25 May 2015
The second biggest bank in Cyprus by market share, Hellenic bank, announced today that it would offer mortgages to foreigners for the purchase of properties in Cyprus.
The headline requirements state a minimum contribution of 30% of the purchase price and the current interest rate stands at 5,3%.
The latest development of Hellenic’s offer represents a welcome overture to the return of financial support to overseas buyers, unavailable since 2012. However we expect the application process to be quite strict and thus our recommendation would be to look for 50% rather than 30% of contribution of the property price to avoid disappointment.
It comes as no surprise that properties with title deeds will have the best chance of obtaining bank finance. While Hellenic bank is the first we would expect Bank of Cyprus to follow suit for the of fear losing market share.
Capital controls are now gone and Cypriot economy is now showing the first growth in 4 years. It’s pretty plain that the market bottom has been reached and that there is no better time to buy your home in Cyprus. Given the favorable exchange rate of euro against sterling and the rapidly recovering Russian rouble don’t miss this unique opportunity to find your bargain Cypriot property.