We see positive signs that the housing market is going back to normal. We have seen a period where finding a bank that offers house loans in Cyprus was impossible but now it’s back to business as usual. The Hellenic Bank has started to give loans to foreigners for buying properties in Cyprus a little more easily now. Purchasers’ contribution “Down Payment” must be 30% instead of 50% and the interest rate is currently around 5.3%. The bank prefers for the properties to have separate Title Deeds as they want to register a mortgage on it and they will give the loan provided the purchaser/s have the necessary proof of income.
With Hellenic’s Housing Loans the dream of homeownership is easier to achieve. For applications submitted by July 31st, 2015 it is possible to get 3% interest rate, Zero loan administration fees, Zero legal documentation fees, Loan re-payment period up to 40 years, 30% down payment (contribution) and favourable insurance premiums by Pancyprian Ltd. and Hellenic Alico Life Insurance Company Ltd. There is also the potential of additional financing up to 10% of the housing loan or up to 20,000 Euros (whichever is greater) for home equipment purchases.
The Bank of Cyprus is also pushing housing loans and according to their website, they will contribute up to 80% of the required amount for qualified buyers. They also have many available terms and options such as fixed-interest over a period from 3 to 30 years as well as floating rates. You can use the loan for a new or existing home as well as building a home.
I believe that we are in a period of recovery for the housing market and the banks. We are still in the early stages and the banks will be very diligent in qualifying buyers. But, in time we will see the interest rates become even more competitive.
