Cyprus every year is not to lose ground in the ranking of countries in which our compatriots are buying real estate. For some, it is a natural consequence of the desire to live in Cyprus, for others - the approach to the cherished dream of citizenship, for the third - a more attractive option holiday cottage than a house on the Volga. Whatever the cause was not dictated by the desire to acquire property on the sunny island for many potential buyers raises the question of the mortgage.
Mortgage lending in Cyprus is available not only for the citizens of the republic. To buy a property from the owner of the passport of a third country not necessarily the presence of a right of permanent residence on the island. Cyprus has become a favorite place for rest and work with our compatriots still in 90-ies, and since the full entry into the EU's interest in purchasing housing only grew. And even a difficult economic situation does not spoils the overall trend in the long 20-plus years.
A distinctive aspect when buying square meters in Cyprus to foreigners from third countries is the need to obtain permission to trade and possession of real estate in the Council of Ministers (Council of Ministers Permit). Who is the authority to issue such permits submitted to the appropriate authorities of each region, which should make the procedure faster. The process of obtaining this permit takes about 12 months. However, do not despair: the buyers have the right to live in the property until the completion of all formalities.
To obtain the permission necessary to make a statement of some form and attach to it a statement of bank account, references and copies of the work and the amount of income, proof of professional status, and documents containing information on all assets.
What documents are required at registration of mortgages in Cypriot bank?
As in any country, to the document collection process should be treated with the maximum care and responsibility. To the list of required documents for registration of a mortgage are:
In addition, you have to open a personal account in the bank, which are intending to get a mortgage.
Of course, the mortgage can be acquired in any foreign currencies: US dollars, British pounds, euros and Swiss francs. Residents of the CIS countries, accustomed to the fact that our currency is very tied to the rate fluctuations, no, no yes make out a loan in dollars or francs. However, Cyprus - not Russian, and loans in euros, on the contrary, to avoid exchange rate risks. Of course, if you receive your income in US dollars and are confident that in the coming years 10 situation is unlikely to change, it makes sense to consider this currency when you make a mortgage.
Payments can be either monthly or quarterly. The loan amount is usually up to 70% of the appraised value of the property. Sometimes, however, the loan may be granted by the bank in the amount of 80-85% of the property value, if the object is a newly built. Also, when you make a loan the bank takes a commission of 1% of the loan amount, and about 1,2% you pay in the form of state stamp duties. Moreover, almost all the banks when you make a mortgage will require you to issue life insurance, and in their company.
Another important point of the financial declaration and the documents submitted to the bank must be clear that the repayment of the loan is not easy enough for your salary, but it is only one-third of it. In other words, 30% of your income in one form or another are required to cover all payments to the bank. So if you want to get the approval for your loan application, do not hide their income and assets.
Even if you have already had experience of the acquisition of property in their home country according to the scheme of mortgage lending, we advise you to carry out transactions on the Cyprus appeal to professional lawyers, who already has experience behind the successful completion of such cases. This will not only save you time, but also to protect against a variety of problems, among them: buying a home with debt for utility services or real estate, which in itself is the collateral, the lack of "House by the Sea" and other titles.
Also, it will increase the chance that the documents on your part, too, the mosquito nose will not undermine. And if a lawyer - a citizen of Cyprus, it is likely to find a common language with the bank's representative or by officials in the case of minor problems. Remember: it is better to be safe than to be without money, and without real estate.