Mortgage for non-residents
Buy property in Cyprus on loan. Most major banks are in a position to examine requests for Loan facilities by Non-Residents for the purchase of immovable property in Cyprus. The customer can borrow in a number of currencies, (i.e. EURO, GBP, CHF, USD) subject to the Bank’s final approval.
Loan amounts of up to 70% of the purchase price of the property. Loan facilities in foreign currency are repayable over a period of 15 years (with a right for renewal for a further 15-year period) by monthly, quarterly, semi-annual installments, whereas loan facilities in local currency (euro) are repayable over a period of 30 years, subject to the Bank’s approval. (Maximum age of borrower on maturity of the loan is 67 years).
Usually the Bank approval takes 1 month.
The following must be provided by each mortgage applicant:
- Photocopy of the applicants passport (the page with the photograph and personal information)
- Proof of income (copies of last 3 months' salary advices / copies of last, tax clearance / certificate from the employer or the accountant ) It is important that the annual mortgage payments do not exceed 50% of the family years income.
- Details of the property to be purchased supported by a copy of the sale contract
- Copies of the down payments invoices made by the applicant against the purchase price
Upon the establishment of the loan facility and in addition to the valuation cost, the applicant will have to pay an arrangement fee of up to 1,50% of the loan amount and documentation fee of up to EUR512,58.
First Legal mortgage on the immovable property to be purchased, or assignment of the sale contract supported by a bank guarantee from the seller (or waiver, subject to the Banks approval). In case the property under development is already mortgaged in favour of the Bank, no bank guarantee will be required.
The prescheduled payment of the mortgage is possible.
Other associated costs:
- Property evaluation
- Property insurance
- Borrowers insurance
- Stamp Duty