Sofia, August 4, 2025 – The Europe Today: Housing loans in Bulgaria remain among the most accessible in the European Union, with mortgage lending continuing to set new records. Credit consultant Tihomir Toshev highlighted this during an interview with NOVA, where he discussed the country’s lending and savings trends.
Toshev explained that although there has been a minor drop in interest rates on housing loans, it was due to a short-term promotional campaign by one bank. Most major lenders have maintained stable rates. Nevertheless, Bulgaria and Malta continue to offer some of the EU’s lowest mortgage interest rates.
In June alone, housing loans in Bulgaria exceeded 1.2 billion leva, a new record. The number of mortgage contracts rose by 15% compared to the same period last year, reflecting growing demand. Simultaneously, deposits in Bulgarian banks are rising at a similar pace, with total savings now exceeding 92 billion leva.
Commenting on Bulgaria’s forthcoming adoption of the euro, Toshev stated that interest rates are expected to remain stable post-transition. Banks are likely to continue using local indices to determine mortgage terms while gradually aligning with eurozone standards.
Toshev also addressed recent legislative changes passed by Parliament concerning the introduction of a fee-free “main account.” Under this initiative, individuals will be able to make up to ten cash withdrawals and three electronic transfers per month without fees. The reform, part of the Payment Services and Payment Systems Act, was approved unanimously by 150 MPs.
While monthly savings from the new account type may range between 6 and 15 leva, Toshev emphasized its significance for low-income individuals, retirees, and the unbanked. With Bulgaria set to switch to the euro on January 1, 2025, lev balances in these accounts will automatically convert at the official fixed rate of 1.95583. Toshev warned against using exchange bureaus offering lower rates, urging citizens to deposit their cash into main accounts for fair conversion.
The fee-free account, mandated by an EU directive, guarantees every European citizen access to basic banking services. It is tailored for those who previously lacked a bank account and can be used for receiving wages, pensions, and social assistance. The account enables up to ten monthly withdrawals or payments at terminals without charges.
Toshev encouraged all citizens, especially those without current bank accounts, to take advantage of this opportunity, noting it as a practical step toward financial stability and an easier transition to the euro.
