The island’s credit institutions have very attractive housing loan schemes on offer for young people who want their own roof but don’t have the cash.
However, with the shadow of non-performing loans because of malpractice still hanging over their head, banks are now extremely cautious with lending criteria. But his does not imply that young people are restricted from getting a housing loan.
INSIDER lists below key housing loan schemes offered by both systemic and non-systemic banks:
Bank of Cyprus
Bank of Cyprus’ financing amount for first home is up to 80% of the value of the property with a fixed interest rate for 3.5 or 10 years. After the end of the fixed interest period, the interest rate changes to variable for the entire duration of the loan.
Maximum repayment period is up to 30 years, while the debtor’s age must not exceed 65 years at loan maturity. Grace period is up to two years.
For the financing of a housing loan of 100,000 Euros, the interest rate is 2.35% and 2.45% and a repayment period up to 20 years depending on the amount and frequency of the instalment.
Hellenic Bank offers a housing loan scheme with a minimum down payment of 30%, a maximum duration of 30 years and a total interest rate of 1.91% for a loan of 100,000 Euros.
Another housing loan for the same amount of money has the interest rate at 1.65% over the first three years, while maximum repayment is also 30 years and minimum down payment is at 30% of the loan.
Alpha Bank’s housing loan amount covers up to 75% of the property’s purchase value for first main residence.
The repayment is through equal monthly instalments with maximum duration up to 40 years, including grace period of up to two years.
At loan maturity the debtor’s age must not exceed 70 years. As an example given, for a 100,000 euro loan the total interest rate is 1.96%.
AstroBank offers a mortgage loan starting from 20,000 Euros with mortgage on the immovable property under consideration as security, along with Fire and earthquake insurance as well as Life insurance and personal guarantee.
Repayment is with a loan term up to 40 years, but in any event the debtor cannot exceed the age of 70 at loan maturity.
As from November 2017, the bank reduced base interest rate from 2.4% to 2%.
Eurobank offers housing plans starting from 10,000 euros and with repayment duration based on the instalment the borrower can pay each month and the type of interest rate on the loan.
The debtor cannot exceed the age of 75 at loan maturity.
For a 100,000 euros mortgage loan with 30 years repayment, the interest rate is fixed over the first year, ranging between 4.9% and 5.5%, while for the remaining years the interest rate ranges between 3.2% and 3.8%.
Ancoria Bank offers home schemes for up to 60% of the estimated value of the property. For a loan amount up to €300,000, the interest rate is 1.99% and with a repayment period of 35 years.
Debtor’s age must not exceed 65 years at loan maturity.
Housing Finance Corporation (HFC)
HFC offers long-term housing loans up to €450,000 for the purchase or construction of a property with a repayment period up to 40 years.
For renovation works and energy efficiency improvements to homes, there are loans up to 100,000 Euros and a repayment period up to 15 years.
And for the purchase of a residential plot, there are loans up to 300,000 Euros and a repayment period up to 30 years.