Buying a property is one of the biggest investments you will make, especially when purchasing a newly built home in Cyprus. At A.M.Y Group, we specialise in developing high-quality residential complexes, designed to offer modern, comfortable and affordable living spaces for both homeowners and investors.
Financing a property purchase can be complex, especially for international buyers or those unfamiliar with the Cypriot market. This guide will help you understand the financing options available when buying a new build from a property developer in Cyprus, so you can plan your purchase with confidence.
1. Understanding Your Purchase: New Build Properties
When purchasing directly from a property developer like A.M.Y Group, your transaction differs from buying resale properties through a real estate agency. New build purchases often include different payment structures, such as staged payments or phased deposits, aligned with the construction progress.
This means financing needs to accommodate these specific arrangements, and understanding this is key to securing the right funding.
2. Mortgage Options for New Build Properties
If you require financing, Cypriot banks offer mortgages specifically tailored for new build properties. Here are some important points:
- Deposit Requirements: Typically, banks require a deposit between 20% and 30% of the property’s value for new builds.
- Loan to Value: Mortgage loans usually cover up to 70%-80% of the property’s value.
- Mortgage Term: Terms can range from 10 to 30 years depending on the borrower’s age and circumstances.
- Interest Rates: Rates vary based on the bank, loan type, and borrower profile, so it’s important to shop around.
It is worth noting that banks might request a signed contract with the developer and proof of paid deposits before approving financing.
3. Payment Plans Offered by Property Developers
One of the advantages of buying directly from a developer is the availability of phased payment plans. At A.M.Y Group, we provide flexible payment schemes to support buyers, which can include:
- Initial reservation deposit
- Staged payments aligned with construction milestones (e.g., foundation, frame completion, finishing)
- Final payment on property handover
- A.M.Y Group can secure up to 60% of the purchase price loans with Cypriot local banks (contact us for more information about this)
These payment plans reduce the immediate financial burden and help buyers manage cash flow throughout the build period.
4. Additional Costs to Budget For
Besides the purchase price, buyers should consider other costs associated with financing new properties:
- Value Added Tax (VAT): New build purchases in Cyprus are subject to VAT, usually at 5% for primary residences under certain conditions, or 19% for investment properties.
- Legal Fees: Typically between 1%-2% of the purchase price for conveyancing and due diligence.
- Stamp Duty: Based on property price brackets.
- Mortgage Fees: Bank application fees, valuation fees, and mortgage registration fees.
- Insurance: Home insurance is advisable and often required by banks.
Planning for these costs early helps avoid surprises during the purchase process.
5. Working with Professionals
While A.M.Y Group focuses on delivering quality homes, we recommend engaging with legal and financial advisors experienced in Cypriot property transactions. They can assist you with:
- Understanding mortgage contracts and financing terms
- Conducting due diligence on property and developer guarantees
- Advising on tax implications and VAT eligibility
Our team can connect buyers with trusted professionals to ensure your purchase is secure and well-informed.
6. Why Choose A.M.Y Group for Your Property Purchase
As a property developer, A.M.Y Group builds modern residential complexes with multiple units for sale in Limassol, Cyprus. Purchasing directly from us means:
- Transparent payment plans tailored to your needs
- Properties built to high standards, ready for immediate occupation or investment
- Support throughout the purchase and financing process
- Commitment to delivering quality homes and long-term value
We’re dedicated to making your property purchase as smooth and straightforward as possible.
Conclusion
Financing your property purchase in Cyprus requires understanding the unique aspects of buying from a developer and the local mortgage market. With careful planning and the right support, owning a brand-new home in Cyprus can be a rewarding investment.
If you’re interested in our current developments or want to discuss financing options, contact A.M.Y Group today to speak with our team.
