A Cyprus Mortgage - Financing your Purchase

As the straight-talking property specialist, Aphrodite gives you an overview of the financial products and services available, as well as the real story behind the Cyprus mortgage market.

During the past six years since the Republic's accession to full European Union membership, Cypriot mortgage lenders have come to offer increasingly sophisticated packages to both local and foreign home buyers.

Main Cyprus Mortgages Page
Cyprus Mortgage Information
Cyprus Mortgage Rates
Cyprus Housing Loans (Foreign Currency)
Investor Loans
Bridging Loans
Buy-to-Let Mortgages in Cyprus

A little more about Cyprus' Mortgage Lenders.

These days, and despite the global economy's abysmal state, Cypriot lenders are still offering property loans for up to 70% of a home's value, and with repayment terms of up to forty years. On the forefront of these are the Bank of Cyprus, Alpha Bank, and the Marfin Laiki Bank, with interest rates around 2.50% above EURIBOR.

Foreign currency mortgages in US Dollars, Swiss Franks, British Pounds, and even Japanese Yen are also available from a number of lenders. In the past these loans, which come with maximum repayment periods of just 15 years but tend to feature lower interest rates than Euro-Mortgages, have been popular with investment buyers buying homes for a quick turnaround.

We tell you what others don't...

Being told what products and services are available for you to finance a home purchase is all very well, but what you really need to know is whether any of these are even right for you, and what things you should be looking out for when entering into a loan agreement.

In Cyprus, mortgage arrangements are still relatively easy to obtain, largely due to the Republic's village-like atmosphere. Here, it's just as likely for a bank to give you a home loan because you're dealing with the right property developer, as it is because you happen to meet the necessary requirements.

As we've already mentioned elsewhere, in Cyprus, mortgage practices were a little shaky prior to European Union financial legislation being fully integrated in May 2009. But even today this particular financial sector still has a number of quirks you wouldn't expect to find in any North European country's banking sphere.

Let's face it for a minute; the Republic of Cyprus is a relatively small country, roughly about the size of East Anglia. What's more, it's a country with a very small population of only around 600,000* residents, many of whom are related in some way, shape, or form. This, combined with Cyprus' close-knit social setup, means that there's a better than average chance that a builder will have at least one close relative working in a Bank somewhere.

And that's exactly where you, the customer, have to start watching your step, as the banker will take an active role in trying to sell you a home, and the developer will heartily endorse the less-than-optimal mortgage package you're being offered. Most clients never even suspect they're being double-teamed, because they've been told what a friendly, welcoming, and crime-free place the Republic is.

And that's another thing; in Cyprus, crime isn't quite so uncommon as most online property websites would have you believe. But that is of course another story entirely.

Just remember, it always pays to have someone reliable in your corner...

We don't just want to sell you a property.
We make sure you're safe, satisfied and informed.

* The entire island only has a combined population of around 850,000 residents.