The Best Way to Get a Mortgage in Cyprus

Are you looking for an easy way to get a mortgage in Cyprus? Mortgage rates are at historic lows. There has never been a better opportunity!

There are no shortcuts when it comes to getting a mortgage for a new home in Cyprus. You need to know all about the risks and other aspects you need to consider.

This article features some expert advice on how to get a mortgage in Cyprus.

The process of getting a mortgage in Cyprus

There are more risks in obtaining a mortgage for non-Cypriot residents. It is important to have an international broker. He/ she will help you find the best mortgage for properties in Cyprus. 

 You will need to appoint one person who deals with all the paperwork and has knowledge on how everything works. This includes drawing up your contract and getting it approved. It’s important that your solicitor is able to communicate in English and in the local language. That way, you can be sure that there are no misunderstandings. 

The deposit amount is generally 30% of the property value. However, we recommend checking the Cyprus mortgage calculator before you apply.

Your solicitor will register the property with the Land Registry in Cyprus. This happens once the final contracts are signed. You’ll be required to pay the relevant fees and taxes afterwards.

With a Cyprus mortgage, you can get the best of both worlds. You’ll enjoy low interest rates and easy repayment terms. You can get started with as little as 30% down payment. Don’t worry, your solicitor will handle all necessary paperwork. 

Taxes you will have to consider

When you buy a property in Cyprus, there are taxes that you need to pay. These include fees for registration, title deeds and an initial tax on the purchase price. 

These also include stamp duty paid to the Cypriot government and annual municipality tax. 

The stamp duty and transfer fees can be a hefty 10% of the overall sale price. You should definitely speak to a tax expert. He will be able to give you an accurate estimate of the fees you can expect.

Why is the help of an international broker important?

Mortgages in Northern Cyprus vs. Southern Cyprus

The differences in north and south Cyprus are significant enough to affect your mortgage. 

North Cyprus is considered to be an unstable region by the UK government. That means that British banks won’t give mortgages there. You can obtain a mortgage in Northern Cyprus from the Cypriot government and private banks.

The risks of purchasing property on foreign territory

When it comes to purchasing a home in another country, there are many risks. You can avoid some of these issues by being aware of them before purchasing.

For example, the Royal Air Force base is located on the southern tip of Cyprus, near Limassol. You may find yourself subject to the same noise pollution you can expect from living near any other airport. This will surely reduce your property value.

When buying abroad in any country, fluctuations of currency can be an issue. Your mortgage interest rates are likely to change when the exchange rate changes. The lender should provide you with information about fluctuations in exchange rates.

Be aware that legal protection won’t apply to the same extent as if your bank was located somewhere else. The legal protection you get when dealing with a UK bank is not the same in Cyprus.

You can get a mortgage from a UK bank. However, they may not know enough of the local market in Cyprus. Unless you live there or have some connections, it’s tough to find a loan that will work for you.

Therefore, you should get some expert advice. The expert advisor will work on your behalf. Advisors do everything they can to get the best deal for you.

Planning permission and deposit requirements

You must first find out what planning permission and permits are required for building on the land. Title deeds and relevant certificates can be difficult to find when you are dealing with authorities abroad.

You also need to make sure that no one has filed for an ownership claim on the land. Your deposit will vary depending on the type of property and mortgage you take out. Every lender offers different options, so make sure to do your research.

What to do if you have credit issues?

We all know that mortgage loans are difficult if you have a bad credit rate. It doesn’t mean the dream of owning your home is necessarily out. 

You may be surprised to learn that there are lenders out in the world who will work with people of all backgrounds. Your international broker can help you find one.

The Cypriot government has a policy of giving extra time to homeowners with a mortgage default. The extra time ensures they come up with the funds before they seize assets.

Conclusion: Speak to an expert and fully understand the risks of a foreign purchase

There are many factors that go into this decision. They include financial stability as well as what type or size of a home will best suit your needs. One of the most important steps in getting your home loan is finding an experienced mortgage broker. They can help you with all aspects, from understanding rates and fees to negotiating. It’s essential that you get expert advice before purchasing any property. When you apply for a mortgage in Cyprus, it’s important to know that every application is different.