Russian Federation

Cyprus Mortgage Information

Cyprus Mortgage Information

Cyprus: features of the national mortgage

Russians, like other citizens of third countries, must obtain permission from the Cypriot authorities for the transaction. It takes a long time (up to a year), but you have the right to conduct a transaction before you have this permission in your hands. If you do not have problems with the law in your own country and abroad, then you can consider obtaining this permission as a formal procedure. To obtain a mortgage loan, something else is much more important - your developer has an agreement with a specific bank. This has its advantages: firstly, the developer is interested in selling, so he acts as your guarantor, and secondly, when buying an unfinished object, you can get a loan deferral.

The bank will provide a mortgage in Cyprus The easiest way to get approval for a loan if your down payment is at least 50% of the value of the property. However, existing mortgage lending programs allow you to get a loan in the amount of up to 70% of the value of the property - especially if you are dealing with a large reliable developer.

General information about mortgages in Cyprus

  • The maximum loan amount is 300-500 thousand euros (or a similar amount in US dollars, pounds sterling, etc.).
  • Standard loan terms are from 10 to 40 years, and at the time of payment of the last installment the borrower's age should not exceed 65–70 years
  • The rates are usually floating, fluctuating in the range of 4.7-7.2%. There is a tendency to decrease them
  • The amount of monthly payments on the loan cannot exceed 30% of your total income
  • Loan payments - monthly or quarterly (depending on the specific agreement)
  • Early repayment - perhaps, and sometimes without a penalty - especially if the loan amount was small and the rate was floating.

Mortgage in Cyprus The term for consideration of an application for a mortgage in Cyprus is 1-2 months. By default, the mortgage loan is provided in euros (this is the official currency of Cyprus), but in some cases it makes sense to consider a loan in dollars. Additional expenses on the loan are as follows: commission for granting a loan - 1% of its amount, paperwork - from 100 to 150 euros, life insurance of the borrower and insurance of the property - from 500 to 1800 euros per year (as the debt is paid off, these payments will be shrink). Stamp duty and appraisal of the loaned object will also cost a certain amount.

Mortgage in Cyprus - required documents

The list of required documents differs little from that in many other countries. You need to prove your identity, present a sales contract, provide proof of solvency - and in addition, open a personal account for at least 200 euros in the bank where you intend to obtain a mortgage.

  • Mortgage Loan Application
  • Copy of passport and international passport (for residents - a copy of the residence permit)
  • Certificate of income for the last three months
  • Bank statement for the last 6 months (if you have other loans, then for 12 months)
  • Latest tax return
  • If you have real estate, incl. abroad - documents confirming the right of ownership
  • Sale and purchase agreement signed and registered with the Department of Lands

When purchasing real estate in Cyprus under the mortgage lending program, be sure to use the services of a professional lawyer with experience in this area - this will not only minimize your risks, but also save time.