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How easy can I secure a mortgage in Cyprus?
Securing a mortgage in Cyprus can be a very simple procedure as long as you are able to contribute around 30% of the selling price and your clean yearly earnings are around two times more from the proposed monthly payment.

When should I contact the Bank for a mortgage?
It is advisable to discuss with your banker prior to the purchase. Make sure that you are able to contribute the 30% down payment in order to secure a mortgage. It can be a very unpleasant experience if you proceed with the down payment and finally you realise you cannot secure a mortgage. Check the mortgage rates and see if the proposed monthly payment is realistic for you.

In what currency can I have my mortgage?
Mortgages can be given in different currencies like Euro, Dollars, British pounds etc.

For how many years can I have a mortgage?
It can be for a period of 1 year up to maximum of 30 years, always depending on the applicant's age.

What extra costs will I face if I decide to apply for a mortgage?
1) The cost of the property valuation (around 170 - 350 EUR)
2) An arrangement fee of up to 1% of the amount of the loan
3) Documentation fees

What securities will the bank require?
1) The First Legal Charge over the immovable property to be purchased, or assignment of the sale contract supported by a bank guarantee from the seller. If the property under development is already mortgaged in favour of the bank then no bank guarantee will be required.
2) Assignment of a Fire Insurance Policy
3) Mortgage Indemnity Insurance

What information should I provide the bank together with my application?
1) A copy of the Contract of sale
2) Proof of the down payment given to Seller (around 30% of the purchase price)
3) Proof of income (usually last 3 moths pay slips)
4) Completion of bank application form with statement of assets and liabilities
5) Copy of your passport (first two pages)
6) Your residential address and date of birth
7) Bank Reference
8) Details of the purchased property including the tittle deed in case of a resale or the a copy of the planning and building permission and a set of architectural plans in the case of a property that is still under construction.

What is a bank guarantee?
A Bank guarantee is an agreement between the buyer, the developer and the developer's bank that ensures that the title deeds will be issued. In case the title deeds are not issued within the specified time limits due to the developer's then the buyer has the right to exercise the bank guarantee and get his money back. The bank guarantee, however, comes at an additional cost of 1.8% per year on the amount specified on the bank guarantee.

How long does the whole process take to get a loan?
It takes approximately 3 - 5 weeks from the time you provide the Bank your written application and the required documents.

What is meant by Security?
By security we mean the collateral that will be put down towards the loan. Any lender anywhere in the world has to have some kind of security through which they can claim the money they loan to people in case the loan defaults. The security can be the title deed to the property or in case the title deeds have not yet been issued then a bank guarantee or a partial mortgage initiated by the developer on behalf of the buyer. This may sound a bit confusing to the buyer but it is actually standard procedure in Cyprus.