Nowadays, obtaining a mortgage loan is a standard and uncomplicated banking procedure. Focusing on the steadily growing volumes of foreign investment in the Cyprus economy (especially in the real estate sector and financial institutions) banks offer a variety of programs aimed at foreign citizens.
Traditionally, the total cost of a mortgage in Cyprus is made up of the following components:
- Interest rate
- Commission charged by the bank
- Amount of recurring payments
- Government fees
- Other payments.
In different banks in Cyprus, the interest rate may differ. It also depends on the term of the mortgage, the size of the initial payment (30-50%). As a rule, the annual rate on a mortgage loan ranges from 1.8% to 3.5% (the interest rate for investors may differ), and the size of the mortgage provided to non-residents covers 60-70% of the value of the acquired real estate. 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 (from €500 to 800)
- For the preparation of the necessary documents (from €50-100).
Types of government fees in Cyprus:
- For registration of encumbrances on real estate (mortgages)
- Stamp duty imposed on documents relating to Cyprus property. The amount of the fee depends on the contractual value of the property
- Payment for the transfer of real estate ownership, which is received by the developer in agreement with the buyer.
Other payments:
- Appraisal cost of the acquired property
- Life insurance of the person taking out the mortgage
- Purchased property insurance.
Required documents for a mortgage loan in Cyprus:
- Real estate appraisal reports (usually made by banks)
- Medical insurance
- Mortgage Insurance Policy
- Real estate purchase and sale agreement
- Other typical documents (title deed for real estate, copy of passport, receipt of bank commission payment...).
Terms of consideration of a mortgage application in Cyprus:
The procedure for considering an application for a mortgage loan usually takes from two weeks to a month. However, if a full package of documents is provided with sufficient confirmation of the applicant's legal income, the time may be significantly reduced.
Banks offering mortgages for Cyprus non-residents:
- Bank of Cyprus
- Hellenic Bank
- Alpha bank
- Ancora bank
- Euro Bank of Cyprus
- SGBC Cyprus
- Housing Finance Corporate.
Still have questions or need classified professional help? On our website, you can always ask any question about Cyprus real estate, or you can ask here (below in the comments section) and get a quick answer.
Read more:
- How to prepare an apartment or house in Cyprus for sale (link)
- Real estate hot deals in Cyprus: where to look and how to avoid fraud? (link)
- Humidity and mold in your Cyprus home (link)
- Renovation in a rented apartment in Cyprus: all the pros and cons (link)
- Sale and purchase of property in Cyprus. Most important things to know (link)
- Types of property in Cyprus (link)
- Recommended appliances and furniture to be in a rental property (link)
- How to look for your dream home in Cyprus (link)
