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Participants:
- Rumen Velichkov – senior consultant, Residential Services, Colliers International
- Lachezar Bogdanov, macroeconomist and managing partner in Industry Watch
- Georgi Trendafilov, consultant in Creditland
- Stanislava Videva, manager Sales dept., Mortgage Lending Division, Postbank
Discussed topics:
- How did the mortgage lending market develop during the last few months?
- When applying for a mortgage loan, what are the most important factors that banks take into consideration?
- What are the key factors to pay attention to when applying for a house loan?
- What do we have to do before signing the preliminary agreement when buying a new residential property?
- Clients’ preferences for the residential property type?
Key messages:
- During the last few months banks became more active, announcing new mortgage loans promotions, reflecting on the residential real estate market
- Banks are more flexible but remain conservative in their house lending conditions. They prefer low-risk clients with secure income, working in stable companies.
- Currently banks finance up to 70-80% of the property’s market value. Clients have to be prepared to self-finance part of the price of the property they are buying.
- Before buying a residential property, clients need to negotiate in advance their financing, if possible signing a preliminary agreement with the bank.
- The price is not the most distinctive factor when selecting the residential property, rather the quality of the construction, the reputation of the developer and their previous projects. The current trends are to buy completed properties (with Act 15 or 16).
- In 2010 we can expect normalization of the residential real estate market and more active bank financing. The most active buyers will be the ones in real need of a new property and with cash.
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