Mortgages in Cyprus
All the leading banks offer mortgages in Cyprus to purchase immovable property (House - Villa -Apartment etc). 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 for Mortgages in Cyprus
The more funds, cash, and securities you can offer the bank, the more likely they are to accommodate your mortgages requests. Why is this so in Cyprus? The banks want your business for sure and there is some room for you to negotiate with you holding a good level of securities.
How much Finance will a Cyprus Bank Loan You?
*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 or buy to let purchases, 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. Addditionally with the present world crisis 2009, banks are more demending when mortgages are applied for in Cyprus, requiring you to be more efficient and professional with your mortgage appplication.
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 €250.
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, (the same bank you are applying to for the loan) 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.
See Also: Cyprus Property Lawyer | Cyprus Estate Agents | Cyprus Transfer Fees | Cyprus Property VAT | Cyprus Stamp Duty | Cyprus Council of Ministers | Cyprus Property Tax | Cyprus Capital Gains Tax | Bank of Cyprus | Mortgages in Cyprus | Purchase Contract | Cyprus Land Registry | Cyprus Chartered Surveyors | Making a Cyprus Will | Cyprus Title Deeds | Cyprus Certificate Final Approval