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Finance for Property in Cyprus

Finance for Property in Cyprus

Finance for property in Cyprus

To be entitled to finance your property with the regular loan packages that are offered by the banks, you would have to be a permanent resident in Cyprus for at least 5 years. If you fall within this criteria, you would be allowed to approach any bank in Cyprus and provided you put your property as collateral and can prove you can cover the installments you shouldn’t have a problem being granted a loan. There are packages for first home buyers, holiday homes, for building the house of your dreams and for resale purchases of houses or apartments. You can even apply for a loan to renovate your existing home.  

The following information is for permanent residents in Cyprus.

Loan Amount

You can get up to 70% of the value of the property and opt for a set installment and frequency of payments based on your repayment capabilities. A grace period can be negotiated for up to 2 years if the house is under construction. The maximum repayment period, depending on the method of purchase, is 20 - 30 years and the minimum is 15 years, if you opt for a fixed interest rate, and 10 years if you opt for a variable interest rate. Loans are given on condition the loan matures by the age of 65 years.

Interest Rates

Interest rates are calculated on the base rate that the bank has set for housing loans or the Euribor 6 month rate. The Euribor is the borrowing rate of the main banks within the Eurozone and can be applied for up to 12 months. You can set a fixed interest rate for a period of 5 - 10 years. After this time period is up the interest rates will be variable and will fluctuate according to the base rate of the bank. It is up to you to decide whether you prefer the stability of a fixed interest rate or if you are prepared to risk the fluctuations of the variable interest rates. Interest rates are calculated on your daily loan balance.


What are the added costs?

  • Upfront fee to the bank for granting the loan
  • Valuation of property expenses
  • 1% of loan value when your mortgage is registered at the deeds office
  • Arrangement fees of 1% are charged on housing loans Arrangement fees:  (bank expenses for the preparation and evaluation of your application)
  • Documentation fees, this is usually €75 for loans over €20,000.
  • Stamp duty
  • Transfer duties if buying a resale property
  • Cancellation fees if loan is approved and cancelled
  • Early repayment fees
  • Installment in arrears charges


Installments are paid on a specific date on a monthly basis according to what is stated in your contract. You can ask your banker to set a convenient date according to your needs and is always best to give the bank written instructions to create a direct debit so that your payments are made automatically. Failure to pay on time will incur costs. If for some reason your financial situation changes and you are not able to make the payments, contact your banker and discuss a new installment plan that is more sustainable.

Loans for non-Cypriot residents


For those who are not yet permanent residents in Cyprus special arrangements according to your specific needs can be negotiated with the bank. Some of the banks do offer straight forward schemes with a limit of up to €300,000 and a 20 year repayment plan as long as the mortgage will be paid before the age of 65 years. The property must be mortgaged and you would be required to take out insurance for the property as well as life insurance. In some circumstances you might even be required to make personal guarantees. A 20 – 40% of the total price of the property must be made as a down payment and the interest rate for foreign investors can be anything from 5 – 6%. Negotiate with your banker and work out the best deal for your needs. Cyprus encourages foreign investment and there are many tax rebates and incentives in place to make it easier to invest. Take time to negotiate with the different banks as they do have some leeway to offer you a better interest rate. It normally takes less than a month to get your loan approved, provided that you fit in with all the criteria the banks require.