Mortgages & Finance

It goes without saying that you should employ and English speaking Lawyer who can advise you on your home purchase. The Legal system is similar to that in England whereby your solicitor will perform all necessary searches on the property, ensure it is free of charges and has the necessary planning and building permission. In addition he will confirm the contract for purchase is fair and legally correct.

In addition to the normal legalities associated with property purchase your lawyer will secure a permit for the council of minister allowing the registration of the property of in the name of the purchaser and secure the central bank certificate allowing registration, These are mere formalities and do not affect your right to occupy the property. With accession by Cyprus to the E.U. all previous regulations regarding the amount of property a foreign national could acquire will be lifted.

Expect to pay around CY£1100 plus applicable stamp duty for legal services.

Mortgages And Funding Options

Investment Property In Cyprus Ltd are pleased to be able to offer the following finance options for your purchase of property in Cyprus.

Should you want any further information or wish to discuss fully please click to our: contact form.

	Option 1	Option 2	Option 3
Loan Purpose	Building of a house Purchase of a house or apartment (completed or under construction) Completion, extension, refurbishment of a house or apartment Re-financing of existing mortgage loan		· Purchase of a house or apartment (completed or under construction)
Loan Amount Coverage	80% of purchase price / building cost for 1st residence 70% of purchase price / building cost otherwise		70% for 1st residence 60% otherwise
Duration	For loans in Cyprus Pounds and EUR: Up to 35 years For loans in all other currencies: Up to 15 years Minimum duration of 15 years for Alpha FlexiHome At loan maturity customer’s age must not exceed 70 years
Interest Rate	Floating Interest Rate Margin: 1,75%-2,50% for all currencies Fixed Interest Rate: 3 or 5-yr periods		Floating Interest Rate Margin: 2,50%-3,00% for all currencies Fixed Interest Rate: 3 or 5-yr periods
Security	Mortgage on the property equal to 120% of the loan amount Fire and similar risks insurance Optional Life Insurance
Arrangement Fees	0,50% - 1,00%of loan amount
Repayment	Equal monthly instalments	First 5 years – Monthly interest payments only Subsequent 5 years – Normal monthly instalments Remaining years – Monthly instalments increased to cover repayment of capital postponed from first 5 years	Monthly interest payments only Bullet payments at any stage during the period of the loan to repay capital provided that the loan is settled by maturity
Grace Period	Repayment commences 1 month after the completion of the property with a maximum grace period of 2 years since the first granting of a loan amount, whichever occurs first During the grace period interest will be capitalised and will be covered by loan instalments		No grace period