Until recently, mortgages in Cyprus were quite uncommon
When it comes to mortgages in Cyprus, please note that there are no building societies like in the UK. Virtually all mortgage loans are issued by the banks.
Mortgages in Cyprus up to 90%
This makes life easier in some respects but there are certain points to be noted when seeking mortgages in Cyprus, but buying a property in Cyprus need not be painful.
Mortgages in Cyprus are dramatically changing year by year. Prior to entry to the EU mortgage loans were very rare. However, since then, the situation of mortgages in Cyprus has changed to the point that some banks are offering mortgages with as little as 10% deposit with many additional features including up to 35 years repayment. However, the norm is still a 30% deposit with the mortgage over a 15 year period or up to 70 years of age.
|
Where you are a cash-buyer or need a mortgage, find properties here.
|
The main point to realise is that there cannot be two mortgages on the same plot of land or property such as in the UK. Therefore, the developer has to release any loan he has on any land for your mortgage to be able to be applied. This has an additional advantage to you the purchaser in that the bank concerned has already done its due diligence on the title of the land, thereby making a purchase very safe. Again though, there is a twist in the tail as the bank will want a 1.8% of value of the loan to be paid as a bank guarantee to ensure that the title deeds will be forthcoming at completion of the property. This will ensure that the bank is guaranteeing the ownership of the land and the property.
In addition, the government also requires a 1% fee of the value of the loan as mortgages in Cyprus have to be lodged with the government, again assuring you the purchaser of financial security.
The bank charge a 1% arrangement fee for the mortgage.
Note that all these fees can be added to the mortgage total.
Therefore with the developer having to work so closely with the bank, it makes sense to arrange mortgages in Cyprus with the same bank as the developer.
We are able to advise as to which developers are able to offer the best terms for example if a smaller deposit is available only, or if deferred terms are required for investment purposes.
Just one example from a particular developer:
1. 15% deposit from own funds
2. charges can be included in mortgage ( except lawyers costs )
3. electrical package can be included in mortgage
4. furniture package can be included in mortgage
5. Interest rate of under 3%
6. Repayments up to 35 years ( age restriction of 70 years )
7. NO payments til delivery
8. 5 year interest only repayment period available at beginning
9. NO early repayment penalties
10. 5% balance from own funds on delivery
11. Rental management available.
12. 3 years to delivery
This particular developer is able to offer a 15% deposit scheme with an 80% mortgage and a 5% balance being payable at completion / delivery of the development.
In addition, this mortgage can be up to 35 years ( or up to 70 years of age )
It can be in Swiss Francs ( safest currency in Europe ) at an extremely favourable rate of approximately 3% interest. The bank margin rate of 1.75% plus LIBOR ( London Inter Bank Rate )
The mortgage can be drawn down at each building stage rather at onset ( this is checked by a bank surveyor before draw down ) and the relevant payments can even be deferred until delivery, with the additional benefit of all the interest being deferred until delivery.
In addition, the first five years can be interest only, the next 5 years at interest and capital, and the remainder of the term of interest plus capital plus postponed capital sum due from the first five year term.
With a 3 year build, the opportunity to make some serious money from a small investment is very evident, especially as this particular developer includes in their standard package the air conditioning, a completely fitted kitchen with all appliances and granite worktops.
This development may not suit all types as it is being built like a very large 5 star holiday resort at premium prices, but the mortgage facilities reflect this of course.
Another example of mortgages in Cyprus maybe:
1. 30% deposit from own funds
2. 70% mortgage of up to 15 years
3. Low interest rates
4. NO early repayment penalties
5. Some fees and costs can be included if required
This may suit a purchaser who requires the property to live in ( leaving the UK ) if they are able to provide an income in Cyprus or maybe someone who intends to leave and retire and sell up in the UK. It gives them the chance to put the deposit down and plan the sale of their UK property from which they then pay off the Cyprus mortgage when arriving in the country without having to pay early repayment penalties.
This mortgage type gives the purchaser more flexibility on finding a property in a smaller development or having an individual villa built for example.
In other words, Aphrodite Property Sales can help you find mortgages in Cyprus to suit your own particular requirements.
Click here to return to the main Information
about Cyprus page
|
Search
for Properties 
