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Cyprus Mortgage

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Feb 8, 2023

Cyprus Mortgage

With its perfect weather and stunning scenery, it’s easy to see why Cyprus is a popular destination for purchasing real estate, but for many buyers, an overseas mortgage can be an issue.

In Cyprus, mortgages are available to citizens and non-residents and the process has been made slightly easier with new policies, that make owning an overseas property affordable and possible.

The mortgage market in Cyprus is similar to other European countries and many applications have positive approval rates and here, you’ll find out about the mortgage process, requirements, and risks of getting a mortgage in Cyprus.

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Can I Get A Mortgage In Cyprus?

Yes, it’s possible to get a mortgage for a property in Cyprus, but there is more to consider than a mortgage in the UK. It’s also more complicated for non-Cypriot residents because there are more risks. Below we’ll explain the mortgage process and the associated risks.


What Is The Mortgage Lending Process In Cyprus?

To get your Cyprus mortgage process started, you’ll need to hire an international broker. A broker can help you find the most suitable mortgage for your property.

Once you’ve settled on a property and your mortgage has been approved, you’ll need to appoint a solicitor as you would for a UK mortgage. The solicitor will deal with the relevant paperwork such as drawing up the contract.

You should choose a solicitor who is fluent in English and the language in the local area so there are no language barriers. If you want to use a firm from home, ensure they are registered with the UK Law Society and that they’re international transaction specialists.

You’ll also need to put down a 30% deposit; you can find out how much this sum is by using a mortgage calculator. Once the final contracts have been signed, your property will need to be registered with the Cyprus Land Registry which your solicitor can organise. You’ll then need to pay the relevant taxes and fees which we’ve covered below.

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What Do I Need to Get a Mortgage in Cyprus?

Below you’ll find an overview of the requirements for getting approved for a mortgage in Cyprus.

Personal contribution

For Cypriot locals and permanent European residents, getting a Cyprus mortgage typically means having a rate of around 80% of the property’s value, but some buyers may be eligible for up to 100%.

For EU homeowners, the minimum deposit is approximately 20-40% of the property’s total value.

Home value appraisal

Many banks will need a home value appraisal of your property as part of the mortgage application, as the purchase price is not enough to calculate your mortgage rate.

Maximum age and loan duration

Depending on how old the borrower is, home loan terms are set anywhere from 10-40 years. Borrowers also can’t be over the age of 65.

Loan application documents

For a seamless mortgage application process, make sure you have the following supporting documents:


  • Proof of your permanent residency, such as a utility bill
  • Passport or ID card

Information on the property that you’re mortgaging

  • An architects certificate or a planning permit
  • Title deed
  • Building permit
  • Property valuation
  • Cost analysis and a timetable signed by an expert

Proof of your income

  • If you’re an employee – payslips from the previous three months
  • If you’re self-employed or a business owner – social insurance statements, income tax forms, and previous audits.

When you submit the documents, the bank should be sure that you’re able to meet the monthly payments. Make sure you provide the correct documents so the bank is assured you can pay them back.

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Potential Risks of Buying Property in Cyprus

Purchasing a property in any foreign country has its risks which you should be aware of. Here are the potential risks to know if you’re thinking of buying a Cypriot home.


If you intend to buy land to build on, you’ll need to find out which permits and planning permission you’ll need. It can also be difficult to find the right title deeds when dealing with overseas authorities.


When buying abroad, it’s important to know that any country can be affected by currency fluctuations and exchange rates can change. This can have an impact on the interest rates that affect the mortgage, and your provider should let you know if the exchange rate fluctuates by more than 20%.

If you get a mortgage with a Cypriot bank, you won’t have the same legal protection as you would with a UK bank. But, although you can have a mortgage with a UK bank, they won’t know the local market and they may not be able to recommend the best mortgage deal.


Tax Considerations

There are taxes that you’ll need to pay when buying a Cypriot property, just as you would when buying one in your home country. These taxes include transfer fees paid to the Cypriot government, stamp duty, an IPT (immovable property tax), a yearly sewage tax and an annual municipality tax.

The transfer fees and the stamp duty both depend on how much your property is worth and could make up 10% of the total sale price, on top of the surveyor and solicitor fees. To get an accurate quote for your total fees, it’s recommended you speak to an expert.


Considerations If You’re Buying a Property With Bad Credit

Mortgage default

If you buy a property and find yourself having trouble keeping up with your mortgage or you default on your Cypriot mortgage, the bank may initially give you additional time to pay.

Poor credit

Each lender is different, but if you’ve had or currently have bad credit, it’s still possible to find a provider who will give you a mortgage. This is another reason why you need an international broker, as they can help you with this.

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What Are the Major Banks in Cyprus?

If you have a permanent residence permit and you’re considering taking out a mortgage in Cyprus, the majority of options are financed by real estate agents at the major banks in the country. These banks are:

  • Astrobank
  • Alpha Bank
  • Bank of Cyprus
  • Hellenic Bank
  • RCB Bank

Let’s take a look at what each bank offers:


  • Interest rates starting from 1.80%
  • Finance amount of up to 80% of the property value
  • Fixed or variable interest rate
  • Withdrawal right
  • Digital application
  • No early loan repayment fees

Alpha Bank

  • Floating interest rate
  • Finance amount of up to 80% of the property’s value
  • 40-year repayment period
  • Digital application
  • Withdrawal right

Bank of Cyprus

  • Repayment period of 10-35 years
  • A fixed or variable interest rate for 3-10 years
  • No initial bank fees
  • Digital application
  • No fees for early loan repayment
  • Withdrawal right – five days from the date of conclusion
  • Financing amount of up to 80% of the property’s value

Hellenic Bank

  • A repayment period of up to 35 years
  • Financing amount to up to 80% of total property value
  • A variable or fixed interest rate
  • No fees for early repayment
  • No primary bank charges
  • Withdrawal right five days from the date of the loan agreement

RCB Bank

  • The financing amount of property value depends on your circumstances
  • A repayment period of 15-35 years
  • No early repayment charges
  • The withdrawal right depends on your circumstances
  • No initial bank charges
  • Fixed or variable interest rate

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Speak To LoanCorp About Your Cyprus Mortgage

When buying a property abroad, it’s vital that consult with an expert so you’re fully aware of the risks. Each mortgage application is based on the individual’s circumstances, so even if someone you know has had a successful mortgage in Cyprus, your situation may be very different.

Our mortgage affordability calculator can help you decide what you can comfortably borrow to get the best deal possible.

If you have any questions about getting a mortgage in Cyprus and you need to speak to an expert, give LoanCorp a call today on 0808 301 9509. You can also fill out our online form with your query, and one of our friendly experts will get back to you as soon as possible.



What deposit amount do I need for a Cyprus mortgage?

The deposit you put down depends on the size of the property and the mortgage you decide on, as each provider offers various options.

Can foreigners buy properties in Cyprus?

Although it can be a bit lengthy, the process of buying a Cypriot property is fairly simple when compared to other European countries. A foreigner can purchase property in Cyprus without any restrictions as long as the requirements are met and they don’t have a criminal record.

What is the difference between North and South Cyprus mortgages?

Taking out a mortgage in Northern Cyprus might pose a bigger risk as the political landscapes are different than in South Cyprus, and this could impact your mortgage.

The British government considers North Cyprus to be economically unstable, and so British banks don’t provide mortgages for properties in that region.


Final Thoughts

With a range of lending options for EU residents, foreign nationals, and locals, a Cypriot mortgage loan can help you buy your property at an affordable price. Contact us now to chat with our qualified professionals to ensure you get your mortgage approved swiftly and smoothly.

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