General Information on Mortgages in Cyprus

"The central bank of Cyprus has issued a directive to all lending institutions within Cyprus, that a minimum deposit of 30% is required for securing a mortgage. Assetz Cyprus Division will however, assess each clients borrowing requirements on an individual basis and in certain circumstances, a lower deposit may be arranged , subject to status"

Assetz Cyprus provides a Cyprus mortgage advice and application service providing you with all the assistance you should need in obtaining a mortgage with a Cypriot bank.

Most commercial banks in Cyprus are authorized to offer mortgage facilities to local as well as foreign applicants to assist in the purchase of their property. Assetz Cyprus, taking advantage of its strong relationships with most of the local Cyprus banks, and in an attempt to reduce finance costs for its customers as well as to speed up the application process, has managed to set up special finance schemes on a number of developments.

General Information on Cypriot Mortgages

• Mortgages on property can be given in a foreign currency, e.g. U.S. dollars, British pounds, Euros and Swiss francs, or in Cypriot Pounds. Usually mortgages are on a repayment basis.
• If the loan is in the currency in which you receive your rental income then you have eliminated currency risk on your mortgage payments, however if the mortgage is in the local currency (in this case Cypriot pounds) you have eliminated the risk of the loan growing to more than the property value through currency exchange rate changes.
• For a loan in Foreign Currency, the maximum repayment period can be 15 years.
• For a loan in Cypriot Pounds, the maximum repayment period can be 25 years.
• The maximum loan amount is typically 70% of the value of the purchased property. In strong cases the amount can be 80%-85% of the value of the purchased property (depending on the credit rating of the customer) provided the property is new.
• The loan is normally repaid by monthly or quarterly installments.

Please fill in this form to apply for a Cyprus Mortgage quotation. For information on what information is required for a Cyprus Mortgage please look at our Cyprus Mortgage Information Page.

Security Required

• In case there is not yet a separate title deed for the property, a Letter of Guarantee may be required from the seller’s Bank to guarantee the issue and transfer of the title deed in the purchaser’s name. The Letter of Guarantee will be renewed annually until the title deed is issued.
• Assignment of the Purchaser’s rights deriving from the Contract of Sale in favour of the Bank.
• Assignment of a Level Term Assurance Policy for the initial amount of the loan and for the full period.

Documents & Information typically required by the banks

• Customer’s profile (Personal details, occupation and duration of your employment contract with your current employers)
• Passport copies (the page with the photograph & personal information)
• Statement of existing debts, particularly your home mortgage and regular outgoings (if any)
• A reference letter from the banks that you maintain an account with
• Completion of a Declaration of Personal Income
• Evidence of income, by way of pay slips or confirmation of remuneration in a letter from your employer, or the latest P60 or business accounts from your accountant
• Purchase agreement – (you will need the original agreement when you are ready for mortgage drawdown)
• Copies of your UK bank statements for the last three months
• Copies of any deposit payments already made to the seller for the property
• To open and activate a Cypriot account with the same bank usually.

Permit from the District Authorities

The mortgage amount can be released by the bank after the presentation to the bank of the Permit issued by the District Authorities to the purchaser for the acquisition of immovable property in Cyprus.

Mortgages - general

Cypriot mortgages for foreigners usually require a deposit of 30% maximum. New build can be lower. If you do not have this much cash available, then you can apply for a loan for this deposit taking some equity out of your existing home - please apply for a secured loan here for the amount of the deposit required.

The Cypriot interest rates are currently around 7% but foreign currency mortgages are available from around 3.25%. Life insurance will be required.

Buying through a company - It is quite possible to buy a property easily and cheaply through a company. For legal, tax and inheritance law reasons it is recommended to review this option - please read our guide to buying a Cyprus property through a Cyprus company.

There are two different types of mortgage available depending on the type of property you are looking to buy. The main difference is the deposit required :

New-Build properties

• Deposit required: a minimum of 10- 30% for non-residents - subject to status checks and by negotiation with the aid of Assetz Cyprus
• Length: 7- 25 years
• Interest rates: from 3.25% according to currency

Resale Properties

• Deposit required: a minimum of 30% for non–residents
• Length: 7- 25 years
• Interest rates: from 3.25% according to currency

On top of your mortgage costs, you will also have to pay:

• Legal costs (equivalent to UK stamp duty)
• Mortgage fees usually charged by the bank offering the morgage : 1% typically
• Additional fees, should you choose to employ a UK based solicitor
• See the full buying guide for more details of the costs involved in buying a property in Cyprus

If you want to estimate potential mortgage repayments, check our Overseas Mortgage Calculator. This will help you ascertain the feasibility of your mortgage application, and what you may need to change to be successful.

For more precise information or a full mortgage simulation, Apply for a Cyprus Mortgage here.

To speak with a member of the Assetz Finance team please call 0845 400 8000