Mortgages in Cyprus - Banks Loans

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Information on Mortgages in Cyprus

All the leading banks offer mortgages in Cyprus for immovable property. Their terms and conditions vary slightly and the best advice we can offer you when negotiating for mortgages in Cyprus is to bargain with them on the proposed deal.

Bank Securities in Cyprus

The more funds, cash, and securities you can offer the bank, the more likely they are to accommodate your instructions. Why is this so in Cyprus? The banks want your business and there is some room to negotiate.

How much Finance will a Cyprus Bank loan?

*Banks offer a 70% loan against the value of the property, subject to an independent valuation and only for first time buyers living permanently in Cyprus for more than 186 days per year. For investment property purchases or buy to let a new law was passed in August 2007 limiting any loan to 60% of the value of the property where the buyer must have 40% as a deposit.

Compare Bank Rates in Cyprus

Consider shopping around to find best deal for you from other banks that offer mortgages in Cyprus.

Make an Appointment

Visit a bank via a pre-arranged appointment and discuss ‘in principle' if you qualify for a loan and the terms and conditions required, based on your anticipated property purchase.

General terms and conditions offered by banks in Cyprus

Loan amount up to 70%, *see above.
Unlimited amount of loan.
Repayable over 15 years but can be increased.
Interest rate is Libor* + up to 2.25%-2.50%.
Borrowing can be in a number of currencies – GBP, EURO, CHF, USD, CYP -- subject to the bank's final approval.
The property valuation cost is payable by the customer irrespective of the outcome of the application. IN ADDITION, all mortgage applications must have a property valuation carried out before the loan is approved.
Other costs: arrangements fees at 1% of the value of the loan and ‘documentation' fees up to C£150.

Securities required by the Bank on Mortgages in Cyprus

First legal mortgage over the immovable property to be purchased, or assignment of the sale contract supported by a bank guarantee from the seller. If the property under development is already mortgaged in favour of the bank, then no bank guarantee will be required.
Assignment of a term life policy, depending on the credit assessment.
Assignment of a fire/earthquake insurance policy.
The borrower will have to pay his contribution towards the purchase price of the property before the release of the loan funds.

Personal information required by the Bank

Copies of your passport and details.
Present employment history, occupation and contract of employment.
Your last three months pay slips.
Existing debits, mortgages and personal expenses.
A reference from your bank.

NOTE: Should you decide to purchase a property, you must open a bank account in Cyprus to transfer your funds to Cyprus. Without a bank account in Cyprus, you CAN NOT proceed to purchase a property.

NOTE: Mortgage lenders will not release the funds for the loan unless you attend an interview in Cyprus, which is normally pre-arranged.

Finally: Please contact a local lawyer in Cyprus before you purchase any property, pay a deposit or agree to any mortgages in Cyprus from any lender.

*London Interbank Offered Rate (or LIBOR) is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the London wholesale (or "interbank") money market.

For further information on Mortgages in Cyprus, please contact us

Click below links for any information page.

Cyprus Property Lawyer - Real Estate Agents in Cyprus - Transfer Tax-fees - VAT

Stamp Duty - Council of Ministers - Bank of Cyprus

Immovable Property Tax - Capital Gains Tax - Residence Permit in Cyprus

Cyprus Income Tax - Work Permit in Cyprus - Overseas Mortgages

Transfer Money to Cyprus

Andrew Sharpe, a British expatriate, has been living in Cyprus since 1977. He is married to a Cypriot and has four children. Thanks to the many years he has lived in Cyprus, he is able to offer a hands-on approach to the many unknowns that may await any prospective resident, providing a very relaxed helpful, information service for property sales. Cyprus property has offices in all the island's major towns, i.e. Nicosia, Limassol, Paphos/Pafos, Protaras, Larnaca/Larnaka and Platres. Details on property finance, property sales, laws on purchasing property in Cyprus. Regular web site updates.

E-mails replied to within 24 hours.

Cyprus Fax/Tel 0035725571715 Mobile 00357 99537985 E-mail andrew@cyprusprop.com

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