foreigner makes out a mortgage in Germany for the first time, the bank will most likely finance no more than 50% of the value of the property. And if you already have apartments in Germany and even more so you have already managed to repay at least one mortgage loan in this country, then you can count on financing 60-70% of the value of the object.

The bank usually provides a loan for a period of 5 to 30 years, and by the end of the loan period the applicant must be no more than 65 years old. The floating rate on average is 3-4.5% per annum, while the fixed rate may exceed 5% per annum. Payments, as in other countries, should cover no more than 35% of the borrower’s income per month. Mortgages are more likely to be approved for properties ranging from € 300,000, and the cheaper real estate is, it is to get a loan. A square meter in the center of German cities will cost € 4,758.

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