Cyprus Property Finance
Cyprus Finance
Once residential licenses have been approved, the next step is working out a payment plan with your local bank. Generally, you must provide the bank with specific documents in order to complete the property ownership registration process for a bank loan. Below are the details regarding bank required documents as well as procedures required to apply for a bank loan.
Cyprus Banks - Required Documentation:
- Customers profile (personal details, occupation-duration of your employment contract, if any, with your current employers).
- Passport copies (page displaying a photograph and personal information).
- Statement of existing debt (if any).
- A reference letter from the banks you maintain current account/s with.
- Completion of the attached Declaration of Personal Income.
- Evidence of income - either pay slip or confirmation of remuneration from your employer, or P60 or business accounts.
- Purchase agreement (will need original document when ready for loan drawdown).
- Copies of bank statements reflecting the last three months.
- Copies of payments already made by the applicant for the property.
Cyprus Loan Procedures: Loan procedures for EU citizens are standard for most banks in Cyprus. Once you have been approved for a loan, there are two options which you can choose from in order to repay your monthly installments. Below are bulleted points regarding the loan and repayment procedures.
- The loan can be granted in foreign currency (i.e. USD, GBP, etc.) or in EUR. The repayment of the loan must be effected from external sources.
- It is advisable that the loan is in the currency that the applicant receives his/her income so that there is no exposure in any exchange risk during the repayment period.
- For a loan in foreign currency, the maximum repayment period can be 15 years.
- For a loan in Euro, the maximum repayment period is 25 years.
- The maximum loan amount will be 60% of the value of the purchased property. In exceptional cases, the amount can be 70% of the value of the purchased property (depending on the credit rating of the customer).
- The loan is repaid in monthly installments.
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