Nowadays, many home buyers, even the ones who do not have difficulty with funds, understand all the benefits of credit plans. Low interest rate in North Cyprus, make credit plans attractive to anyone. The popularity of mortgages for property in North Cyprus is determined by the easy process of purchasing property in credit terms, the lack of any formalities related to the provision of documents, favorable credit conditions, as well as favorable interest rates on loans. In our experience, many home buyers in North Cyprus, purchase property using credit plans, however they become owners of the property straight after registration of the contract and not after the credit is paid off. For a foreign citizen, receiving a bank loan in North Cyprus is quiet a complicated process, therefore developers, with a view of attracting foreign buyers, offer flexible payment plans and credit loans.
Foreign citizens are very active property buyers in North Cyprus, therefore even those construction companies who do not have sufficient funds to provide credit for the customer, take loans in the banks and supply credit plans for the buyers. Credit for 10-15 years can be obtained in North Cyprus only using valid passport and down payment for the property. Property, that is being purchased using credit plan is transferred into buyer’s name immediately after signing the contract. The conditions of the CREDIT PLAN IN NORTH CYPRUS is written on the contract of sale. Acquired property becomes security guarantee for the loan.
Obtaining full ownership of the property (receiving title deeds in owner’s name) can be done only after full repayment of the loan. It should be noted that, despite the duration of the credit plan in North Cyprus, the buyer is the owner and is entitled to rent or sell property even if with outstanding credit. Moreover, with proper management of the acquired property, if it will be used for rental, not only does it cover all the costs of the loan, but also brings profit.
Since the loan in North Cyprus is provided directly by the developers, then the credit terms conditions offered are different. Terms of the acquisition of real estate loans vary depending on the project, payment terms and the market situation, but they share the following rules:
- To obtain a loan only valid passport is needed
- A down payment for the property ranges from 10% to 50%
- The interest rate varies from 5% to 13% per annum, depending on the builder
It is not hard to obtain a loan in Cyprus from the development company. You can arrange the purchase of property in Northern Cyprus with a credit plan, not even coming to the island for processing the transaction.
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