Buying a home in Cyprus may be more achievable than you think. Especially with the growing number of mortgage options now available to overseas buyers. Whether you’re looking for a sun-soaked retirement retreat or planning a long-term relocation, understanding how mortgages work in Cyprus is essential.
Let’s walk through the mortgage process, explain eligibility criteria and highlight key tips for securing a favourable deal as a non-resident in 2025.
Contents
- Can international buyers get a mortgage in Cyprus?
- Mortgage options in Cyprus for overseas buyers
- Eligibility criteria for foreign citizens
- Types of properties supported by Cypriot mortgages
- The mortgage application process
- Tips for securing the best mortgage deal
Getting an international mortgage is simple – if you have the right experts
Can international buyers get a mortgage in Cyprus?
Yes, non-residents can apply for housing loans in Cyprus. While the term “mortgage” is commonly used in English, you’ll hear locals refer to it as a “housing loan”. In 2025, Cypriot banks continue to support overseas buyers, although the terms vary. What you can borrow depends on your residency status, income and the type of property you’re purchasing. Mortgages are generally offered for amounts starting from €75,000 and can go up to €500,000. It all depends on the lender and your borrower profile.
Each bank has its own lending criteria. Foreign nationals without Cypriot residency may be asked for a larger deposit and may face tighter lending conditions. Most lenders will not allow you to use the property for commercial purposes such as short-term rentals if you’re purchasing with a mortgage. Buy-to-let mortgages are typically restricted to residents or commercial buyers with established ties to Cyprus. Additionally, joint mortgages for unmarried couples are often unavailable.
For more information on every step of buying a property in Cyprus, get your copy of our free Cyprus buying guide
Mortgage options in Cyprus for overseas buyers
Cypriot banks usually offer both fixed-rate and variable-rate mortgages. Fixed-rate loans give you predictable monthly payments, often over a longer term than in the UK. Variable mortgages, on the other hand, follow changes in the base interest rate, which in Cyprus is influenced by broader eurozone monetary policy.
At present, interest rates in Cyprus range from around 2% for lower-risk, new-build loans to upwards of 7.5% for higher-risk or resale properties. New-build homes tend to attract more attractive terms, and some developers even act as mortgage guarantors. This can increase your approval chances. Most loan terms span from 5 to 40 years, although your age at the end of the mortgage will usually need to be under 65. Your monthly repayment must not exceed 30% of your net income.
Banks also offer special schemes for first-time buyers and early repayment options. In some cases, you can even get discounted rates if you open a current account or take out home insurance through the same bank. Your broker can help identify which product suits your circumstances best.
For more detail on this, read our article on finding a Cypriot mortgage broker.
Eligibility criteria for foreign citizens
Eligibility depends on several factors such as your income level, employment stability, nationality and residency status. In general, you must provide proof of stable income, employment, identity documents and bank statements from the last six to twelve months. If you’re self-employed, expect to provide audited financial statements or tax returns, ideally translated into Greek or English by a certified translator.
In 2025, mortgage lending rules remain cautious, especially for foreign citizens. Most banks allow loans up to 70% of the property’s value for non-residents, although this can drop to 50% for resale homes without title deeds. Conversely, Cypriot residents may be eligible for up to 80% or even 90% in some cases, particularly first-time buyers. Married couples can apply for a joint mortgage, but unmarried applicants must apply individually.
The maximum borrower age is typically capped so that the mortgage term ends before your 65th birthday. Some lenders are slightly more flexible if you have substantial deposits or passive income sources. Either way, your financial strength must match the loan size being requested.
Types of properties supported by Cypriot mortgages
Cypriot banks lend for both residential and commercial property purchases, although approval is more likely for residential homes in newer developments. Mortgages are most commonly approved for apartments, villas and townhouses, especially if located in popular locations such as Limassol, Paphos, Larnaca or the capital Nicosia. Buying in areas where developers are well-known and paperwork is streamlined also increases your borrowing potential.
When purchasing a resale home, securing a mortgage can be more complex. Banks often request a Certificate of Registration or ownership title from the seller. If these are not available, the lender may refuse to approve the loan. For new properties, some developers work closely with banks and may even offer to guarantee the loan themselves, making the approval process smoother. You can typically borrow a higher percentage for new homes and benefit from reduced rates with some lenders.
If you’re considering buying farmland, rural property or land for redevelopment, expect stricter criteria and potentially higher deposit requirements. Always confirm with the bank or broker which property types they support before committing to a purchase.
The mortgage application process
You should get professional guidance when applying for a mortgage in Cyprus. A bilingual mortgage broker can simplify the process, especially if you’re unfamiliar with Cypriot financial terminology or the legal system. Brokers can also help you compare deals from multiple banks, saving you both time and money.
You’ll start by providing documentation to assess your affordability. This includes identification, proof of income, tax returns, bank statements and occasionally an employment reference. Once preliminary approval is granted, you can proceed with signing a purchase agreement. The bank will also require a property valuation, which you will usually need to pay for upfront. Expect this to cost between €200 and €500 depending on the property type and location.
There is also a bank administration fee, often around 1% of the loan value. Some banks charge extra for early repayment, so make sure these terms are clearly outlined in your mortgage agreement. It’s also common for the bank to require you to take out life and building insurance as part of the loan conditions.
Tips for securing the best mortgage deal
Getting the best mortgage in Cyprus starts with understanding how lenders assess risk. If you are not a Cypriot resident, consider applying for residency – even part-time – to improve your loan terms, including deposit requirements and interest rates. Non-residents face stricter scrutiny, often needing at least a 30–50% down payment depending on the property and whether it’s a new build or resale.
Presenting solid financials will strengthen your case. This includes clear proof of income, a low debt-to-income ratio, and a good credit history in your home country. If applicable, including a co-applicant with similar financial strength can also improve your approval chances.
Opting to buy through a reputable developer may open up favourable financing schemes, including lower starting rates and assistance with paperwork. Additionally, working with a broker who knows the local lenders and foreign buyer policies can help you negotiate better terms. Don’t forget to factor in currency exchange if you’re bringing money into Cyprus. Speak to a currency exchange specialist, like Smart Currency Exchange, to learn about tools like forward contracts that can shield your budget from fluctuations.
Finally, get a bilingual legal expert before signing any agreement. This way you can make sure the mortgage won’t tie you up with hidden obligations tied to the mortgage. A bit of upfront due diligence can save thousands in the long term.
Ready to begin your Cypriot property journey? Book a free consultation with a trusted property expert today and let Your Overseas Home guide you every step of the way.
