We keep saying this it seems, in most of our activity articles here on Essential Cyprus, that there are many ways to see and appreciate North Cyprus – this one is just another fantastic way of doing so! If you have ever been on holiday in a coastal location in Turkey, then you may already understand the concept of taking a boat trip here too.
Well and truly gone are the days where the only opportunity to finance a property in North Cyprus was with pure cash. The market years ago was very much a cash buyers dream, but these days people are now finding that they can obtain a mortgage in North Cyprus, to help finance their property purchase.
Research would actually suggest that in recent years at least half of those buying homes in North Cyprus prefer to pay in installments or look for alternative financing for their property purchase. This then may well be why we have seen more banks and finance institutions opening up options to those looking for finance in North Cyprus. Both local and international banks seems to be in the picture here too, in being able to offer local and overseas North Cyprus property buyers, various options.
As of today, you have various options to buy a home in North Cyprus, whether it be one under construction, a brand new ready property or one that has been preowned:
Under Construction – Financing in the form of interest-free stage payments throughout the build process (which can be extended once completed too)
Brand New / Key Ready – Developer loan financing and bank mortgages
Pre Owned – Cash and bank mortgage
So, if you do need some finance to make up a shortfall when looking to make an investment in property, then it may not be as difficult or time consuming as you may think. Of course, many North Cyprus property developers also offer payment plans and loans, where you can pay in installments across the life of the construction. But, if you are looking to buy an already finished property, that seems too good an opportunity to pass you by, then you can look at external financing, which often offer lower interest rates then financing from a developer.
Since 2018 North Cyprus banks have been able to offer low interest mortgages for up to 50% of the property price. This is on key ready/resale apartments and villas with their own title deed. Obviously any mortgage is dependent on the financial status of the buyer. Applying for a mortgage is releatively easy in reality, with some of the usual form filling, requiring proof of income etc., and then waiting for the go ahead, which in general takes up to around 3 months.
Banks will charge a fee for a mortgage application, much like they do in the UK, with an estimated cost of around £600 made by most banks in North Cyprus. The interest rates at the time of writing are 6.45%, whereas developers can charge around 7%, so it is worth looking at both scenarios and at the pros and cons of both options, should you have the benefit of a choice on the property you wish to buy.
Again the benefits of stage payments for a property under construction would be that each stage payment is interest-free (with some developers extending the payments for an additional period after the property build is complete, if necessary), developer financing tends to be at a higher interest rate, and banks having a limited time period of up to around 10 years maximum. It should also be noted that payment holidays or interest-free payment periods with North Cyprus banks are not an option. An added benefit of taking out developer financing is that it is usually ‘non-status’, meaning that you do not have to have to provide documentation to prove your financial status.
Another positive with mostly all these payment options is that you are free to sell the property before the end of the payment terms if you need to, you can pay off the loan early should you wish and with most bank mortgages, you are able to rent out your North Cyprus property too (some require notice that you intend to do that).
So, there you have, a brief rundown of financing options for buying your home in North Cyprus! If you need any help, advice, or just need pointing in the right direction then feel free to send us a message!
There is no one who enjoys a good ruin more than Essential Cyprus, although this one won’t be a ruin in the near future, as it is undergoing a hopefully wonderful, authentic, restoration after being gifted some EU funding. We shall report back on that once it is finished!
As the nature of things is always about change these days, you won’t be surprised to learn that a big change has happened to those expats who are over the age of 60 and living in North Cyprus and that change is Temporary Residency!
We have spoken to many a tourist who has had the guts to walk in to a traditional Turkish Cypriot barber shop in North Cyprus after hearing some of the tales that have been told about big cut-throat razors and pummelling bone crunching massages, so we thought we would give you the low down on what to expect if you decide to give it a go – and we have to say it all sounds very sedate!
If you are thinking of taking the plunge, getting hitched, tying the knot or making it ‘official’ so to speak, then there are places of romance all over the world where you can do so, but a great option and perhaps possibly the only option, being the birthplace of Aphrodite, would be North Cyprus! Add to that the sunshine, the stunningly scenic and panoramic backdrops and you can’t go far wrong!
To get the legalities over and done with first – all marriages are legal and legitimate internationally so it doesn’t matter if you come from such places as the UK, Russia, Canada, America or the rest of Europe, you can legally wed here in North Cyprus.
There’s plenty to keep children and adults busy when visiting or living in North Cyprus, and whilst researching this article we were pleasantly amazed at the amount of activities that you can get involved in – we never knew there so much to do before!
There are many beautiful ways in which to see and explore North Cyprus, but what better way than to do it on horseback?! Seasoned rider or novice, it doesn’t matter, you can take a trek with various organisations in a relaxed and safe environment.