Banking in Cyprus

Banking in Cyprus –  Bank Loans

a) Interest rates & packages

Shop around for the best interest rates and packages. All banks in Cyprus offer housing loans both in local currency (Euro) or any other currency.

A bank loan amount can be a maximum 70% of the force sale value of the property

The customer has the option to choose the currency. An investment in Cyprus is always a good opportunity.

1. There is a long – term repayment period – The maximum repayment period is 30 years
2. The size of the loan depends on the needs and repayment ability of the customer.
3. Repayment is in monthly or quarterly instalments, commencing one month or three months after the loan is granted.
4. During the repayment period, interest accrued is also paid (every three months)
5. The property should be paid by foreign currency imported into Cyprus and converted to Euro.
6. The acquisition of property in the name of a non-resident requires the approval of the District Officer.
7. The registration of property in the name of a non- resident requires proof of the import of foreign currency to be presented at the Central Bank of Cyprus, if the value of the property is over 102.500 Euro.

b) Requirements for a housing loan application

To proceed with a housing loan application we need the following:

1. Photocopy of applicant’s passport (the page showing photograph of holder and personal details)
2. Bank reference
3. Income information, such as: copies of the last 3 months salary advice
4. Copy of last year’s tax clearance or any other documents proving income.
5. Copies of last 3 months Bank statements.
6. Copy of Sale contract
7. Copies of the payments ( receipts) made for the property so far.
8. Copy of Title of the property to be purchased
9. Copy of application/approval from District Officer for the acquisition of immovable property in Cyprus by a non-  resident.

Note: The Sale contract needs to be – Stamped with the required stamp duty -Deposited with the Land Registry within 2 months from the date of signing.

The security required by our Bank for the granting of a housing loan can be any one of the following:

1. A fixed deposit account with any Bank in Cyprus.
2. Mortgage on the purchased property (where there is a separate title deed for the property)
3. A letter of guarantee issued by the seller of the property in favour of our Bank, guaranteeing the issue of the title in the name of the buyer, PLUS the assignment of the applicant’s rights on the contract of sale. The banks arrangement fee for the granting of the loan is 1% on the loan amount, payable in advance.

Other costs to be considered:

1. Valuation fee of the valuator (valuation of the property is needed for assessing the loan application)
2. Fees for the transfer of the title to the buyer, payable to the Land Registry Office
3. Mortgage Fees payable to the Land Registry Office Stamp Duty on Mortgage and Loan documents
4. Commission for the letter of guarantee (if one will be issued instead of mortgaging the property)

Cyprus Currency

The currency of the Republic is the Euro €, which is divided into 100 cents.

Notes and coins currently in circulation are as follows:

Banknotes: €500, €200, €100, €50, €20, €10, €5

Coins: 1 cent, 2 cents, 5 cents, 10 cents, 20 cents, 50 cents, €1, €2

The Euro is  traded internationally. Commercial Banks quote daily the exchange rates of the Euro against all the major traded foreign currencies while the Central Bank quotes daily the Euro vis-a-vis the  U.S. dollar, the Pound Sterling and other currencies.

Banking hours for the public

September
Monday-Friday 08:30 – 13:30
Monday 15:15 – 16:45

October to April
Monday-Friday 08:30 – 13:00
Monday 15:15 – 16:45

May to August
Monday-Friday 08:15 – 13:00

Most  banks in the tourist areas are open in afternoon for money exchange purposes.

Banks are closed at weekends and on public holidays and Easter Tuesday. Christmas Eve is a working day for banks.

ATM Machines are located in all banks.