Obtaining a mortgage in Cyprus
To receive a mortgage in Cyprus is essentially like any other place where real estate is sold. Or the buyer needs assistance in financially purchasing property or real estate in Cyprus. However, you may require the additional help of the experts in Cyprus when applying for a mortgage.
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 purchaser’s 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 is approximately 4% 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.
The most important thing a buyer can do is research. On different loan types and mortgage requirements. Different loan interest rates and fees as well as any other charges you might incur. Find out all the different documents you will need and anything else you should know. This way you are prepared when you go to initially apply for a mortgage and the process won’t be delayed.
Many times without proper documentation the waiting on obtaining a mortgage can seem dreadfully long. If you are aware of what is expected before the application then it is less likely to take quite as long.