Mortgages in Cyprus, The Basic Guide to a Cyprus Mortgage,

What do I need to qualify for a Mortgage In Cyprus? (Southern Cyprus)

To qualify for a mortgage in Cyprus, a calculation is used to establish whether you can afford to maintain the mortgage repayments. This will automatically happen when you complete an application form,

There are many types of mortgage available in Cyprus, including Buy to let mortgages!

How much am I able borrow?

Calculation based on the valuation or purchase price, whichever is the lower

From 70% LTV available for house purchase, re mortgage, home improvements or construction. 80% LTV only available for applicants either permanently residing in Southern Cyprus, or living there for at least 180 days per year.

All based on joint monthly gross pay, or where joint income is applicable

Existing liabilities, eg. mortgage or rental payments, loans, credit card payments and maintenance are taken into account, together with the proposed Cypriot mortgage payments. All this must not exceed 35% of your monthly gross monthly income, dependant on the final lending scheme

Proof of income what do I need?

Employed: Cyprus Mortgage

Your original last three month wage slips
Your latest original P60 or Employers Reference
Your original last six month personal bank statements

Self employed: Cyprus Mortgage

Your last 2 - 3 year audited accounts or possibly with an accountant letter and personal tax returns, original last 6 month business statements, Six month personal bank statements.

Example mortgage payments
If, for example, your gross joint monthly income is £2,500, 35% of this equates to £875. If your only liability is your mortgage payment, of say £300, this would leave a balance of £575 for your Cypriot mortgage repayment

Cyprus Mortgages, what types are available?

Currently covers Southern Cyprus only

Loans available from 70% of the properties value or purchase price, whichever is lower.

The maximum term of any mortgage is 40 years, this varies on the type of loan.

Mortgages are only available on a repayment basis.

The minimum loan you can take out is €100,000

Many of the financial institutions in Cyprus are authorized to offer mortgage applications to foreign nationals as well as to the resident locals residing on the island too. Usually the most you are asked to provide is a deposit of 30% and you can be financed for the rest. However, recently some commercial banks have been going as far as 100% financing for some of the real estate or property you are interested in purchasing. For a loan in foreign currency the maximum time allotted for the loan is 15 years. For a loan in Cypriot pounds however, the loan is allotted for 25 years. It is important to do some research on this category of purchasing real estate in Cyprus. This way you are aware of the different values and conversions of currency as well as the loan periods allowed.

Many real estate agents are available for any questions in this area too. Most financial institutions and banks in Cyprus are available to assist you if you have any questions on this matter. Loan payments can also be made in monthly or quarterly installments. One factor that should be taken into consideration when applying for a mortgage is that Life insurance is a mandatory requirement in Cyprus.

Additionally you will be asked to open an account with the bank you receive the mortgage from. This provides you and the bank with financial protection as well. In addition, when applying for a mortgage loan on real estate or property you must also be able to present the buyers agreement at the time of application.

Other details that are required are forms of ID such as a passport. Employment certification or records as well as other details that the bank or financial institution might ask for.

The current interest rate varies between three and five however; this is to actually be lowered within the next few years. It is not difficult to obtain a mortgage in Cyprus as long as you are able to substantiate the requirements and provide all the information that is required and requested by the bank or financial institution you are applying for the mortgage through.