a PROUD home creator.
Financial Information  FINANCING YOUR PROPERTY
The information presented here is recognized throughout the European Economic Community. The following information is general and it applies to all housing schemes offered by the bank system in Cyprus except where otherwise stated.
Forms of Security
1. First Legal Mortgage on the property to be financed.
2. Bank guarantee from other bank.
3. Assignment of Sales Contract.
4. Fire, Earthquake and Other Similar Dangers Insurance Policy
5. Assignment of Life Insurance Policy
Interest Rate
- For Loans in EURO: Floating interest rate based on the banks Base Lending Rate (currently 4.50%) plus margin.
- For Loans in Foreign Currency: Floating interest rate based on the 1, 3, or 6 month LIBOR/EURIBOR plus margin.
- For Loans in Foreign Currency: Fixed interest rate set by the banks Treasury Division according to the renewal period (3 or 5 years).
Total Cost to the Consumer
The total cost is adjusted according to the current Base Lending Rate, the effective margin, and the specific terms and conditions of each loan.
List of Relevant Government Charges
- Mortgage Stamp Duties: 0.15% of mortgage amount + €8.54 (0.20% for amounts over €170,860)
- Document Stamp Duties: 0.15% loan amount (0.20% for amounts over €170,860) + €51.25.
- Mortgage Fees: 1.00% of mortgage amount.
Early Repayment
Early repayment can be effected provided prior notice of three working days is given to the bank with the following additional charges:
- For loans that fall under the Consumer Credit Act (up to €85,430 or the equivalent amount in foreign currency) the charge will be calculated based on the provision of the Act.
- For other loans the charge, if any, will be calculated based on the banks cost plus any charges arising from the early repayment of the loan.
Property Valuation
A valuation of the immovable property is effected by an approved valuer of the bank. The valuation expenses will be burdened to the customer.
Documents/Information required
1. Photocopy of applicant’s passport (the page with the photograph & personal information)
2. A reference Letter from the applicant’s Bank abroad
3. Evidence of applicant’s income (copies of last 3 months salary advices/ copy of last year’s tax clearance certificate / certificate from employer or accountant confirming annual income / last 3 year’s audited accounts etc)
4. Copies of Bank statements for the last six months
5. Statement of Loan account, which shows the initial amount of the loan. the remaining balance and the instalment amount
6. Copy of the Sales Contract
7. Copies of payments already made by the applicant for the property
8. To open and activate an account with a minimum deposit of the equivalent of EUR170,00 Permit from the District Authorities The loan amount can be released after the presentation to the Bank of the Permit issued by the District Authorities to the purchaser for the acquisition of immovable property in Cyprus.
Reference / Bank of Cyprus Plc
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