Home Insurance & Mortgages
Home Insurance
Cyprus law dictates that you must carry valid fire and earthquake insurance on any property even if you own an apartment within a large block of buildings. Full homeowners and contents insurance is required once you officially receive your Cyprus property. If the property you have acquired is for revenue property you will want to be sure that your tenants are well aware of their responsibility for taking out insurance in order to alleviate any public liability that may arise at a later date.
Cyprus Mortgages
When entertaining the idea of purchasing Cyprus property, you will find that Cypriot Mortgages covers only southern Cyprus residential property. These mortgages are available for either home purchase or for refinancing for such things as home improvements. The type of Cypriot mortgages is by repayment only and is strictly guided by a minimum and maximum amount allowable. All mortgage loans are based on the value or purchase price whichever is the lower amount.
Proof of income is required when looking at Cypriot Mortgages. This income can be combined from working income, investment or rental income or even your pension amounts. Non-status loans are not available at this time.
When looking at terms for your Cypriot Mortgage, the maximum amount is 40 years when purchasing in Cyprus Pounds, or 25 years for all other major currencies up to age 70. Other acceptable major currencies include Sterling, Euros, US Dollars, Swiss Franks, and Yen.
The current variable interest rate for a Cypriot Mortgage is approximately 1.75% above LIBOR. You can also obtain loans from approximately 6% in Cyprus pounds. Your mortgage is calculated on an affordability basis and your debt load cannot exceed 35% of your net monthly income or 45% of your gross monthly income.
You and any other joint holders will be required to hold a current Cyprus bank account in order to obtain a Cypriot Mortgage and a suitable life insurance policy on any mortgage holders has to be assigned. You may find it easier to arrange your Cypriot Mortgage before agreeing to purchase a Cyprus property in order to avoid any administration delays in the completed paperwork.