Postbank

Postbank is launching a housing loan with a fixed interest rate for the first 10 years in euros on the Bulgarian market. With its new financial offering, the institution reaffirms its customer-oriented approach and provides consumers who plan to purchase property with the opportunity for long-term security and predictability for the future. The loan can be up to EUR 350,000, with a maximum term of 35 years and can be used for purchase, renovation, construction, or finishing activities for housing, as well as for refinancing other obligations.

Postbank's housing loan in euros with a fixed interest rate for the first 10 years provides an optimal solution to the specific expectations of Bulgarian consumers to be able to plan their expenses in the long term. Its creation is driven by increasing interest and inquiries from the bank's customers for a housing loan with a fixed interest rate and is in line with the bank's long-term strategy to provide value-added financial solutions that meet the needs of consumers, the market environment, and changing trends. The new financial solution provides predictability for the monthly installment for the first 10 years, allowing customers to manage their family budget without worrying about changes in the applicable interest rate for the respective fixed period. It offers the necessary peace of mind and flexibility in repayment, and its introduction to the market is in response to consumer demand for more security.

According to Postbank's data, the development of the mortgage market in recent years continues its upward trend, with the bank reporting a 24 percent increase in the volume of housing loan applications in the first half of the year compared to the same period last year. Customers are consistently directing their preferences towards higher quality, larger, and more spacious homes, with increased interest in properties with excellent features, in areas with better infrastructure and close to green areas. Statistics also show that demand is primarily concentrated in the country's five largest cities, which account for approximately 80 percent of housing mortgage loan applications at Postbank. These cities are Sofia, Plovdiv, Varna, Burgas, and Ruse, with Sofia unquestionably dominating this ranking. The institution's data also indicate that in the first half of 2023, the average size of requested housing loans increased by 15 percent, and the average preferred term for consumers was 25 years. The client's own contribution to the purchase of real estate remains, with average values of this indicator at 33 percent.

"From the position of one of the market leaders, at Postbank, we constantly strive to develop and enhance our rich portfolio of products and services, as well as to offer attractive financial solutions in line with current market trends and consumer expectations. This is part of our long-term strategy, and our main focus continues to be on providing an excellent customer experience and achieving maximum customer satisfaction. With our latest offer for a housing loan in euros with a fixed interest rate for the first 10 years, we provide the necessary predictability and peace of mind to our clients, allowing them to 'lock in' their interest rate for a long period of time and thus guarantee the security that their monthly installment will not change due to any fluctuations in the market and interest rates," commented Postbank.

Postbank's new housing loan offer comes with a large financing amount - up to EUR 350,000 and a maximum repayment term of up to 35 years. After the first 10 years of the loan term, a variable annual interest rate is applied, formed by the sum of a reference interest rate plus a fixed markup, which is negotiated individually with the client. The reference interest rate used is the PRIME reference interest rate of Eurobank Bulgaria AD for secured loans in euros, with full information available on the bank's website.

In addition to the advantage of the fixed interest rate, with the new housing loan offer, clients can also take advantage of the option Flexi offered by the bank, allowing borrowers to decrease or increase the amount of their monthly installment according to the specified conditions.

Postbank's new housing loan offer is already available in the bank's branches as well as in the specialized network of over 30 housing loan centers throughout the country. In these centers, customers can receive professional advice on the product's terms, other housing mortgage loans offered by the bank, and complete information on the application process. Consumers who prefer to receive information about application conditions in a digital environment can do so through the bank's Online Housing Loan Center.