Green housing loan

The bank finances up to 80% of the property value for a first home, or up to 70% for a holiday home. You repay the loan in instalments with interest. Payments for the housing project pass through a separate Dedicated Sight Account: the bank makes payments on your instructions, and the account can only be used for this loan.

Choose a variable interest rate throughout, or an initial fixed rate for three, five or ten years followed by a variable rate. During the variable-rate period, the green discount is 0.20 percentage points compared with the bank's corresponding housing loan. An A-rated certificate issued before construction initially gives a 0.15 percentage-point reduction; presenting the A-rated certificate after construction adds 0.05 percentage points. A certificate issued after construction gives the full reduction from the outset, subject to the variable-period rule for initially fixed loans.

The minimum term is ten years for a variable-rate loan or a five-year initial fixed rate, and fifteen years for a three- or ten-year initial fixed rate. The maximum term is 35 years. Variable interest can rise or fall, changing your instalment and total cost.

Arrangement and documentation fees are waived for a first home but apply to a holiday home. A dedicated-account charge applies to property under construction. Mortgage registration, any necessary property-transfer fees, valuation and life or home insurance costs also apply.

Early repayment can cost money. For loans covered by Cyprus's 2017 law on consumer credit for residential immovable property, repayment during a fixed-rate period attracts compensation calculated under the law; during a variable-rate period the bank may charge administrative costs. Late instalments also add costs. Missing regular repayments can put your home at risk.