Take a mortgage studio
Ecaterina Kornitcaia asks:
Hello to you! Please answer! I am an EU citizen, I want to move to Greek Cyprus! In Greek Cyprus, I would like to take a mortgage on a studio apartment! How can this be done, and what is needed for this? Thank you very much!
Expert answers (2)
(Kotinos)
Ekaterina good afternoon! My name is Alexey, KOTINOS expert of the Cyprus Developers Association. Regarding the documents, I am sending information:
Mortgage information package for a foreign citizen.
Loan term
Min. 10 years / Max. 20 years old
The maximum age that can be reached with full repayment of the loan is 65 years
List of required documents:
1) An extract from the main bank account confirming the monthly income /salary for the last 6 months
2) Bank account statements showing the funds to be used as a contribution, or any other evidence confirming this for the last 6 months
3) Bank account statement for existing loans for six months.
4) A copy of the employment contract / salary payments for the last 6 months/ any other documents confirming other income
5) Official tax returns for the last 2 years
6) A bank letter indicating the availability of a credit line / credit request and credit rating for all applicants.
7) A copy of the certificate of ownership of real estate or a draft contract of sale for evaluation.
8) Copies of passports
9) A letter of recommendation from the bank for all applicants.
10) Payment of utility bills for no more than 6 months, confirming the address of permanent residence.
11) Personal Financial Report (PFS) attached
12) Checklist form - attached
13) Questionnaire - attached
14) Evaluation form - attached
* All documents that will be submitted for the loan assessment must be in English or OFFICIALLY translated into English.
* If the applicant is married, the loan will be combined, and the spouse will also be asked for the above data.
Depending on the information and details filled out in the PFS form or the documents submitted, the Bank may request additional clarifications/evidence.
Also attached is a questionnaire with the information necessary to open an account with our bank (a minimum deposit of 1,000 euros is required). The account will be opened provided that all documents are verified and comply with the Bank's policies and requirements.
Variable loan interest rate indicator
The new housing loan will be charged the ECB base rate (the base rate of the European Central Bank), which is currently 0% plus margin, as shown below:
Contribution <= 35%, then the margin added to the base rate will be 3.40%
Contribution> 35%, then the margin added to the base rate will be 3.30%
Future fluctuations in the ECB base rate will lead to adjustments in the total loan rate and monthly payments, respectively.
* This is an indication of the interest rate for a variable scheme offered by the bank in accordance with current rates with the possibility of a one-time payment or early full repayment of the loan without additional costs, in addition to an administrative fee of about 100-150 euros.
Property valuation
- Must be prepared by an independent appraiser. The bank can finance up to 70% of the market value of the property based on the valuation report or the sale price, whichever is lower, provided that your financial capabilities correspond to the monthly payment (the estimated value does not include value added tax).
Insurance policies related to the mortgage object
- A new life insurance policy for the amount and term of the loan will be requested for transfer to the bank.
- The new home insurance policy will be transferred to the banks.
Important
- You will need a lawyer in Cyprus to sign specific letters of declaration prepared by the Bank after the loan approval.
- Credit receipts will not be transferred to a credit account if the Bank has not been granted a Construction Permit and Construction Approval.
- If the client is not a resident of the EU, then an application will be required to the district officer (civil servant) to obtain permission to register the property in the name of the client. (the procedure is performed by the customer). The relevant application and approval must be submitted to the Bank.
Related fees
1) Commission for the organization - 1% of the loan amount
2) The cost of documentation is 75 euros.
3) Appraisal fees - for real estate worth up to 300,000 euros, the cost is approx. 200 euros
4) Stamp duty
- Ad Valorem calculation of the Contract value,
up to € 5 thousand without commission
€ 5 000 - € 170 000 - 0,0015% and
over 170,000 euros - 0.002%
* [Stamp duty is charged on credit and mortgage agreements]
5) Mortgage commission is 1% of the mortgage amount (the mortgage amount is 10% more than the loan amount)
6) Transfer fees - Follow the link to the Department of Land Resources and Surveys of the Ministry of Internal Affairs to get a calculator.
http://portal.dls.moi.gov.cy/en-us/Pages/CalculateTransferFees.aspx
Mortgage information package for a foreign citizen.
Loan term
Min. 10 years / Max. 20 years old
The maximum age that can be reached with full repayment of the loan is 65 years
List of required documents:
1) An extract from the main bank account confirming the monthly income /salary for the last 6 months
2) Bank account statements showing the funds to be used as a contribution, or any other evidence confirming this for the last 6 months
3) Bank account statement for existing loans for six months.
4) A copy of the employment contract / salary payments for the last 6 months/ any other documents confirming other income
5) Official tax returns for the last 2 years
6) A bank letter indicating the availability of a credit line / credit request and credit rating for all applicants.
7) A copy of the certificate of ownership of real estate or a draft contract of sale for evaluation.
8) Copies of passports
9) A letter of recommendation from the bank for all applicants.
10) Payment of utility bills for no more than 6 months, confirming the address of permanent residence.
11) Personal Financial Report (PFS) attached
12) Checklist form - attached
13) Questionnaire - attached
14) Evaluation form - attached
* All documents that will be submitted for the loan assessment must be in English or OFFICIALLY translated into English.
* If the applicant is married, the loan will be combined, and the spouse will also be asked for the above data.
Depending on the information and details filled out in the PFS form or the documents submitted, the Bank may request additional clarifications/evidence.
Also attached is a questionnaire with the information necessary to open an account with our bank (a minimum deposit of 1,000 euros is required). The account will be opened provided that all documents are verified and comply with the Bank's policies and requirements.
Variable loan interest rate indicator
The new housing loan will be charged the ECB base rate (the base rate of the European Central Bank), which is currently 0% plus margin, as shown below:
Contribution <= 35%, then the margin added to the base rate will be 3.40%
Contribution> 35%, then the margin added to the base rate will be 3.30%
Future fluctuations in the ECB base rate will lead to adjustments in the total loan rate and monthly payments, respectively.
* This is an indication of the interest rate for a variable scheme offered by the bank in accordance with current rates with the possibility of a one-time payment or early full repayment of the loan without additional costs, in addition to an administrative fee of about 100-150 euros.
Property valuation
- Must be prepared by an independent appraiser. The bank can finance up to 70% of the market value of the property based on the valuation report or the sale price, whichever is lower, provided that your financial capabilities correspond to the monthly payment (the estimated value does not include value added tax).
Insurance policies related to the mortgage object
- A new life insurance policy for the amount and term of the loan will be requested for transfer to the bank.
- The new home insurance policy will be transferred to the banks.
Important
- You will need a lawyer in Cyprus to sign specific letters of declaration prepared by the Bank after the loan approval.
- Credit receipts will not be transferred to a credit account if the Bank has not been granted a Construction Permit and Construction Approval.
- If the client is not a resident of the EU, then an application will be required to the district officer (civil servant) to obtain permission to register the property in the name of the client. (the procedure is performed by the customer). The relevant application and approval must be submitted to the Bank.
Related fees
1) Commission for the organization - 1% of the loan amount
2) The cost of documentation is 75 euros.
3) Appraisal fees - for real estate worth up to 300,000 euros, the cost is approx. 200 euros
4) Stamp duty
- Ad Valorem calculation of the Contract value,
up to € 5 thousand without commission
€ 5 000 - € 170 000 - 0,0015% and
over 170,000 euros - 0.002%
* [Stamp duty is charged on credit and mortgage agreements]
5) Mortgage commission is 1% of the mortgage amount (the mortgage amount is 10% more than the loan amount)
6) Transfer fees - Follow the link to the Department of Land Resources and Surveys of the Ministry of Internal Affairs to get a calculator.
http://portal.dls.moi.gov.cy/en-us/Pages/CalculateTransferFees.aspx
23.02.2023
(Foutina)
Hello Ekaterina. To do this, you need to have at least 30% of the money available (with confirmation of their origin) from the total loan amount and an income statement, tax return and everything else (if there is anything else) which can officially confirm your creditworthiness. Well, it is natural to choose the object that you will purchase.
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