How to get a mortgage in Cyprus as an international buyer

Don’t think you can afford a property in Cyprus? You might be surprised at the options available to you in our globalised financial system. Here we’ll outline details on the types of mortgages available, eligibility criteria and more.

Bear in mind that in Cyprus the term ‘housing loan’ is more common than mortgage.

Getting a mortgage in Cyprus

International buyers in Cyprus can generally take out a mortgage of between €75,000 and €500,0000. At the time of writing, mortgage rates range widely, from below 2% to 7.5%. The rates are lower for new-build properties rather than resale, which range from 5% to 7.5%.

Loan periods can be taken out for five to 40 years and monthly payments must not exceed 30% of your income.

The maximum age is (at the end of the mortgage term) is 65 years and most mortgages mean you won’t be allowed to use the property for commercial gain e.g. short-term lets.

Unfortunately, in Cyprus, unmarried couples cannot have a joint mortgage and buy-to-let mortgages are not available to non-residents.

Variable and fixed-rate mortgages are available. Typically, fixed rates usually last for longer than they do in the UK.

Properties you can buy with a mortgage

Cypriot banks offer mortgages for both residential and commercial purposes but it’s worth noting that those who buy apartments or complexes in new developments have a higher chance of approval.

There are a number of special programmes when buying new in Cyprus:

• The down payment is typically 10% to 30% of the purchase price and 40-50% for resale homes
• When buying new, the developer acts as the guarantor, increasing your approval chances
• The bank may require a certificate of property registration to purchase a resale apartment and may refuse a loan if the seller cannot provide one.

Types of mortgages available

Mortgage application process

As an international buyer it is certainly easier to use a mortgage broker in Cyprus.

The buyer will be obliged to pay a commission to the bank. This fee is equivalent to 1% of the mortgage amount.

Tips to secure a good mortgage rate

If you’re an international buyer seeking a mortgage in Cyprus, here are some tips to secure a favourable rate:

Residency status matters: Being a resident of Cyprus significantly improves your chances of obtaining a mortgage. Foreigners without residence permits face restrictions, including higher down payments and interest rates.

Stable income: Demonstrating a high and stable income is crucial. Solvency is assessed based on your financial stability and ability to repay the loan.

Property Type: Cypriot banks provide mortgages for both residential and commercial properties (new and resale). However, buyers of apartments in new buildings often receive higher mortgage approval rates.

Developer Assistance: When purchasing property in a new building, developers actively assist with mortgage paperwork. The developer’s involvement can improve your chances of loan approval.

Down payment: Expect a higher down payment (up to 50%) if you’re not a resident. Residents may qualify for an initial payment of around 30%.

Interest Rates: Interest rates vary from 1.9% to 7.5%. New properties generally have lower rates than resale properties.