Cyprus Bank Mortgage Requirements;
Mortgages - Loans from Cyprus banks are most common in Euros.
Your contribution should be 20-30% (as much as 50% is required by some banks).
Interest rates are fluctuating due to Euribor and Libor rates; contact each bank and enquire directly.
Options of up to 24 months capital grace are available and applicable when only interest is paid.
Loans can be up to 30 years or 65 years of age, whichever comes first.
Life assurance is not always necessary, if it is required, often overseas life assurance policies are accepted.
Arrangement Fees: check with each independent bank.
Early repayment penalty: check with each independent bank.
Purchasing a Property in Cyprus with a Mortgage;
1) Please ensure that you will have full title to the property at completion and that the appropriate documents are available for the lender.
2) With new properties, find out the date the property will be registered in your name(s), as the lender cannot lend on the security of the property until it has been registered.
3) Processing and securing the loan on your overseas property will be done as soon as possible, however delays may occur due to the Cypriot legal and administration system.
4) Check with the estate agent/lawyer that you are aware of the costs charged by the legal & government authorities for purchasing a property in Cyprus, noting that the lender will have their own legal costs for assigning the loan (the cost of which they will normally advise when they issue the mortgage offer).
5) It is essential that you take the appropriate independent legal advice before signing the sales contract or paying a deposit.
The bank will require a copy of the signed contract to be forwarded to them with the relevant application form. However you are able to sign this contract with the clause "subject to mortgage finance"
6) Please be aware that the Lawyer/Notary may be incorporating within his charges, costs for assigning the mortgage and you should establish with the lawyer/Notary the actual cost before proceeding with a loan application.
7) It is advisable to arrange your mortgage finance before agreeing to purchase a property.
8) A Cypriot bank account will be required.
9) Some mortgages require a life assurance policy assigned to the lender.
10) Properties can be purchased either individually or in joint names.