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Financing/Loan

Here at K.A Kyprianou we can assist you in obtaining finance for your property through various established banking institutions located in Cyprus

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Below is the procedure for the loan application for

  1. Foreigners / Cyprus residents - first home and for

  2. Foreigners / non-residents – holiday home.

 

 

Kindly note that the clients must open an account with the relative banking institution, before the below procedure (or at the same time).

 

 

Requested documents from all applicants :

(Documents can only be accepted in PDF format. Any other form of documentation (photograph/ screenshots) cannot be accepted).

 

  1. Bank statement evidencing monthly income for the last 6 months

  2. Bank statements showing your contribution

  3. documents evidencing your income (see attached proof of repayment ability document)

  4. Official Tax Declaration Letters for the last 2 years – at least 1 year translated in English

  5. Credit Search for all applicants (EITHER YOU HAVE LOANS OR NOT)

  6. Copy of the Title Deed of the property in Cyprus or Sales contract (draft is ok as well) so as to proceed with valuation plus the contact details of the seller/agent.

  7. Personal Financial Statement (PFS attached) – please complete ALL amounts in your INCOME currency ( if not EURO). This report is very important for us, so we can have a clear view of your financial status. It is very important that whatever income/ loans the client declares in the attached document, to be able to support it with documents (eg payslips & bank statements – amounts in the bank statement have to match with the rest documents).

 

Depending on the info and details filled in the PFS form or documents submitted, the Bank may request further clarification/evidence.

  1. Checklist form - attached

  2. Application form - attached

  3. Valuation form – attached

  4. Building Energy Performance Certificate ( applicable only for buildings who were built after 2010)

  5. Planning and Building Permit

 

Important notes:

- All documents must be in English  (after the approval, these must be OFFICIALLY  translated to the English language by a sworn translator)

- If applicant is married, then the loan will be joined or the spouse can be a guarantor on the loan and above details will be requested by spouse as well (including the proof of the spouse repayment ability).

- If the spouse will not be a co-borrower or a guarantor, her income will not be taken into consideration for the examination of the repayment ability of the loan.

 

Other information to be provided :

On whose name/s is the loan going to be?

On whose name/s is the property going to be registered?

Please send us the contact details of the seller.

 

Loan Details

 

  • Interest Rate Options: Variable or Fixed.

  • Financing amount: up to 60% - 65% for a holiday home or up to 50% for investments, of the lowest between the market value and the purchase price of the property.

  • Maximum repayment period 25 years. Please note that the borrowers maximum age at loan maturity should not exceed 60 years (For Cyprus relocated clients) and 65 years (for non-residents).

  • Minimum repayment 10 years in case of variable interest rate and 15 years in case of fixed interest rate.

 

LOAN SCHEMES FOR FIRST HOME (NOT FOR INVESTMENT) – note: the below rates are subject to approval for non-residents

 

LOAN SCHEMES WITH VARIABLE RATES

 

  1. ECB Rate plus margin of 1.50%              OR

  2. BoC Base Rate plus margin of 3.40%

 

Notes:  

  • ECB Rate: 4.50% / BoC Base Rate: 1.2574% (valid from 15 March 2024).

 

LOAN SCHEMES WITH FIXED RATES (there is penalty in case of early repayment)

 

  1. Fixed interest rate of 4.30% for 3 years and thereafter:

                 ECB Rate plus margin of 2.00% or

                 BoC Base Rate plus margin of 3.40%

 

  1. Fixed interest rate of 4.05% for 5 years and thereafter:

                 ECB Rate plus margin of 2.00% or

                BoC Base Rate plus margin of 3.40%

 

  1. Fixed interest rate of 4.20% for 10 years and thereafter:

                ECB Rate plus margin of 2.00% or

                BoC Base Rate plus margin of 3.40%

 

Initial Bank Fees

  • Arrangement fees: Costs for preparing and evaluation your application,

      1,00% on the loan amount once off.

  • Documentation fees: fixed charge of €75

 

Loan example:

Loan amount : €120k

Sale price of property: €200k

Duration : 20 years

Loan monthly instalment: €770 approx.

Interest rate : BoC Base Rate 1.25% plus margin of 3.40% = 4.65%

 

 

Valuation for Property

It is prepared by an independent surveyor.

Valuation fees – for a property value of up to €300,000 the cost is approx €240

 

Insurance policies associated with the mortgage facility

New Life insurance policy for the amount and duration of the loan will be requested to be assigned to the Banks favour

New House insurance policy to be assigned to the Banks favour.

 

Important

- A lawyer based in Cyprus will be needed in order to sign specific Letters-declarations prepared by the Bank once loan is approved.   

- If customer is not an EU resident then an application to the District Officer (government official) will be needed (procedure is done by customer). Relevant application and approval must be submitted to the Bank

- VAT application for lower %

 

Every client is examined case by case.

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