Ksavva

Mortgages

The mortgage market in Cyprus is well established to offer financing of a property purchase. Mortgages are widely available from a variety of high street banks and the terms and conditions vary from bank to bank. Most commercial banks in Cyprus are authorized to offer mortgage facilities to locals as well as foreign nationals and can be acquired in Euro as well as a variety of foreign currencies. 

Documents Normally Required by Banks in Cyprus:

  • Client Profile: Personal details, including copies of passport (page with photograph & personal information)

  • Evidence of income: 3 months pay slips or confirmation of remuneration from your employer, employment contract and P60s, 3 years audited accounts from your accountant or copy of most recent tax clearance certificate.

  • Debt information:  Documentation regarding existing debts, regular outgoings and details of any other mortgages or loans outstanding.

  • Additional income:  Evidence of additional income such as tenancy agreement for rental property, Certificate of bonus etc.

  • Bank reference:  A reference letter from the primary bank you use in your home country

  • Income declaration:  Completed personal income declaration form.

  • Purchase agreement: Original copy of purchase agreement/sales contract

  • Statements: Copies of your bank statements from your current account for the last 3-12 months (depending on specific bank requirements).

  • Deposit Proof:  Copies of receipts for deposit payments made for the property and proof that deposit was paid by client(s) own funds

  • Local Account: You will need to open and activate an account in the same bank you obtain your mortgage from to be able to transfer money to Cyprus and set up payment (direct debit/standing order etc).

  • Application forms: Completed and signed loan application forms and declaration of personal and financial facts

Loan Duration:

  • Up to 40 years (maximum borrower age 70 years old)

  • Up to 15 years for investment purposes

Initial Contribution:

Minimum deposits required are normally 30% of the purchase price of the property or 40% for investment purposes. The more security you can offer will increase the willingness of the bank to lend.

Additional Charges:

  • Arrangement fees:   1% of loan value for 1st property (1.5% for investment)

  • Documentation fees: €70-€250

  • Valuation fees:  €85-€500

  • Stamp fees: 0.15% up to loan amount of €170,816.14 / 0.20% loans over the  amount of €170,816.14

  • Mortgage fees:  1% on mortgage value

  • Grace period for interest & capital: Up to the delivery date according to the contract of sale - Max. 2 years

Interest Rate

Normally, Libor/Euribor rate + bank margin (%). Various options are available for fixed rate periods, interest only periods and other incentives. Please contact/visit any Cyprus bank(s) of your choosing to receive the most current rate and mortgage deals available. 

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