Obtaining a mortgage in Northern Cyprus is an issue that worries many foreigners. Creditwest Bank offers mortgage programs for foreign citizens, but with a number of conditions and requirements. Let's look at the basics to help you assess whether this option is right for you.
Conditions for obtaining a real estate loan from Creditwest Bank
- Loan amount:
- The bank lends up to 50% of the value of the property. The down payment is at least 50%.
- Interest rate:
- 9% per annum for loans in euros (€), US dollars ($) or pounds sterling (£).
- Loans in Turkish Lira are only available to local residents with income in local currency.
- Loan term:
- The maximum term is up to 10 years.
- Guarantors:
- Not required.
- Early repayment:
- The commission is 0.5% of the loan balance.
- Bank commission:
- 3% of the loan amount.
- Insurance:
- It is mandatory to conclude a property and accident insurance contract.
- Policies are issued through the Creditwest insurance company for the entire loan term.
Required documents
To apply for a mortgage you will need:
- Passport.
- Confirmation of residential address.
- Certificate of good conduct.
- Documents confirming income (salary statements, deposit statements, rent payments, etc.).
- Tax return.
- Credit history.
For pensioners:
- Extract from the pension fund.
- Bank account statement for the last 12 months indicating the amount of pension.
Features of mortgage lending
- Requirements for the property:
- The property must have an individual title.
- If the title has not yet been issued, the developer acts as a guarantor.
- Permission to purchase:
- Before applying for a mortgage, you must submit an application to the Council of Ministers for permission to purchase real estate and receive a positive response.
- Object value assessment:
- The assessment is carried out by an independent expert.
- Developer's agreement:
- If the property deeds are not ready, the bank may accept the agreement between the developer and the buyer. In this case, the developer becomes the guarantor until the paperwork is completed.
Advantages of a mortgage from Creditwest Bank
- No requirement for guarantors.
- Flexible conditions for properties without registered titles.
- Possibility of lending in three main currencies: €, $, £.
Important Notes
- Loan terms may change. Before submitting an application, check with bank managers for current information.
- Be sure to make calculations based on your financial capabilities to assess how profitable it is to take out a mortgage in your case.
Conclusion
A mortgage loan from Creditwest Bank is a convenient way to finance the purchase of property in Northern Cyprus, especially if you are willing to contribute 50% of the cost from your own funds. However, in order to avoid possible risks and hidden costs, it is recommended to carefully study all the conditions and consult with bank managers before making a decision.
