Nowadays, getting a mortgage is a standard and uncomplicated banking procedure. Banks in Cyprus offer a variety of programs aimed at foreign citizens, as they see the steadily growing volumes of foreign investment in the Cyprus economy, primarily in the real estate sector and financial institutions.
Traditionally, the total cost of a mortgage in Cyprus is made up of the following components:
- Interest rate
- Bank commission
- Mortgage payments
- Government fees
- Other payments.
The interest rate may differ, as it depends on the term of the mortgage, the down payment (30-50%), as well as the key rate. As a rule, the rate on a mortgage loan is 1.8 - 3.5% (the rate for investors may differ), and the mortgage covers 60-70% of the real estate price bought by non-residents. Most banks issue mortgage loans for a period of 20-35 years, while the age of the borrower should not exceed 65-70 years.
Banking fees may be charged:
- For a loan (€500-800)
- For the preparation of the necessary documents (€50-100).
Types of government fees in Cyprus:
- For registration of encumbrances
- Stamp duty imposed on documents. The amount of the fee depends on the value of the property
- Transfer fee on shares of ownership, which is received by the developer in agreement with the buyer.
Other payments:
- Property appraisal cost
- Life insurance of the person taking out the mortgage
- Property insurance.
Required documents for a mortgage loan in Cyprus:
- A report on the property appraisal (usually made by the bank)
- Medical insurance
- Mortgage insurance policy
- Property purchase and sale agreement
- Other standard documents (title deed for real estate, copy of passport, receipt of bank commission payment...).
How long banks examine mortgage applications in Cyprus?
The procedure for examining a mortgage application usually takes two-four weeks. However, if a full package of documents is provided with sufficient confirmation of the applicant's well-being and income, the processing time may be significantly reduced.
Banks offering mortgages for non-residents of Cyprus:
- Bank of Cyprus
- Hellenic Bank
- Alpha bank
- Ancora bank
- Euro Bank of Cyprus
- SGBC Cyprus
- Housing Finance Corporate.
Do you have questions or need classified professional help? You can always ask any question you are interested in about Cyprus real estate on our portal, or in the comment section under this article.
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