Mortgage and loans on Cyprus

Mortgage loan

There are quite favorable conditions on Cyprus concerning real estate acquisition.

In order to receive a mortgage loan to purchase real estate on Cyprus, the purchased property is the collateral. As in most countries in the EU, in order to receive a mortgage loan, it is necessary for the borrower to provide documents proving your capacity, i.e. ability to pay.

Prior to applying for a mortgage, you need to define its basic parameters.

Size. Maximum loan size amounts to not more than 50-70% of the value of the property, as stated in the agreement. Accordingly, initially the borrower must pay a downpayment of at least 30-50% of the value of the property.

Term. Minimum time period of the mortgage loan is 10 years. The maximum time period is determined by the following formula: age of the borrower subtracted from 65. The loan can be repaid ahead of schedule, this, however, is subject to a fine.

Currency. The majority of mortgages are issued in euros, it is possible to receive the mortgage in US dollars.

Mortgagerate. Upon receiving the loan, you may choose one of several mortgage payment structures. The rate can be linked to the internal bank rate or to Euribor, an interbank rate. In some payment structures, the rate is recalculated every 6 months, in others, it is fixed for the first couple of years. If you are a permanent resident of Cyprus, the mortgage rate will be lower. It is possible to pay the mortgage payments monthly or quarterly.

Mortgage application check list:

  • Personal details of the applicant (ID, employment history, confirmation that the applicant is not wanted by the police)
  • Income statement
  • Sale and Purchase Agreement
  • Copy of payments processed for the real estate purchase
  • Statement showing a stable income
  • Employer’s recommendation letter
  • Certificate from the bank, where the borrower has an account
  • Recent bank statement for the last 3-6 months
  • Copy of the architectural plan of the property
  • Credit history
  • Copy of the international travel passport

The application checklist is an estimate and can vary depending on the bank.

Installment from the developer

The maximum installment period is about 24 months. However, there are situations, when a buyer wants to receive  installment for a longer period of time. The conditions and the possibility of receiving installment are discussed individually per project.

Subscribe to our newsletter