Buying your first home? 15 things you need to know

When we bought our first apartment, we were prepared for the price and the payment. We weren't prepared for everything else — dozens of documents, inspections, fees, insurance, and deadlines that nobody warned us about in time.

This article is the guide we wished we had then. Fifteen specific things, ordered in the sequence you'll need them.

Before you start searching

1. Calculate your real budget — not just the payment

Most people start with the question "what will my payment be?". The more important question is "how much cash do I need before I move into the property?". For a EUR 200,000 apartment in Sofia, the math looks like this:

• Down payment: minimum 15% = EUR 30,000 (per BNB rules from October 2024)
• Acquisition tax + notary + registration: ~3.5% = EUR 7,000
• Renovation (mid-level): EUR 15,000 – 30,000 (EUR 100–400/m² for 75 m²)
• Reserve fund (6–12 months): EUR 5,000 – 10,000

Total cash before keys: EUR 57,000 – 77,000. That's 28–38% of the property price. If this number surprises you, it's better to know now than at the notary.

2. Get pre-approved by a bank

Before you start touring properties, go to a bank (or credit broker) and find out what loan you'll actually get. The BNB rules are clear: maximum 85% LTV (financing relative to value) and 50% DSTI (payments must not exceed half of your income). Maximum term: 30 years.

Pre-approval gives you a realistic framework and shows the seller you're a serious buyer.

3. Consider a credit broker — it's free

Credit brokers compare offers from 8–12 banks, prepare your documents, and guide you through the entire process. Most importantly: for the client the service is usually free — the bank pays the commission. By law (EU Mortgage Credit Directive), the broker is required to disclose how they're paid.

Check whether they're registered in the BNB register at bnb.bg. For a first-time purchase, it's worth it.

During the search

4. Check the property register — mandatory

The encumbrance certificate from the Registry Agency is the most important document you'll request. It shows whether the property has any mortgages, attachments, property rights, easements, building rights, pending cases, or long-term leases.

Critically important: encumbrances "follow" the property, not the owner. If you buy a property with an attachment — it's yours. Cost: EUR 10–20, turnaround: 3–7 working days. Can be checked online via eGov.bg with an electronic signature, but the online check is informational only — not legally binding. Since March 2018, certificates have a unique 12-character verification code.

5. The cadastre is a separate check

Many people confuse the property register with the cadastre. They are two different systems:

• Registry Agency (registryagency.bg) — legal status: ownership, encumbrances, restrictions
• AGCC (icadastre.bg) — physical boundaries: area, location, identification

You need both. The sketch/scheme from AGCC costs EUR 15–30 and proves the property physically exists with defined boundaries.

6. Visit the property with a professional

For older buildings (over 15–20 years), bring a construction engineer to assess the structure, plumbing, and electrical wiring. One inspection by a specialist costs EUR 100–300 and can save you EUR 10,000+ in hidden repairs.

7. Check the building management

Ask about the monthly maintenance fee (condominium ownership) — it varies from EUR 30 to 300/month depending on the building type. Find out about ongoing repairs, the "Renovation and Renewal" fund, and planned facade renovations. Minutes from general meetings are public for owners — request them.

8. Research the neighborhood

Visit at different times — morning, evening, weekday, and weekend. Check the noise, infrastructure, public transport, and parking. Important: parking spaces are often sold separately — from EUR 10,000 to 30,000. Also check for planned construction nearby with the municipality.

The deal

9. Plan a realistic timeline

With a mortgage, the entire process takes 6–8 weeks, and in more complex cases — up to 3 months:

• Submission and processing at the bank: 5–10 working days
• Property appraisal: 3–5 working days
• Legal review by the bank: 3–5 working days
• Final approval: 3–5 working days
• Signing + notary: 1–2 days
• Loan disbursement: 4–5 working days

Without a mortgage: 2–4 weeks. After the deal, you have 2 months to register with the municipality.

10. Know which documents are needed

The seller must provide:

• Notary deed (proves ownership)
• Sketch/scheme from AGCC (EUR 15–30)
• Tax valuation certificate (EUR 10–30)
• Encumbrance certificate (EUR 10–20)
• Marital status certificate (EUR 5–10)
• Declaration under Art. 264 of the Tax-Insurance Procedure Code (no public debts)

For a mortgage you need:

• Employment contract + payslips (last 6 months)
• Bank statements (last 6 months)
• Tax declarations (last 1–2 years)
• ID card
• Proof of source of funds (for amounts over ~EUR 5,100 under the Cash Payments Restriction Act)
• Preliminary purchase agreement

11. Budget the deal expenses

For Sofia on a EUR 200,000 property:

• Acquisition tax: 3% = EUR 6,000 (BGN 11,734)
• Notary fee: ~EUR 800 with VAT (per the regressive tariff)
• Property register registration: 0.1% = EUR 200

Total: ~EUR 7,000 — or about 3.5% of the price.

12. Understand the difference between fixed and variable interest

After Bulgaria joined the eurozone (January 2026), most banks switched to EURIBOR-based rates. The average rate as of December 2025 is 2.69%.

• Fixed (1, 3, 5, or 10 years): higher, but predictable. After the fixed period it becomes variable.
• Variable (EURIBOR + margin): lower at first, but carries risk if rates rise.
• Internal reference rate: some banks still use their own base rate — less transparent than EURIBOR.

On a 25-year loan of EUR 170,000, a difference of 0.5% in the rate means ~EUR 50/month or ~EUR 15,000 total.

After the purchase

13. Property insurance is mandatory

With a mortgage, property insurance is a mandatory condition for the entire loan term. It covers fire, flood, natural disasters. Cost: 0.1–0.3% of the property value annually, or EUR 200–600/year for a EUR 200,000 property.

Don't accept the bank's first offer — you have the right to choose your insurer. The difference between offers can be 30–40%.

14. Life insurance — not mandatory, but there's a cost if you decline

Banks offer a 0.2–0.5% lower interest rate if you take out life insurance. The cost of the insurance is 0.3–0.7% of the loan amount annually. Do the math: if the savings on interest is greater than the cost of the insurance, it's worth it. In most cases for loans over EUR 100,000 — it's worth it.

15. Build a reserve fund of 6–12 monthly payments

The last and perhaps most important advice: before you buy, run a stress test. What if one of you loses your job? If payments rise by 30%? If you have an unexpected expense?

A reserve fund of 6–12 monthly payments + expenses is the minimum protection. For a family with a EUR 800/month payment and EUR 600/month in living expenses, that means EUR 8,400–16,800 set aside.

If the stress test shows you can't survive both scenarios — either the property is too expensive, or the timing isn't right. Better to know it before than after.

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Want to see the full picture for your property? Use our calculator — it calculates all costs, runs a stress test, and shows whether you can afford it.