Green Housing Loan

More information

• Who is this green housing loan addressed to?

  Physical persons, permanent residents of Cyprus who want to acquire a primary residence or holiday home with an Energy Performance Certificate category Α.

  For further information, you can book your appointment or contact the Relationship Officers of our branch network online, by phone or by written application.

• What should I know about the Green Housing Loan?
  • The Green Housing Loan is granted when the financing is for the purchase or construction of your first or holiday home with a building  Energy Performance Certificate category Α.

  • The Green Housing Loan is based on "Green Loan Principles" of  the "Loan Market Association" ("LMA") as in force in February 2023.

  •  Upon presentation of the Energy Performance Certificate category Α  which is issued prior to construction, your Loan will be eligible to qualify as “Green”. Then, if you provide the Energy Performance Certificate category A which is issued after the construction of the building, your housing loan will be qualified as Green Housing Loan.

  • Green Housing Loan is offered with variable interest rate for the entire duration of the loan and a fixed interest rate for 3,5 or 10 years in the beginning, then interest rate changes to variable.

  For variable rate loans, the pricing is 0,20% lower than other housing loans offered by the Bank with variable interest rate.

  For fixed rate loans the pricing is 0,20 % lower, only during the variable rate period, than other housing loans offered by the Bank with a fixed rate at the start.

  • • For financing buildings bearing an Energy Performance Certificate category A, which is issued after the construction of the building, then the 0.20% lower interest rate is offered with loan initiation.
    • For financing buildings  bearing an Energy Performance Certificate category A, which is  issued before the construction of the building, then a 0,15% lower interest rate is offered. When the Energy Performance Certificate category A, which is issued after the construction of the building is presented, then an additional interest rate reduction of 0.05% will apply on the loan.

  • The financed property must not be located within a designated “Natura” area.

  • A separate account, the “Dedicated Sight Account”, will be opened for all the payments related to the Green Housing Loan. The Bank will proceed with payments from this account, upon receival of relevant instructions by you.  The Dedicated Sight Account will be linked only to the Green Housing Loan and cannot be used for any other purpose.
• What is the maximum loan amount available under the green housing loan?
  • For your first home, the financing amount is up to 80% of the property's value.

  • For your holiday home, the financing amount is up to 70% of the property's value.

• What is the repayment period for a green housing loan?

  Minimum duration

  10 years:

  • for a loan with a variable interest rate from the beginning
  • for a loan with a fixed interest rate of 5 years

  15 years:

  • for a loan with a fixed interest rate of 3 or 10 years

   Maximum duration

  35 years

• What is the maximum age limit for loan repayment?

  A borrower’s maximum age at loan maturity is 65 years

• Are there any initial charges or fees when applying for a green housing loan?
  • For the financing of your first home there is no charge of arrangement and documentation fees.
  • For your holiday home, the loan is charged with arrangement and documentation fees.
  • There is a fixed charge for the costs of the Dedicated Sight account in case the property is under construction.

  Initial bank fees

  1. Arrangement fees: these relate to the Bank’s costs for preparing and evaluating your application.
  2. Documentation fee: a fixed charge for the preparation of contracts for loans, the charge is determined by the loan amount.
  3. Dedicated Sight account fees: a fixed charge for the cost of the Dedicated Sight account in case the property is under construction. 

  Government fees

  These fees are regulated by law as follows:

  1. Mortgage registration fees paid to the Land Registry.
  2. 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

• Can I apply for instalment postponement on my green housing loan?

  In case of unforeseen events, you can postpone the payment of up to 2 monthly installments per year (24 installments during your loan duration). The granting of the installment suspension is at the discretion of the Bank and is subject to terms and conditions.

• Is there a grace period for loan repayment?

  There is an option for grace period:

  • Up to 12 months on capital or
  • Up to 12 months on capital or on capital and interest, if the property is under construction.
• Do I have the right of withdrawal after applying for a green housing loan?

  You have the right to withdraw from the agreement within 5 business days from the date of its conclusion

• What is the interest rate?
  • Bank of Cyprus Public Company Ltd (the “Bank”) offers housing loans with variable interest rate based on the European Central Bank Base Rate (“ECB Base Rate”).
  • It is noted that the margin based on the ECB Base Rate is currently and indicatively from 2,00% to 2,15% and the total interest rate based on the ECB Base Rate is currently and indicatively from 4,15% to 4,30%.
  • The interest rates offered vary based on criteria evaluated and applied by the Bank in accordance with its credit policy as applicable from time to time, taking into account factors such as customers’ credit history, the collateral, the loan amount and loan duration, as well as the applicant’s contribution.
  • For more information, please contact any of the Bank’s branches.

   

  For indicative examples click here 

• Useful information on interest rates, fees and instalment payments for housing loans?

  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. Thus, your installment remains fixed, unaffected by a possible rise in interest rates, however it should be noted that, at the same time, you do not benefit from a possible reduction in interest rates. At the end of the fixed rate period, the loans are converted to floating interest rate loans, except for 25-year fixed interest rate loans, where the interest rate remains fixed for the entire term of the loan.

  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 contracts for loans, the charge is determined by the loan amount.
  • Dedicated Sight account fees: a fixed charge for the cost of the Dedicated Sight account in case the property is under construction. 

  Government fees

  These fees are regulated by law as follows:

  • Mortgage registration fees paid to the Land Registry.
  • 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 stipulated 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 early.

  In case of loans with a long duration of fixed interest rate, the cost of early repayment may be significant.  The cost of early repayment that is estimated by the Bank mainly depends on the interbank market interest rates which fluctuate on a daily basis as well as on the date of early repayment. For more information you can contact a Relationship Officer in our Branch network.

  You may also be informed about all Bank fees from the Table of Commissions and Charges

  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.