Mortgages In Cyprus

The mortgage market, particularly in Southern Cyprus, is well developed and you should have no problems financing your property purchase. Here is general guidance to inform you of what to expect in both halves of the island.

Southern Cyprus

Mortgages in Cyprus are widely available and the terms are similar to those in the UK. However, you may require some help from our experts with the process of applying for your mortgage. We will gladly give independent advice and assistance with your mortgage application from a Cypriot bank.

Main Characteristics of Mortgages in Cyprus

  • Most commercial banks in Cyprus are authorized to offer mortgage facilities to locals as well as foreign nationals. Loans are based on the purchaser providing a minimum deposit of 30%, although today some financial institutions will fund as much as 100% of your purchase.
  • Repayment mortgages can be acquired in any foreign currency, eg. U.S. dollars, British pounds, Euros and Swiss francs, or in Cypriot Pounds.
  • A Euro mortgage avoids capital loss through currency exchange should you rent out your property. It is important to research who you will be renting your property in cyprus to, what currency they will be paying in and plan your mortgage accordingly.
  • For a loan in foreign currency, the maximum period of the loan is 15 years.
  • Loan payments can be made in monthly or quarterly installments.
  • Life insurance will be required when taking out any mortgage in Cyprus.
  • Cypriot interest rates are currently around 4% and it is possible that they may drop further in the near future to the European Central Bank's base rate.

Should you need to raise funds in addition to the bank loan granted, you may apply for a loan to cover it by using an equity release option on your existing home.

Documents Normally Required by Cypriot Banks

  1. Personal details, including copies of passport
  2. Employment contract and P60s, or business accounts from your accountant.
  3. Documentation regarding existing debts, regular outgoings and details of any other mortgages in operation.
  4. Bank reference from your bank.
  5. Completed personal income declaration form.
  6. Original of Purchase Agreement
  7. Copies of your bank statements for the last three months
  8. Copies of receipts for deposit payments made to the vendor for the property
  9. You will need to open and activate a bank account in the same bank you obtain your mortgage from.
  10. Acquisition Permit from the District Authorities to allow the mortgage to be released by the bank.

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