More information

• Who is eligible?

  Physical persons, permanent residents of Cyprus who want to renovate their primary residence or their holiday home.

  For further information, please contact the Service Officers of our branch network online, by phone or by written application.

• What are the interest rate options?

  You can choose between:

  • a fixed interest rate for 3, 5 or 10 years which then changes to variable after the end of the fixed rate period.
  • 25 years fixed interest rate for the entire term of the loan.
  • a variable interest rate for the whole duration of the loan.
• What is the repayment period?

  Minimum duration

  5 years:

  • for a loan with a variable interest rate from the beginning
  • for a loan with a fixed interest rate of 3 years

  10 years:

  • for a loan with a fixed interest rate of 5 years 

  15 years:

  • for a loan with a fixed interest rate of 10 years 

  Maximum duration

  • 20 years where the structure of the property is changed
  • 10 years for all other types of renovations

  Duration of a mortgage loan with a fixed interest rate of 25 years

  The duration cannot be shorter or longer than 25 years.

• Maximum age of borrower loan maturity?

  The borrower maximum age at loan maturity is 65 years

• Are there any initial charges?

  There are no initial bank charges.

• Is there a grace period?

  Up to 12 months on capital.

• Is there a right of withdrawal?

  You have the right to withdraw from the agreement within 5 business days from the date of its conclusion

• Are there any other preconditions?

  You have to submit all necessary architectural plans and certificates. Mortgage of the property to be renovated is required.

• What is the interest rate?
  • Bank of Cyprus Public Company Ltd (the “Bank”) offers housing loans with variable interest rate based on the European Central Bank Base Rate (“ECB Base Rate”) and the Bank of Cyprus Base Rate (“BCBR”).
  • It is noted that the margin based on the ECB Base Rate is currently and indicatively from 2,20% to 2,35% and the total interest based on the ECB Base Rate is currently and indicatively from 5,60% to 5,75%.
    It is noted that the margin based on the BCBR is currently and indicatively from 3,20% to 3,35% and the total interest rate based on the BCBR is currently and indicatively from 4,95% to 5,10%.
  • The interest rates offered vary based on criteria evaluated and applied by the Bank in accordance with its credit policy as applicable from time to time, taking into account factors such as customers’ credit history, the collateral, the loan amount and loan duration, as well as the applicant’s contribution.
  • For more information, please contact any of the Bank’s branches.

   

  For indicative examples click here.

• Useful information on interest rates, fees and installment payments

  What options are there regarding interest rates?

  For some loans you can select a floating interest rate or a fixed rate for a specific time period.

  If you select a fixed interest rate, the interest rate will remain fixed for the specified period agreed with the Bank (e.g. 5 years). It will not change under any circumstances. Thus, your installment remains fixed, unaffected by a possible rise in interest rates, however it should be noted that, at the same time, you do not benefit from a possible reduction in interest rates. At the end of the fixed rate period, the loans are converted to floating interest rate loans, except for 25-year fixed interest rate loans, where the interest rate remains fixed for the entire term of the loan.

  If you choose a floating rate loan, then the interest rate can be changed at any time (upward or downward). The variable interest rate consists of the base plus margin. Every time the total interest rate changes, your loan installment will also change.

  What are the initial fees?

  Some loans may bear initial fees, payable upon the granting of the loan.

  Initial bank fees

  • Arrangement fees: these relate to the Bank’s costs for preparing and evaluating your application.
  • Documentation fees: a fixed charge for the preparation of loan documents,; the charge is determined by the loan amount.

   Government fees

  These fees are regulated by law as follows:

  • Mortgage registration fees paid to the Land Registry.
  • Fees relating to stamping the loan documents and paid to the Commissioner of Taxation.
  • Fees paid to the Land Registry in cases where the transfer of property from one owner to another is necessary.

   

  Fees paid to third parties

  These are fees related to valuations carried out on behalf of the Bank by approved valuers for mortgaged property, or fees related to life and/or home insurance.

  Find out about all Bank fees from the Table of Commissions and Charges

   

  What do I need to know about loan installment payments?

  • You can provide instructions in writing, so that your installment is paid automatically from your current account.
  • You can pay your installments as determined by the terms of your loan. Please make sure to designate a date that is convenient for you. Should this date change, you need to promptly contact your personal banker.
  • Delayed installment payments incur additional costs, increasing the cost of your loan.
  • Should your financial circumstances change and you are unable to keep up with installment payments per the terms of your contract, please get in touch promptly with your personal banker in order to agree a new repayment schedule adapted to your new circumstances.

   

  What happens if I pay off my loan/installments early?

  Where a loan is paid off early, or installments are paid early in relation to the agreed schedule, the Bank will charge costs depending on the type of interest rate and the amount that was paid off early.

  In case of loans with a long duration of fixed interest rate, the cost of early repayment may be significant.  The cost of early repayment that is estimated by the Bank mainly depends on the interbank market interest rates which fluctuate on a daily basis as well as on the date of early repayment. For more information you can contact a Relationship Officer in our Branch network.

  You may also be informed about all Bank fees from the Table of Commissions and Charges

  What is the Annual Percentage Rate (APR)?

  The Annual Percentage Rate (APR) is the total cost of the loan to the consumer, expressed as an annual percentage on the loan amount. The APR includes all loan expenses paid by the client to either the Bank or to third parties (e.g. government fees, valuation expenses, insurance etc).

  The APR is considered to be the best tool as it includes all loan expenses. It helps you form a complete picture and to compare the Bank’s schemes with the schemes of other banks.