Digital Housing Loan

Yes. You can download the BoC Mobile app and register. Then, you will be able to connect to 1bank (terms and conditions apply). You can apply for this facility via Internet Banking.

You will be informed of your application status via a message on your mobile or via 1bank.

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 2,00% to 2,35% and the total interest rate based on the ECB Base Rate is currently and indicatively from 5,40% to 5,75%.
- It is noted that the margin based on the BCBR is currently and indicatively from 3,00% to 3,35% and the total interest rate based on the BCBR is currently and indicatively from 4,75% 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.

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 interest 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.

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).

The APR is considered to be the best tool for comparing the actual cost, 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.

You will be asked to provide some supporting documents to verify the information you have provided in your application, such as proof of income. In addition and depending on the details of the application you will be requested to provide documents that are necessary for the evaluation of the application and the issuance of the loan contracts.

Specifically:

Proof of income

For employees/pensioners:

payroll. In some cases, a social insurance statement may also be required, and
proof of the amount of pension you will be receiving if during the loan period there is a time when you will be receiving pension. This information is obtained from the Citizens’ Service Centre or from the Social Insurance Services Department.

For self-employed individuals:

tax form
recent financial statements
social insurance statement or income certificate from an accountant/auditor
copy of VAT statements (where applicable).

For those who declare additional income:

proof of social benefits provision document, (e.g. for a single-parent family): recent remittance receipts or approvals for their provision
proof of receiving alimony: recent remittance receipts
proof of income from real estate (e.g., rents): title deed, rental agreement, or recent remittance receipts
proof of income from dividends or other investments (recent financial statements of the company and a statement from an accountant/auditor dated from the date of the financial statements or of the tax statement).

It is noted that the submission of the above-mentioned information and the duration for which it is requested depend on the details of the application.

Proof of collateral

Before the decision is made by the Bank:
For unfinished properties:

Sale agreement between buyer and seller
Certificate from an architect/engineer for the cost and duration of the construction
Title deed of the current owner.

For properties whose construction has been completed:

Sale agreement between buyer and seller

Acceptance of offer (in cases where the property is purchased by a debt acquisition company).

After the decision is made by the Bank:

Energy performance certificate category A (valid for Green Loans and issued by specialist experts included in the Register of Qualified Experts). The list of qualified experts is posted on the website of the Ministry of Energy, Commerce and Industry.
Advance payment receipt (where applicable)
Distribution/Division of Property Agreement if it exists (where the property under purchase/construction concerns a share)
Planning permit issued by the Provincial Self-Government Organisation - Department of Town Planning and Housing, depending on the area where the property is located.
Building permit issued by the Provincial Self-Government Organisation in which the property is located.

Applications are assessed electronically based on the categories of personal data listed in the consent for the processing of personal data.

The decision for the approval or rejection of the online credit application is reached after your personal data has been processed, using only automated means (including profiling), without human involvement, and only after you have given us your explicit consent to do so.

Profiling under this procedure involves the automated processing of your personal data.

The Bank will use only your necessary personal data as listed in the consent for the processing of your personal data, to make responsible, fair and informed decisions on whether to grant a credit facility.

The application may also be automatically referred to the Bank for further evaluation by an officer.

Yes, you have the right to request re-examination of the application by a Bank’s officer by contacting your servicing Branch.

You can withdraw your application at any time before it is submitted to the Bank. You have the choice to save any information provided and resume the application at a later stage or discard it. If you choose to discard it, the information you entered will not be saved. Your application will be automatically discarded if it is not submitted to the Bank within a period of 15 days from its initiation.

If a decision is reached by the Bank, you can still withdraw your application at any time before entering into a contract for the granting of the facility, but before the expiration of the decision, as mentioned in the relevant notification letter. This does not affect your other rights regarding the processing of your personal data.

You can also withdraw from the contract within 5 working days from the date of its conclusion or from the date on which you receive a copy of it, if this is subsequent to the date of entry, without stating a reason, provided that any costs incurred will be paid. If you withdraw any amount in the meantime, you lose the right of withdrawal. More information on your right to withdraw from the contract will be provided in the pre-contractual information for the credit facility which will be made available to you, as well as in the agreement for the granting of the facility.

The Bank is committed to protecting your privacy and handling your data in an open and transparent manner. You can learn more in the Bank’s Privacy Statement, where you can also find further details on your rights, for example your right of access, right to request correction, the right to lodge a complaint etc.

Upon approval of your application, you will receive a relevant message both on your mobile and in 1bank. An officer of the branch you selected to handle your application will contact you to deliver a copy of the binding letter of offer.
A period of 15 days is provided for the assessment of your application, so you have the flexibility to compare offers, assess their implications, and make an informed decision. You will be able to accept the offer after 5 working days from its receipt.
If you decide to accept and provided that the appraisal conducted satisfies the Bank regarding the property's values and aligns with its lending policy, you and the guarantors (if any) will be called to sign the contracts related to the loan.

After the signing of the contracts, the receipt of the guarantees and collaterals, and the fulfillment of other terms of the agreement, the loan will be granted in accordance with the terms of the decision.

The Green Housing Loan is granted when the financing is for the purchase or construction of your first or holiday home with a building Energy Performance Certificate category Α.
The Green Housing Loan is based on "Green Loan Principles" of the "Loan Market Association" ("LMA") as in force in February 2023.
Upon presentation of the Energy Performance Certificate category Α which is issued prior to construction, your Loan will be eligible to qualify as “Green”. Then, if you provide the Energy Performance Certificate category A which is issued after the construction of the building, your housing loan will be qualified as Green Housing Loan. The certificate is issued by authorized experts, registered in the Register of Specialized Experts. Their names are posted on the website of the Ministry of Energy, Commerce, and Industry.
Green Housing Loan is offered with variable interest rate for the entire duration of the loan and a fixed interest rate for 3,5 or 10 years in the beginning, then interest rate changes to variable.

For variable rate loans, the pricing is 0,20% lower than other housing loans offered by the Bank with variable interest rate.

For fixed rate loans the pricing is 0,20 % lower, only during the variable rate period, compared to the corresponding non-green loans offered by the Bank with a fixed rate at the start.

For financing buildings bearing an Energy Performance Certificate category A, which is issued after the construction of the building, then the 0.20% lower interest rate is offered with loan initiation.
For financing buildings bearing an Energy Performance Certificate category A, which is issued before the construction of the building, then a 0,15% lower interest rate is offered. When the Energy Performance Certificate category A, which is issued after the construction of the building is presented, then an additional interest rate reduction of 0.05% will apply on the loan.

The financed property must not be located within a designated “Natura” area.
A separate account, the “Dedicated Sight Account”, will be opened for all the payments related to the Green Housing Loan. The Bank will proceed with payments from this account, upon receival of relevant instructions by you. The Dedicated Sight Account will be linked only to the Green Housing Loan and cannot be used for any other purpose.

You can provide instructions in writing, so that your installment is paid automatically from your account.
You can pay your installments as stipulated 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 any of the Bank’s branches.
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 any of the Bank’s branches in order to agree a new repayment schedule adapted to your new circumstances.