Home loans in Bulgaria rose 26.4% year on year in the second quarter of 2026, even though the property market is weaker than last year. That is the finding of an analysis by Credit Manager, part of Arco Real Estate.

The mortgages that clients apply for and banks approve average about €140,000 nationwide and between €170,000 and €180,000 in Sofia. Those sums are higher than in 2025, when they ranged from €100,000 to €120,000 nationally and from about €140,000 to €150,000 in the capital.

The company says loans are growing mainly because property prices are rising. Families now have to borrow more from the bank for the same home.

Property deals rose compared with the first quarter but are still fewer than a year earlier. A total of 15,482 contractual mortgages were registered. That is 13% more than in the first three months of the year and 9.8% more than in the second quarter of 2025. Statutory mortgages numbered 2,749, up 22.9% on the first quarter but down 13.5% year on year.

Mortgage lending keeps growing in volume. Consumer loans are up about 14.8% over the year, while business loans are growing more slowly.

Buyers remain active, but they compare more offers, do their sums more carefully and spend more time choosing a property and a bank.

According to the analysis, the company's clients most often take the maximum loan the bank allows instead of putting in more of their own money. The reason is a mix of inflation, high home prices and relatively low interest rates. Their own contribution, meaning the part of the price they pay themselves, averages between 15% and 20%.

In September we reported that, according to National Statistical Institute data for the second quarter of 2026, Burgas is the only city where home prices fell, by 1.5%.

They prefer the longest possible term to keep the monthly payment lower. Some of them plan to repay part of the loan early later on, which would shorten the actual term.