How to Obtain a Mortgage in Cyprus: A Step-by-Step Guide

Purchasing property in Cyprus is a popular choice for both locals and foreign investors. Here’s how you can secure a mortgage to make that dream property yours:

1. Eligibility Criteria

To be eligible for a mortgage in Cyprus, you typically need:

• Proof of steady income
• A good credit history
• A down payment (usually 30% of the property’s value for non-residents)

Cypriot banks offer mortgages to both residents and non-residents, but non-residents may face stricter requirements.

2. Prepare Your Documents

Be ready with the following:

• Proof of Identity: Passport or ID card
• Proof of Income: Pay slips, tax returns, or employment contracts
• Bank Statements: Recent bank activity showing your financial stability
• Property Details: Information about the property you’re purchasing, including any sales contracts

If you’re a non-resident, you might also need to provide additional documents such as proof of tax residence or utility bills to verify your address abroad.

3. Choose the Right Bank

There are several Cypriot banks and international institutions offering mortgages in Cyprus. Some popular local banks include Bank of Cyprus, Hellenic Bank, and Alpha Bank. Compare their interest rates, terms, and flexibility.

4. Mortgage Types

Cyprus banks typically offer:

• Fixed-rate mortgages: The interest rate remains the same throughout the loan period, giving you stable monthly payments.
• Variable-rate mortgages: The interest rate fluctuates with the market, which can result in lower payments during low-interest periods but higher costs when rates rise.

5. Loan-to-Value (LTV) Ratio

The LTV ratio is important. For non-residents, it’s common to receive a mortgage for 70% of the property’s value, meaning you’ll need a 30% down payment. Residents can often secure up to 80% financing.

6. Application Process

Once you choose your lender, submit your application with all necessary documents. The bank will evaluate your financial situation and the property itself. You’ll also need to pay for a property valuation, which the bank requires to assess the collateral for the loan.

7. Approval and Final Steps

Once approved, you’ll receive a mortgage offer outlining terms like interest rates, repayment schedules, and fees. After agreeing, the legal process begins, including signing the loan contract and registering the mortgage on the property.

8. Additional Costs

Don’t forget the additional costs such as:

• Stamp duty
• Legal fees
• Property valuation fees
• Insurance (life and property)

9. Repayment and Duration

Mortgage repayment periods in Cyprus range between 15 and 40 years, depending on your financial profile and the bank’s terms. Be aware of prepayment fees if you decide to repay your mortgage early.