Owning a house in North Cyprus is way easier than many expect. Along with affordable property prices, by utilising the home loan opportunities Cyprus banks have to offer with low interest rates, you too can own a home in Cyprus.
What is a Home Loan?
A Home loan is a type of loan provided by banks to people who want to pay for a house in instalments. Home loans in North Cyprus are given with maturity dates up to 120 months.
Before buying a house in North Cyprus, review our property guide: Cyprus Property Guide: Buying a House in North Cyprus
North Cyprus home loans cover a portion of the value of the real estate you want to purchase. Usually, up to 80 percent of the real estate value, whose loan utilisation rates are determined by the bank’s appraisal process, is provided by the bank at the stage of purchasing a house. The sale value of the house is calculated by bank appraisals.
While this loan utilisation rate can be provided at the levels of 75 percent for properties with Turkish or Exchange title deeds, the utilisation rate is usually at 80% for homes with Turkish Mainland Title deeds. For more information on title deed types, you can check this page: Types of Title Deeds in Cyprus: How many are there? How are they different?
What are the application requirements for a home loan in Cyprus?
Although application requirements for a home loan in North Cyprus differ from bank to bank, the general requirements are usually as follows:
- Being a TRNC citizen or residing in the country with a work/residence permit
- Having worked in Cyprus for more than 1 year
- Being of age to benefit from a life insurance policy for the term of the loan
- Documents showing income status (payroll, bank statements, etc.)
- Guarantor according to the size of the loan
You can withdraw loans in Turkish Lira or foreign currency such as US Dollar, Euro, British Pound with a maturity time of up to 120 months.
What are the required documents for a home loan application in North Cyprus?
- Copy of ID or passport of the person who will use the loan
- Photocopy of ID or passport of the person who will be the guarantor of the loan
- Loan request form
- Documents showing income belonging to the person who uses the loan and is the guarantor
- Residence certificate, electricity or water bills of the person who uses the loan and is the guarantor
- Documents showing the financial risk status of the person who uses the loan and is the guarantor
- Appraisal report prepared by the loss adjusters accepted by the bank over the last 3 months
- Account status document (Can be requested in high volume loan allocations)
During the application process of home loans in North Cyprus, banks usually offer life insurance and property insurance to manage the risk of non-repayment in case of death or disability. Having these insurances will ensure that neither you or your loved ones are effected in the unfortunate event of not being able to pay the loan.
Which banks give home loans in Cyprus?
There are many options for banks that give home loans in North Cyprus. For more information visit the websites of the banks listed below:
- Kıbrıs Vakıflar Bankası
- Akfinans Bank
- AlBank
- Asbank
- CapitalBank
- Creditwest Bank
- Garanti Bankası
- Halkbank
- Kıbrıs Faisal İslam Bankası
- Kıbrıs Türk Kooperatif Merkez Bankası
- Limasol Türk Kooperatif Bankası
- Near East Bank
- Nova Bank
- Türk Bankası
- Türkiye İş Bankası
- Türk Ekonomi Bankası
- Universal Bank
- İktisatbank
- Şekerbank (Kıbrıs)
- Ziraat Bankası
Newly built Cyprus real estate projects can provide much lower interest rates due to the agreements made by the construction companies with the banks. If you want to buy a house with advantageous opportunities in Northern Cyprus, we recommend you to examine the newly built real estate projects.
