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Acquiring loans
Acquiring Bank Loans
Property Lending to Non- Residents
Cyprus Banks is in the position to examine requests for Loan
facilities by Non- Residents for the purchase of immovable property
in Cyprus. Therefore, we believe that it want be long before these
parameters are simplified further and that banks promote better
financial packages to European citizens as Cyprus is now full member
of EU.
Most of the cases, Bank’s main parameters for offering lending to
non - residents are the following:
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Loan amounts of up to 70% of the purchases price of property can
be offered provided the purchase price of the property does not
exceed CYP 100K. In case the purchase price of the property
exceeds the amount of CYP 100 K, then an additional loan of 50%
of the amount exceeding CYP100K can also be examined.
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The maximum amount of loan per applicant is CYP200K. However,
banks can also examine applications for greater amounts, on a
case –by-case basis.
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The facility is repayable over a period of 10 years with
monthly, quarterly, semi-annual installments subject to the
Bank’s approval.
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The interest to apply on these loans will be Libor + up to 2.75%
and the customer can borrow in number of currencies, (i.e. GBP,
EURO, CHF, USD, CYP), subject to the Bank’s final approval.
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The valuation cost of the property is payable by the applicant
irrespective of the outcome of their application.
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Upon the establishment of the loan facility and in addition to
the valuation cost the applicants will have to pay an
“arrangement fee “of up to 1% of the loan amount and
documentation fee” up to CYP 100.
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As security, the Bank will require the following:
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