Getting a mortgage in Cyprus
A mortgage in Cyprus is available only to permanent residents. According to the Central Bank of Cyprus Statistics, the average interest rate in August 2024 was 4,65% (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.
Features of Cyprus national mortgage
- The primary legislation is the Immovable Property (Transfer and Mortgage) Law 9/65.
- Mortgages are registered at the Department of Lands and Surveys (DLS).
- To register a mortgage at the DLS, you must complete form N. 271. The Ministry of Interior website has more details on mortgage registration in Cyprus.
- The Bank of Cyprus is the largest provider of housing loans, with a market share of over 30%.
- As of August 2024, the average mortgage interest rate was 4,65% (source: Central Bank of Cyprus).
Mortgage in Cyprus for foreigners
Getting a mortgage for EU/EEA citizens
To get a mortgage in Cyprus, you must be a permanent resident. What you have to do is, within four months of your arrival in Cyprus, register at the Civil Registry and Migration Department. You must earn sufficient income to support yourself and any dependents.
Then, 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 parts.
Note that the property's value must be enough to cover the mortgage amount.
Mortgage for non-EU citizens
To obtain a mortgage in Cyprus, you must be a permanent resident. Non-Cyprus residents are not eligible for a housing loan. Your nationality does not affect the mortgage interest rate, which is, on average, 4,65%.
Non-EU citizens get permanent residence in one of the following ways:
- Permanent employment in Cyprus
- Self-employment. Note that this type has high capital requirements.
- Secure income sources from abroad. The income amount must allow you to support yourself and your family.
Employment in Cyprus can be at a Cypriot employer or a company of foreign interests (as highly skilled personnel or support staff).
You will find a property 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 parts.
Note that the property's value must be enough to cover the mortgage amount.
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
- 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.
Cyprus mortgage rates
According to the Central Bank of Cyprus Statistics published in October, the average mortgage interest rate in August 2024 was 4,65%, up by 0,06% from July.
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.
How much can you borrow?
The maximum mortgage amount varies with the bank, but some major banks, such as the Bank of Cyprus, offer as high as 80% of the total purchase price.
Usually, banks offer online affordability calculators to help you determine the maximum amount you can borrow based on your financial situation and needs.
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
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: Forbes magazine says, “Your social network is valuable!”
- 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:
There is a complete list of the Cypriot credit institutions on the Central Bank of Cyprus website.
Bank of Cyprus mortgage rates
Like all banks, the Bank of Cyprus considers several factors when determining your interest rate (see above). Currently, the indicative rate ranges from 4,81% to 4,96%.
Properties that can be bought in Cyprus with a mortgage
You can use a mortgage to buy most property types in Cyprus, including:
- Residential real estate: apartments, houses and villas
- Commercial real estate: office suits, retail units, warehouses and office buildings
The property will stand as collateral and security for the loan.
As of October 2024, the median price for a Cyprus apartment listed on our website is € 505,000, with the median price per square meter being around € 4,053. On the other hand, the median price for a house or villa is € 690,000, with the median price per square meter being around € 3,396.
Limassol is the most pricey city in Cyprus, with a median listing home price of € 677,500. At the same time, Larnaca claims the title of the most affordable area, with a median listing home price of € 330,000.
The median listing home price in Paphos is € 577,000, Nicosia — € 350,000, and Famagusta — € 525,500. However, since we mainly focus on real estate in Limassol, the number of listings we have in other districts negatively impacts the accuracy of the calculations for these regions.
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.
FAQs
- Features of Cyprus national mortgage
- Mortgage in Cyprus for foreigners
- The documents required for getting a mortgage
- Cyprus mortgage rates
- Choosing the right bank for getting a mortgage for a property
- Properties that can be bought in Cyprus with a mortgage
- How to get a mortgage in Cyprus
- FAQs