Guidelines for Individuals seeking Finance in Cyprus, Mortgage Fees, and Related Matters
Guidelines for Individuals
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An individual who purchases one property can apply for a mortgage with a repayment period of up to 40 years, provided that at the end of the forty year period he/she will not be over 70 years old.
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If the above buyer needs a mortgage from a Cypriot lender of not more than 60% of the total sales price he/she will have to pay a margin of 2.45% over the Cyprus base rate (currently set at 0.967%).
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The maximum mortgage to be granted by a Cyprus Bank is 80% of the sales price of the property.
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Individuals purchasing a second, third, etc, property will have a maximum repayment period of 15 years as it will be considered as an investment mortgage. for above buyer will be 2.50% above Cyprus base rate if he/she requires a mortgage of not more than 60% of the sales price.
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For lenders in Cyprus, mortgage rates for investment buyers are set at
2.75% above Cyprus base rate if he/she requires a mortgage of over 60% of the sales price.
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Again, the maximum mortgage to be granted by Cypriot lenders is 80% of the sales price of the property purchased.
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Mortgage Arrangement Fees
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In Cyprus, mortgage fees charged by the bank, normally amount to 0.50% of the mortgage amount, paid once at the time of signing the agreement for the mortgage with the bank.
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Additionally, guarantee charges are normally levied at 1% of the amount of the mortgage which is paid once off at the time of signing the agreement for the mortgage with the relevant bank.
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Interest only mortgages are still available in some cases, but only for the purchase of off-plan properties, and only for the period until completion and delivery of the property.
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Interest-only mortgage bear interest on the actual amounts released. For instance, if a property is bought off plan for €150,000 with an approved mortgage of €105,000 and only €45,000 is released at completion of the structure, the mortgage interest will be calculated on €45,000 and not on the whole amount approved (€105,000).
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Other minor costs, relating to document processing fees usually amount to between €70 and €100.
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Current Base Mortgage Rates from the Four Major Lenders in Cyprus
There used to be a time when the Republic's major lenders would post their interest rates on their websites, and we in turn would post them here with regular updates. But it seems something has changed in the banking sector of Cyprus. Mortgage rates are no longer as freely available on the Web as they once were, except on the Bank of Cyprus website.
Frankly we find this a little puzzling, since the Republic's banks are bound by European Union financial legislation, and everything is supposed to be quite open. What's more, we haven't been able to get a straight answer out of anyone about the missing rates. So while we are not usually in the habit of endorsing any one particular company in cases like this, we do believe that the facts speak for themselves. |
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Bank of Cyprus Mortgage Rates are variable
Current base is EURIBOR + 3.00%, dropping to
EURIBOR + 2.50% depending on Package
Visit the Bank of Cyprus Website |
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Up-To-Date Alpha Bank Mortgage Rates
are no longer available online |
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Up-To-Date Marfin Laiki Bank Mortgage Rates
are no longer available online |
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Up-To-Date Hellenic Bank Mortgage Rates
are no longer available online |
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We don't just want to sell you a property.
We make sure you're safe, satisfied and informed.
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Additional Information
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Cyprus Tax Matters
What many British overseas property buyers seem to forget is that there's more to buying a home in Cyprus than arranging a mortgage. Once you've bought the place, the government will come knocking on your door to get its dues.
Although in Cyprus, taxes tend to be quite low compared to many other European countries, it's still a good idea to know what you're getting into, and how much of your hard-earned cash the government expects you to part with each year.
Read more...
Disclaimer. Please note that the loans and rates quoted
on this website are displayed as guidelines only. They constitute
neither an offer nor contract, nor part of same. E&OE
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