General Information
· The mortgage can be granted in Foreign Currency (e.g. USD, EUR, GBP, CHF Etc) or in Cyprus Pounds.
· The buyer needs to pay the 30% of the value of the property.
· The rest of the mortgage will be paid depending on the buyer’s age...etc.
· The banks usually offer a 6-6.25 interest rate per year.
· For a mortgage in Foreign Currency the maximum repayment period can be 15 years.
· For a mortgage in Cyprus Pounds the maximum repayment period can be 30 years.
· In both cases the age of the applicant plus the term of the mortgage cannot exceed the age of 70.
· The maximum amount borrowed can be up to 70% of the value of the purchased property. In exceptional cases and especially for first time buyers the amount can be up to 80% of the value of the purchased property (depending on the credit rating of the customer).
The mortgage is repaid by monthly or quarterly installments.
Documents/Information required by the banks:
1. Customer’s profile (Personal details, occupation-duration of your employment contract if any with your current employers).
2. Passport copies (the page with the photograph & personal information).
3. Statement of existing debt (if any).
4. A reference Letter from the Bank you maintain an a/c with.
5. Completion of the Declaration of Personal Income form.
6. Evidence of income either pay slip or confirmation of remuneration from your employer, or P60 or business accounts.
7. Purchase agreement.
8. Copies of bank statements for the last three months.
9. Copies of payments already made by the applicant for the property.
10. To open and activate an account with the bank.
If you have any questions , do not hesitate to contact us, it would be our pleasure to help you.
Property Buyer’s Guide
Making an offer
Buying a property in Cyprus is very similar to buying a property in the UK.
You make an offer and if it is accepted, it is normal to give a nominal deposit (between CYP1000-CYP2000) to reserve the property, bind the owner, have the property taken off the market and secure it at that day ‘s price.
This in Cyprus, unlike the UK, is legally binding and so ‘guzumping’ does not exist.
Contracts are consequently drawn up and this process takes only a few days.
Upon signing of the contract, the buyer must pay at least 20%-30% of the value of the property.
The remaining sum is paid according to the terms agreed with the seller which usually include periodic installments until delivery.
Fees, charges and property taxes
Transfer Fees
The transfer of immoveable property into a purchaser’s name can be affected once permission to acquire the property has been granted from the Council of Ministers/Pertinent Authority (where that is necessary).
When registering the property under his/her name at the District Land Office, the purchaser will be liable to pay the following transfer fees, calculated according the property’s market value at the time of signing of the contacts.
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