All your questions answered

• Who is eligible?

  Physical persons, permanent residents of Cyprus who want to purchase a house for investment purposes.

  For further information, please contact the Service Officers of our branch network online, by phone or by written application.

• Maximum age of borrower on loan maturity?

  The borrower maximum age on loan maturity is 65 years

• Is there a grace period?
  • Yes, up to 12 months on the principal.
  • Up to 12 months on the principal and interest, if the house is under construction.
• What is the loan repayment period?

  Minimum repayment period

  • 15 years for a fixed interest rate loan
  • 10 years for a variable interest rate loan

  Maximum repayment period

  • 20 years
• Can I change my mind?

  You can change your mind and withdraw within 5 working days of the date of entering into the agreement.

• How can I learn more on the interest rates?

  Contact any of our Branch Network

• Useful information on interest rates, fees and installment payments

  What options are there regarding interest rates?

  For some loans you can select a floating interest rate or a fixed rate for a specific time period.

  If you select a fixed interest rate, the interest rate will remain fixed for the specified period agreed with the Bank (e.g. 5 years). It will not change under any circumstances, so your installment remains constant. At the end of the fixed interest rate period, loans are converted into variable rate loans.

  If you choose a floating rate loan, then the interest rate can be changed at any time (upward or downward). The variable interest rate consists of the base plus margin. Every time the total interest rate changes, your loan installment will also change.

  What are the initial fees?

  Some loans may bear initial fees, payable upon the granting of the loan.

  Initial bank fees

  • Arrangement fees: these relate to the Bank’s costs for preparing and evaluating your application.
  • Documentation fees: a fixed charge for the preparation of loan documents. the charge is determined by the loan amount.

   Government fees

  These fees are regulated by law as follows:

  • Mortgage registration fees paid to the Land Registry.
  • Fees relating to stamping the loan documents and paid to the Commissioner of Taxation.
  • Fees paid to the Land Registry in cases where the transfer of property from one owner to another is necessary.

   

  Fees paid to third parties

  These are fees related to valuations carried out on behalf of the Bank by approved valuers for mortgaged property, or fees related to life and/or home insurance.

  Find out about all Bank fees from the Table of Commissions and Charges

   

  What do I need to know about loan installment payments?

  • You can provide instructions in writing, so that your installment is paid automatically from your current account.
  • You can pay your installments as determined by the terms of your loan. Please make sure to designate a date that is convenient for you. Should this date change, you need to promptly  contact your personal banker.
  • Delayed installment payments incur additional costs, increasing the cost of your loan.
  • Should your financial circumstances change and you are unable to keep up with installment payments per the terms of your contract, please get in touch promptly with your personal banker in order to agree a new repayment schedule adapted to your new circumstances.

   

  What happens if I pay off my loan/installments early?

  Where a loan is paid off early, or installments are paid early in relation to the agreed schedule, the Bank will charge costs depending on the type of interest rate and the amount that was paid off early.

  What is the Annual Percentage Rate (APR)?

  The Annual Percentage Rate (APR) is the total cost of the loan to the consumer, expressed as an annual percentage on the loan amount. The APR includes all loan expenses paid by the client to either the Bank or to third parties (e.g. government fees, valuation expenses, insurance etc).

  The APR is considered to be the best tool as it includes all loan expenses. It helps you form a complete picture and to compare the Bank’s schemes with the schemes of other banks.