Do I need a bank Guarantee?
A bank guarantee is an agreement between yourself, the developer and the developer's bank, which ensures that the Title Deeds are issued. If, due to the developer, the Title Deeds are not issued within the time limits they have specified, you have the right to exercise the bank guarantee and receive money back. The bank guarantee costs an extra 1.8% per annum on the amount stipulated on the bank guarantee.

What does 'contribution' mean?
This is the amount you are putting down towards the property purchase, i.e. a deposit, which is usually 20-30% of the purchase price.

How do the banks calculate my Repayment Ability?
Your repayment ability is calculated by looking at your monthly income and monthly outgoings. The banks divide the total outgoings by the monthly income, and providing the figure is not above 35%, then your repayment ability is considered to be good. Banks will also take into account your occupation, the size of your family and maturity dates of existing loans.

Can you take out interest only mortgages in Cyprus ?
Interest only mortgages are available in Cyprus , but have to incorporate an endowment policy. The monthly repayments for endowment policies are more than if you had opted for a regular repayment mortgage.

Is it necessary to have life insurance?
Yes, all banks insist you have life insurance.

Why must I have life insurance?
Life Insurance is needed to cover the possibility of death. Lenders need to be certain that the loan will be paid off in the event of a death and loss of earnings, and would prefer not to have to repossess the property.

Is my existing life insurance policy acceptable as security?
Most banks in Cyprus prefer your life insurance to be with a company based in Cyprus ; however some banks occasionally accept insurance policies from other companies in other countries. For this to happen, the maturity value must be at least the same value of the total loan amount.

Will the banks consider my age?
Yes, your age will be taken into consideration by the bank, because you must not be over the age of 65 or 70 when the loan finishes.

What Interest rate will I pay?
Interest rates vary from bank to bank and can be anywhere between 2% & 7.5%, but we will always negotiate the best deal possible on your behalf.