Find the Best Housing Loan for Your Dream Home in Cyprus

Have you been thinking about buying your dream property in Cyprus but don’t have the cash? Cypriot credit institutions are offering attractive housing loan schemes. However, banks have become extremely cautious when it comes to lending criteria. Young people are oftentimes restricted from getting a housing loan. 

Below is a list of key housing loan schemes offered by both systemic and non-systemic banks.

Bank of Cyprus

The Bank of Cyprus is a major financial institution that has been operating for decades. The Bank of Cyprus will finance up to 80% of the value of your first home. 

The interest rate is fixed at 3.5% for 10 years. It is valid for the standard and adjustable-rate mortgages. The fixed interest rate option means that there are no changes in your monthly payments. 

Interest rates on loans change after the end of each fixed interest period. The new interest rate is determined every month based on changes in an index. When it is time for repayment, your lender will adjust the amount you owe.

The maximum repayment period is up to 30 years. The borrower’s age must not exceed 65 years at the time of loan maturity.

When borrowing €100,000, the interest rate is 2.35% and 2.45%. The repayment period is determined by the type and amount of your installment. Most likely 20 years will be enough to pay it off. You need to make your monthly payments on time each year, so you won’t acquire major fees or charges.

The Bank of Cyprus is offering first time homebuyers an exceptional opportunity. It offers competitive rates of 3.5% for 10 years with no prepayment penalty. When you choose the fixed interest rate option, your monthly payment will remain the same until you pay it off.

Hellenic Bank

The Hellenic bank in Cyprus has been providing financial services for over 100 years. It has over 3 million clients worldwide. They offer a wide range of services, including loans for people who want to buy property or start their own businesses.

Hellenic Bank offers a loan for houses with an initial down payment of 30%. The loan offers a high interest rate and long duration. It is ideal for people who need to borrow large amounts of money.

The APR for this loan is 1.91%. The maximum duration of your contract is 30 years.

With another housing loan for the same amount, interest rates will be at 1.65% over three years. The maximum repayment period is also 30 years. The minimum down payment percentage required to secure this loan type is 30%.

Alpha Bank

Astro Bank

AstroBank in Cyprus is one of the most reputable banks on this island. Astro bank is well-known for their amazing customer service and financial products. 

The Astro Bank mortgage loan starts from €20,000. The bank offers fire and earthquake insurance as well as life assurance. They also provide personal guarantees for all policies.

The repayment term for this loan is 40 years. The debtor cannot exceed the age of 70 at loan maturity. The bank has announced that it will be reducing the base interest rate from 2.4% to only 2%. 

Eurobank

Eurobank in Cyprus is a well-established institution that has been providing financial services for more than 50 years. They offer various housing plans with prices starting at €10,000. 

You can choose to repay your loan over a set period of time. It depends on how much money you make each month and the type of interest rate that applies. The borrower cannot be older than 75 at the time of loan maturity.

You may be surprised to learn that for a €100,000 mortgage loan with 30 years repayment, the interest rate is fixed over only one year.

The interest rate for this loan is ranging between 4.9% and 5.5%. For the remaining years, your interest rate ranges between 3.2% and 3.8%.

Ancoria

The Ancoria Bank in Cyprus has been a popular choice for those looking to find an offshore center that they can trust. Ancoria Bank is a popular Cypriot lender, with branches across the country.  It’s been around since 1990. Ancoria has grown to be one of Europe’s largest banks by market value.

Ancoria Bank offers competitive interest rates and home loans for people who want to buy a new property. Rates may be as high as 60% of the estimated property value. 

With a loan amount of up to €300,000 the interest rate is 1.99%. The repayment period duration is up to 35 years. Loan applicants can’t be older than 65 years at the time of their loan maturity.

Housing Finance Corporation

The Housing Finance Corporation in Cyprus is a state-owned entity that provides financing for home mortgages. HFC offers long-term housing loans up to 40 years with low interest rates. Maybe you’re looking to renovate your home? If so, there are loans available for up to €100,000. The repayment period is between 10-15 years. They offer loans as high as €300,000. The repayment period for them is 30 years.

Conclusion: The credit institutions in Cyprus offer attractive housing loans

This article provided you a list of key housing loans offered by both systemic and non-systemic banks. The credit institutions in Cyprus offer attractive housing loans. Bank of Cyprus and Hellenic are two major players in the island’s banking sector. They hold 67% market share. We recommend you research these housing schemes carefully and choose the one that best fits your financial needs.