HOUSING LOANS FOR NON-RESIDENTS

Purpose  The loan can be used to buy a house, an apartment, or an office space in Cyprus   Who can benefit  Foreign Nationals, whether living in Cyprus or not  People of Cypriot origin living abroad  Offshore Companies and PersonnelCharacteristics  It is available in any major currency such as: USD, GBP, JPY, CHF, and EURO  The loan amount can be maximum 70% of the force sale value of the property  The interest rate will be LIBOR 3 months plus 2,5%.   Repayment  The maximum repayment period is 15 years.  Repayment is in monthly or quarterly installments, commencing one month or three months after the loan is granted.  During the repayment period, interest accrued is also paid (every three months)    Advantages  The customer can choose the currency.  Competitive Interest Rates are offered.  There is a long - term repayment period.  The size of the loan depends on the needs and repayment ability of the customer.  An investment in Cyprus is always a good opportunity.   Regulations  The property should be paid by foreign currency imported into Cyprus and converted to Cyprus pounds.     This requirement is satisfied if the property is paid by a loan granted in foreign currency.  The acquisition of property in the name of a non-resident requires the approval of the District Officer.  The registration of property in the name of a non-resident requires proof of the import of foreign currency  to be presented at the Central Bank of Cyprus, if the value of the property is over CYP60.000,00. Requirements for a housing loan application To proceed with a housing loan application we need the following: 1. Photocopy of applicant’s passport (the page showing photograph of holder and personal details) 2. Bank reference 3. Income information, such as: copies of the last 3 months salary advice, copy of last year's tax clearance or any other documents proving income. 4. Copies of last 3 months Bank statements. 5. Copy of Sale contract Note: The Sale contract needs to be - Stamped with the required stamp duty - Witnessed by two witnesses - Deposited with the Land Registry within 2 months from the date of signing. 6. Copies of the payments made for the property so far. 7. Copy of Title of the property to be purchased 8. Copy of application/approval from District Officer for the acquisition of immovable property in Cyprus by a non-resident. The security required by our Bank for the granting of a housing loan can be any one of the following: 1. Lien on fixed deposit account with Bank of Cyprus 2. Mortgage on the purchased property (where there is a separate title deed for the property) 3. A letter of guarantee issued by the seller of the property in favor of our Bank, guaranteeing the issue of the title in the name of the buyer, PLUS the assignment of the applicant's rights on the contract of sale. Our arrangement fee for the granting of the loan is 1% on the loan amount, payable in advance. Other costs to be considered: 1. Valuation fee of the valuator (valuation of the property is needed for assessing the loan application) 2. Fees for the transfer of the title to the buyer, payable to the Land Registry Office 3. Mortgage Fees payable to the Land Registry Office 4. Stamp Duty on Mortgage and Loan documents 5. Commission for the letter of guarantee (if one will be issued instead of mortgaging the property) For further information or questions that you may have please contact: Mr Cosmas Ploutarchou Bank of Cyprus Ltd, International Business Unit, Larnaca. Tel. No.++357-24-844416, Fax. No.++357-24-655644 Email:ibu.larnaca@cy.bankofcyprus.com