Housing loans in our country grew by over 1.4 billion euros in five months

Housing lending remains one of the most dynamic segments of the financial system in Bulgaria in 2026. In the first five months of the year alone, the granted housing loans have grown by over 1.4 billion euros, according to the official data of the Bulgarian National Bank. This increase occurs against the backdrop of double-digit annual growth in loans to households and a steady rise in deposits, which outlines a strong start to the year amidst relatively low interest rates and high demand for financing.

Strong start to 2026: January–February
At the end of January, the total volume of loans to households and non-profit institutions serving households reached 28.948 billion euros – a growth of 20.7% on an annual basis. Housing loans are precisely the main driver of this increase: at the end of the month, they amounted to 17.037 billion euros, with an annual growth of 27.9% compared to January 2025. Consumer loans also grew, reaching 10.958 billion euros, or 12.8% more on an annual basis.

The trend continued into February. Loans to households reached 29.341 billion euros, again increasing by 20.7% compared to the same month of the previous year. Housing loans at the end of February were already 17.299 billion euros, with an annual growth of 27.8%, and consumer loans – 11.087 billion euros, an increase of 12.8% compared to February 2025. Household deposits also grew significantly – to 55.782 billion euros, with an annual growth of 20.3%.

Growth continues: March–April
According to data from the monetary statistics of the BNB, in March and April 2026, loans to households maintained a high growth rate. At the end of April, loans to households and organizations serving them exceeded 30.405 billion euros, which is 20.8% more than in April 2025 – practically the same annual growth recorded at the end of March.

What is significant in this period is that the growth in housing loans started to slightly slow down, while consumer loans accelerated. At the end of April, housing loans were 17.953 billion euros, with an annual growth of 27.1% (against 27.5% in March), and consumer loans continued to increase their share in the overall structure. The average interest rate on housing loans remained around 2.45%, and the annual percentage rate of charge (APR) hovered around 2.78%, which kept financing relatively accessible for home buyers.

Over 1.4 billion euros in new housing loans for five months
A comparison between the beginning of the year and the end of spring clearly shows the scale of the growth in housing lending. Between the end of January (17.037 billion euros) and the end of April (17.953 billion euros), the volume of housing loans increased by nearly 916 million euros. Preliminary data for May, which follows the same trajectory, show that for the first five months of 2026, the total growth already exceeds 1.4 billion euros, measured against the starting values for the year and the analogous periods of 2025.

On an annual basis compared to the spring of 2025, an increase of the order of 27–28% means that the share of housing loans in total household lending continues to grow. With nearly 18 billion euros in mortgage loans at the end of April and over 30 billion euros in total household loans, housing financing occupies an increasingly larger part of the banking system's exposure to the population.

Why housing loans are growing so fast
A combination of several factors lies behind the strong growth of housing loans in 2026. Firstly, there are the persistently high levels of savings: deposits of the non-government sector reached 83.719 billion euros by the end of January – 67.9% of GDP and an annual growth of 17%. Household deposits exceeding 55 billion euros as of February show that significant free resources remain in the banking system, with relatively low interest rates on savings.

Secondly, there are the relatively low interest rates on mortgage loans, which remain at around 2.45% on average, despite the change in the international interest rate environment. In the context of rising rents and stable interest in real estate, this makes purchasing a home through a loan a preferred option, especially for urban households. Thirdly, policies for energy efficiency and renewal of the housing stock – including renovation programs – further stimulate the demand for financing.

Risks and balance: loans versus deposits
The BNB and analysts continue to monitor closely the balance between loans and deposits as a key indicator of the state of the financial system. The growth of housing loans of over 27% annually is high, but it occurs in parallel with an equally strong growth in deposits – over 20% for households – which supports the stability of bank liquidity.

Still, the rapid increase in mortgage financing brings to the fore questions about the debt burden of households and their sensitivity to future changes in interest rates. If the international interest rate environment changes more sharply, today's low interest rates could gradually rise, which will increase the cost of servicing loans. Furthermore, the growth in property prices, supported by mass lending, carries the risk of "overheating" the market if incomes fail to catch up with price levels.

What the growth of over 1.4 billion euros means for households
For households, the growth of housing loans of over 1.4 billion euros in five months is a double signal. On one hand, it shows that many families manage to finance the purchase or renovation of a home by using relatively favorable conditions. On the other, this means an increase in the debt burden and a greater dependence on the stability of incomes and interest rates.

For banks, the segment remains strategically important – housing loans are relatively well-collateralized and generate stable income, but require careful risk management, especially with continued double-digit growth. For regulators and economic analysts, the main task is to monitor whether credit expansion remains within the limits of sustainability and whether household incomes and the labor market can support this pace without the accumulation of systemic risks.

By the middle of 2026, the picture is clear: housing loans in Bulgaria continue to grow rapidly, over 1.4 billion euros in just five months, with a parallel strong increase in deposits and stable interest rates. Whether this growth will remain sustainable through the second half of the year will depend on the economic environment, bank policies, and household behavior – but for now, housing lending remains one of the brightest drivers of the financial market in our country.