Whilst paying in cash is always an option for those with sufficient funds, for many people a mortgage financing option is the preferred method of buying a property. Most Cyprus mortgages are provided by commercial banks based on the Island. A Cyprus mortgage, also often called a housing loan facility assists potential buyers in the purchase of a property.
Strong Commercial Links to Mortgage Providers
Our team and partners have strong commercial relationships with the majority of banks in the country and are often able to help our clients reduce their financial costs and speed up the application process.
Cyprus Mortgage Terms and Conditions
Mortgages are usually made in Euros. The maximum repayment period is 25 years, but shorter terms can be arranged. Mortgages must be completed by the age of 70. You will need a 30% deposit. Mortgages are repaid by monthly or quarterly installments.
Financial Securities with Cyprus Mortgages
Most properties (particularly off plan properties) will require a financial security. Our partners have negotiated financing packages that meet these requirements and result in substantially lower costs. This will include:
- Assignment of the Purchaser’s rights deriving from the Contract of Sale in favour of the bank.
- A corporate guarantee provided by the developers to the bank as a security for the clients’ loans.
- Part mortgage of the land where the project has been built.
Documents/Information Required by the Bank
When applying for a Cyprus mortgage, the bank may ask to see the following information. It will speed the application process if you ensure that this information is easily available.
- 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 in your home country.
- Completion of the ‘Declaration of Personal Income’ form.
- Evidence of income – either a pay slip or confirmation of remuneration from your employer such as an end of year tax certificate or copies of business accounts if you are a business owner.
- 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.