Once residential licenses have been approved, the next step is working out a payment plan with a choice from mamy local Cyprus Banks. Generally, you must provide the bank with specific documents in order to complete the property ownership registration process for a bank loan. Below are the details regarding bank required documents as well as procedures required to apply for a bank loan.
Cyprus Banks - Required Documentation:
Customers profile (personal details, occupation-duration of your employment contract, if any, with your current employers).
Passport copies (page displaying photograph and personal information).
Statement of existing debt (if any).
A reference letter from the banks you maintain current account/s with.
Completion of the attached Declaration of Personal Income.
Evidence of income - either pay slip or confirmation of remuneration from your employer, or P60 or business accounts.
Purchase agreement (will need original document when ready for loan drawdown).
Copies of bank statements reflecting the last three months.
Copies of payments already made by the applicant for the property.
Cyprus Loan Procedures: Loan procedures for EU citizens are standard for most banks in Cyprus. Once you have been approved for a loan, there are two options which you can choose from in order to repay your monthly installments. Below are bulleted points regarding the loan and repayment procedures.
The loan can be granted in foreign currency (i.e. USD, GBP, etc.) or in Euros. The repayment of the loan must be effected from external sources.
It is advisable that the loan is in the currency that the applicant receives his/her income, so that there is no exposure in any exchange risk during the repayment period.
For a loan in foreign currency the maximum repayment period can be 15 years.
For a loan in Cyprus Pounds the maximum repayment period is 25 years.
The maximum loan amount will be 60% of the value of the purchased property. In exceptional cases the amount can be 70% of the value of the purchased property (depending on the credit rating of the customer).
The loan is repaid by monthly installments.