Loans
Before you sign a loan, see the real number: the monthly payment, the total interest over the whole term and what changes if you add a little extra each month.
Calculators
Good to know
- 1Most Cyprus banks offer mortgages at a variable rate linked to Euribor plus a margin.
- 2An extra €100 a month on a 25-year loan typically cuts 3 to 5 years off the term.
- 3A loan's cost is not just the rate: ask about arrangement fees, insurance and early repayment charges.
Frequently asked questions
How is a loan repayment worked out?
Each instalment is fixed and splits into interest and capital. Early on, most of it is interest and only a small part reduces the capital. Over the years the ratio reverses. That is why the total interest over 25 years is far larger than the rate suggests at first glance.
Fixed or variable rate in Cyprus?
Most Cyprus banks offer mortgages at a variable rate linked to Euribor plus a margin. The margin is the part you negotiate and it stays fixed; Euribor moves. Ask for both numbers separately when you compare offers.
Is it worth paying a little extra each month?
Usually yes, and the difference is bigger than you would expect. An extra €100 a month on a 25-year loan typically cuts 3 to 5 years off the term, because every extra euro goes straight to capital. Check first whether your contract charges for early repayment.
What does a loan cost besides the interest?
Arrangement and valuation fees, compulsory life and fire insurance, and a possible early repayment charge. Two offers at the same rate can have noticeably different total costs, so ask for everything in writing.