Financing

Most commercial banks in Cyprus are authorized to offer housing loan facilities (mortgages) to assist potential buyers in the purchase of a property. At PropertyLink we are in a position through all our contacts to help you secure a financing loan in good terms taking advantage our strong business relationships with the majority of local banks in Cyprus.

 

General Information

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.

For a housing loan in Euros, the maximum repayment period can be up to 25-30 years. In both cases, the age of the Applicant plus the term of the mortgage cannot exceed the age of 70. The maximum amount borrowed can be up to 70% of the value of the property to be purchased. The mortgage is to be repaid by monthly or quarterly installments.

 
Documents/Information required by the bank

  • Customer’s profile (Personal details including occupation and duration of your employment contract, if any, with current employers).
  • Passport copies (the page with the photograph and personal information).
  • Statement of existing debt (if any).
  • A reference letter from the bank you maintain an account with.
  • Completion of the ‘Declaration of Personal Income’ form.
  • Evidence of income – either a pay slip or confirmation of remuneration from your employer, a P60 end of year tax certificate or copies of business accounts.
  • Purchase Agreement.
  • Copies of bank statements from the last three months.
  • Copies of payments already made by the Applicant for the property.
  • Instructions to open and activate an account with the bank.

 

General terms and conditions offered by banks in Cyprus

  • Loan amount up to 70%
  • Unlimited amount of loan.
  • Repayable up to 25 years.
  • Interest rate is Libor + up to 2.25%-3.00%.
  • Borrowing can be in a number of currencies – GBP, EURO, CHF, USD, — 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.
  • 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 favor 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.