The mortgage market in Cyprus is a well-developed market. If you want to buy a property in picturesque Cyprus, then now is the right time. Mortgages are offered by all the prominent banks at fixed and variable interest rates in various currencies, mostly Swiss Francs and Euros. Home refinance loans and home improvement loans are also available at attractive rates and terms. Cypriot mortgages are only meant for buying a property in Southern Cyprus residential property region.

The terms and conditions of Cypriot mortgages and home refinance loans are quite similar to those in the United Kingdom. Nevertheless, you might need some assistance from professionals with the application procedure for your loan. It is necessary that you open and activate a bank account in the same bank from which you’re taking out your mortgage.

Principal features of Cypriot mortgages

Given below are the principal features of mortgages in Cyprus:

• Majority of commercial banks in Cyprus are empowered to offer mortgage loans to both locals and foreign nationals. Lenders require that you (the buyer) offer a minimum deposit of 30%, though some financial institutions would finance as much as 100% of your home purchase.
• A Euro mortgage prevents capital loss via foreign exchange should you lease the property. It is essential to explore who you would be leasing your Cypriot property to, what currency they would deposit and tailor your loan in view of that.
• Repayment mortgages can be obtained in any foreign currency like British Pounds, U.S. dollars, Swiss Francs, Euros or Cypriot Pounds.
• You can make payments for your loan either through monthly or quarterly installments.
• For a loan in foreign currency, the maximum loan term is 15 years.
• Mortgage rates in Cyprus are now approximately 4% and it is likely that they might drop more in future to the base rate of the European Central Bank (ECB).
• Life insurance is necessary while obtaining a mortgage in Cyprus.

If you want to raise funds over and above the loan amount sanctioned to you, you might request for a loan to make up for it by utilizing an equity release option on your present home. 

Documents typically needed by Cypriot banks

To buy a property in Cyprus with a Cypriot mortgage, you need to provide the following documents:
• Personal information that include copies of your passport
• Business accounts from your accountant
• Employment agreement and P60s
• Acknowledgement from your bank.
• Filled out personal income declaration form.
• Documents about your current debts, fixed expenditures and information about any other loans that you have.
• Copies of your bank statements for the past three months
• Original document of purchase agreement
• Copies of payment proofs for deposit payments made to the seller of the property
• Acquisition Permit from the District Authorities to permit the loan to be issued by the bank.

Author: Peter Gomes