Mortgage in Cyprus

18.02.2019 15:44

A Cyprus mortgage agreement falls under two categories: Investors and Personal Banking [including mortgage in Cyprus for foreigners]. This article will go through required documents for both, excluding fees for Investors [as bank rates depend on business type and activity].

General Information

The Cyprus mortgage process is a standard bank transaction nowadays. With the rise of tourism and real estate investments, Cypriot banks have prepared various mortgage plans aimed at non-residents, who wish to purchase property.

Generally, the total cost of a mortgage loan consists of :

  • Interest rate [variable / fixed / both]
  • Initial bank fee
  • Installment amount
  • Government fees [i.e. mortgage fee / stamps]
  • Third party fees [i.e. property valuation]

Cyprus mortgage schemes may not be for you! Check the alternative loan solutions. It is recommended to directly contact the bank and ask about their other loan schemes aimed to benefit non-residents / permanent residents. Please note the bank list below.

Mortgage rates and fees in Cyprus

Cyprus mortgage rates depend on the bank of choice, their base rate, the initial loan amount, the daily balance, and the length of repayment.

Typically, expect to see the marginal interest rates ranging between 2.10% - 3.75 % and the Annual Percentage Rate ranging between 2.23% - 3.45% in Cyprus mortgage schemes [differs for investors].

Most bank loans allow a 20 to 35 year-payment, and offer up to 50% - 70% of the initial purchasing price. Debtor’s age should not exceed 65 - 70 years [this depends on the bank]. The following are typical fees:

Initial Bank Fee:

  1. Bank Arrangement Fee [may range between €500 and €800]
  2. Documentation Fee [may range between €50 to €100]

Government Fee:

  1. Mortgage Registration [€30 paid to the Land Registry]
  2. Stamp Duty [depends on the document type and whether the bank is completing the service, typically, the bank services are more expensive]
  3. Transfer Fees paid to the developer [depends on the mutual agreement]

Third Party Fee [recommended to ask the agent]:

  1. Property Valuation Services
  2. Life Insurance payment
  3. Home Insurance payment

Documents Required prior to loan agreement:

  1. Property Valuation Certificate
  2. Life Insurance
  3. Home Insurance
  4. Contractual Agreement for the purchase of the property
  5. Other standard documents as per bank [copy of passport, photos, bank payment slip etc…]

 

Mortgage in Cyprus for Foreigners

Non-resident foreigners in the Cyprus mortgage scheme should ask if the bank offers an overseas payment method [if planning on residing abroad during the loan process] to avoid excess transfer fees.

Mortgage in Cyprus for foreigners is often referred to as “Holiday Home” scheme, aimed to benefit non-residents.

For EU citizens, an alternative loan solution may be local banks in their member states that offer offshore loans, or EU banks such as the Mortgage Bank of EU.

The following are banks that offer mortgage in Cyprus for foreigners:

  • Bank of Cyprus
  • Hellenic Bank
  • Alpha Bank
  • Ancora Bank
  • Euro Bank of Cyprus
  • SGBC Cyprus
  • Housing Finance Corporate

Check to see if your bank has a branch in Cyprus.

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