Getting a mortgage in Cyprus
In 2026, Eurobank offers customised mortgage products for non-residents, while most Cypriot banks restrict mortgage lending to permanent residents.
According to the Central Bank of Cyprus Statistics, the average interest rate in December 2025 was 3.78% (latest available data).
This guide provides a clear overview of the requirements, procedures, and tips to help you secure the best mortgage for your property purchase in Cyprus.
A mortgage is a loan to purchase land, a house, an apartment or other real estate. The two sides in a mortgage are the lender or mortgage provider and the borrower, who buys the property.
The borrower repays the loan in regular instalments, the amount being the principal plus interest. The property stands as security or collateral for the loan.
Features of Cyprus national mortgage
- In 2026, interest rates have stabilised at 4.15% to 4.75% for variable products, with discounts of approximately 0.10% to 0.25% available for energy-efficient 'Green' homes.
- The primary legislation is the Immovable Property (Transfer and Mortgage) Law 9/65.
- Mortgages are registered at the Department of Lands and Surveys (DLS).
- The Bank of Cyprus is the largest provider of housing loans, with a market share of approximately 40%.
Mortgage eligibility and residency rules
Getting a mortgage for residents (EU and Non-EU)
If you live and work in Cyprus (tax resident), you have access to the full range of mortgage products from all major Cypriot banks, regardless of your citizenship.
Mortgage eligibility for residents:
- EU citizens: Must provide their Registration Certificate (Yellow Slip).
- Non-EU citizens: Must provide a valid Residence Permit (Pink Slip or Category F/6.2).
Residents typically qualify for higher financing limits (up to 80% Loan-to-Value) and extended repayment terms.
You will find a property in Cyprus and apply to the bank for a mortgage. The bank will need to see proof of sufficient income. The bank wants to make sure you can repay the mortgage in regular instalments.
Note that the property's value must be enough to cover the mortgage amount.
Mortgage for non-residents and investors
You do not need to be a resident to obtain a mortgage in Cyprus. However, financing options for non-residents, including both EU and non-EU citizens living abroad, are specialised and primarily offered by Eurobank Cyprus.
Key terms for non-residents:
- Lender: Eurobank is currently the primary bank financing non-resident applicants for "Holiday Homes" and "Buy-to-Let" investments. Note that Bank of Cyprus retail mortgages are currently restricted to permanent residents only.
- Down payment: Banks require a higher personal contribution. You can typically borrow up to 60-70% of the property value, meaning you need a down payment of at least 30-40%.
- Duration: The maximum repayment age is strictly capped at 65 years old, which may shorten your loan term compared to resident loans.
- Citizenship factor: Your nationality does not affect the mortgage interest rate.
- Required evidence: Non-residents must pass strict Anti-Money Laundering checks. You will need to provide tax declarations from your country of residence, proof of employment/business ownership, and 3-6 months of bank statements to verify your income abroad.
You will find a property and apply for a mortgage with the bank. The bank will need to see proof of sufficient income. The bank wants to make sure you can repay the mortgage in regular instalments.
Note that the property's value must be enough to cover the mortgage amount.
Choosing the right bank for getting a mortgage for a property
Buying property and taking a mortgage are among the major life decisions. Therefore, you must weigh your options and feel comfortable with how you proceed.
To make an informed decision, consider the following:
- Your budget and down payment savings. Financial advisors, CNN reporting and other sources suggest that your monthly housing costs should ideally not exceed 28% of your monthly income. Most banks have a mortgage calculator, which is a good place to start to determine how much mortgage you can afford.
- Educate yourself. Do your research and learn about common mortgage types and loan terms. Be a well-informed borrower.
- Compare mortgage providers. You can check rates, loan terms, down payment requirements, service, lender fees, and closing costs. Ask family and friends for referrals.
- Explore the websites of mortgage providers and talk to them in person. Ask questions about their loan products, how they communicate with clients and how they treat clients in your specific circumstances (e.g. the self-employed, the first home borrowers and so on).
- Choose the best mortgage lender for your situation. You must feel comfortable with their terms and confident they will be supportive during the process, says Taylor Stork, Chief Operating Officer of the Developers’ Mortgage Company in the US.
Cypriot banks providing mortgages for expats
The major banks provide mortgages for residents and expats alike.
Major banks in Cyprus include the following:
- Bank of Cyprus: The market leader with approximately 40% market share. Best for residents and tech-savvy buyers, offering an "approval in principle" within 24 hours via its "Digital Housing Loan" platform. It offers a competitive "Green Housing Loan" but restricts lending to permanent residents.
- Eurobank: The ideal choice for non-residents looking for Holiday Home or Investment loans. For residents, it stands out with the "My Home Rewards" program, which provides significant cash-back loyalty rewards.
- Alpha Bank: Ideal for mature borrowers or those seeking lower monthly payments. Uniquely, it offers loan terms up to 40 years and allows repayment up to the age of 70 (compared to 65 at other banks).
- Ancoria Bank: A strong "Digital Challenger" alternative for residents. It currently offers some of the most competitive variable rates in the market (APR starting at approximately 3.28%) and waives initial bank fees for primary residences.
Note: On September 1, 2025, Hellenic Bank merged with Eurobank Cyprus, becoming Eurobank Limited.
There is a complete list of the Cypriot credit institutions on the Central Bank of Cyprus website.
What are the mortgage rates in Cyprus?
A key consideration for 2026 is the transition to "Green" practices. Banks now see energy-efficient homes with EPC ratings of A or B as better collateral. Purchasing a "Green" home could qualify you for an interest rate discount of approximately 0.10% to 0.25%.
Interest rates may be fixed or variable, or fixed for some time and then variable. Depending on the bank, a fixed rate for the whole repayment period is also possible.
Interest rate mechanisms
Borrowers in Cyprus face a choice regarding interest rate structures.
The market is split between loans linked to the Euribor (Euro Interbank Offered Rate), which offers transparency but exposes the borrower to pan-European monetary volatility, and loans tied to Bank Internal Base Rates, such as the Bank of Cyprus Base Rate (BCBR). The latter provides some protection from immediate market shocks while giving the bank more flexibility in setting rates.
Is there any difference in Cyprus mortgage interest rates for EU citizens and non-EU expats?
Your nationality makes no difference to the mortgage interest rate.
The factors that count when the bank is deciding on the applicable interest rate are:
- Your credit history
- Your contribution
- The loan amount
- The collateral
- Loan duration
Bank of Cyprus mortgage rates
The Bank of Cyprus determines interest rates based on your contribution (Loan-to-Value) and the type of base rate you choose. As of 2026, the bank offers distinct structures for permanent residents.
Variable rate options
Borrowers can choose between two base rate mechanisms:
- ECB Base Rate: Linked to the European Central Bank rate plus a margin (typically 2.00% – 2.35%). Current indicative total: 4.15% – 4.50%.
- Bank Base Rate (BCBR): Linked to the bank's internal rate plus a margin (typically 3.00% – 3.35%). Current indicative total: 4.40% – 4.75%.
Fixed rate security
Uniquely in the Cypriot market, Bank of Cyprus offers long-term fixed rate options to protect against volatility:
- Standard fixed terms: 3, 5, or 10 years.
- Long-term fix: A unique option to fix the rate for up to 25 years, providing maximum stability for budget planning.
"Green" and digital incentives
- Green housing loan: If you buy or build an energy-efficient home (EPC Category A), you receive a 0.20% discount on the interest rate margin.
- Zero fees: The "Your First Home" scheme currently waives arrangement and documentation fees for qualifying first-time buyers.
Eurobank mortgage rates
Eurobank is the primary lender for non-residents and investors, and determines your interest rate margin based heavily on your contribution (down payment).
Tiered variable rates
The more you contribute upfront, the lower your interest rate margin:
- High contribution (>40%): If you provide a down payment of 40% or more, you qualify for their "Prime" margins, typically ranging from 0.75% to 1.75% plus the base rate.
- Standard contribution (less than 40%): For lower down payments, margins increase to approximately 1.25% – 2.00%.
Introductory fixed rates (expats' favourite)
To protect borrowers from Euribor volatility, Eurobank offers competitive introductory fixed rates. Popular options for 2026 include:
- 3-year fixed: Rates starting from approximately 2.95%.
- 5-year fixed: Rates starting from approximately 3.10%.
Note: After the fixed period, the loan reverts to a variable rate.
"My Home Rewards" program
Eurobank offers a unique loyalty scheme for new mortgage customers. You can earn up to €2,000 in cash-back rewards, which can be redeemed at affiliated merchants (supermarkets, DIY stores, gas stations) as a helpful bonus for furnishing a new home.
How much can you borrow?
The maximum loan amount depends on your residency status:
- Residents: Major banks like Bank of Cyprus may finance up to 80% of the property value for a primary residence.
- Non-residents: For holiday homes or investment properties (via Eurobank), financing is typically capped at 60% to 70% of the property value.
Usually, banks offer online affordability calculators to help you determine the maximum amount you can borrow based on your financial situation and needs.
How to get a mortgage in Cyprus
Getting a mortgage in Cyprus is a straightforward process in the following steps:
- Calculate your budget and find a property. If you are a non-EU (third-country national), start getting approval from the Council of Ministers for your purchase.
- Visit the bank website and use their online tools.
- Make an appointment with the bank.
- Open a bank account, preferably with the bank that interests you.
- Ask the bank which documents are required (indicative list above) and what other information they need.
- Begin the application process.
- To get a mortgage, you will need life and fire insurance. You can get these from a bank that is different from the one that provides the mortgage.
Though not strictly necessary, it is highly recommended that you only begin or go through this process after getting professional legal advice.
The documents required for getting a mortgage
The bank needs information concerning the following:
- Identity
- Income
- Contact
- Your professional details
- The property
Income information involves payslips for the last three months and information on any additional income sources. If you are self-employed, you must provide an income tax return form and other relevant documents.
Information about the property will include:
- Title deed
- Energy Performance Certificate (EPC) (Required to qualify for lower "Green" interest rates)
- Planning and building permissions, or applications, if these are pending
- Timetable and cost analysis signed by a professional evaluator or civil engineer
- Architectural plans for the property valuation
Note that the list is indicative. The bank may request additional relevant information and documents.
Additional costs and fees
When calculating your budget, remember that the interest rate is not your only cost. You should budget for:
- Mortgage registration fee: Charged by the Land Registry, typically 1% of the loan amount.
- Valuation fee: Paid to a professional surveyor to value the property for the bank (approx. €150 - €500).
- Arrangement fees: Charged by the bank to set up the loan. Lenders like Bank of Cyprus and Ancoria often waive this for primary residences.
- Insurance: Life insurance and Fire/Earthquake insurance are mandatory for mortgage approval.
