How is the total cost of your housing loan calculated?

The total cost of your housing loan consists of:

  • Interest
  • Initial fees paid to the Bank
  • Fees paid to the government (e.g. mortgage fees/stamps)
  • Fees paid to third parties (e.g. property valuation fees).

If the loan is not repaid regularly, additional costs may arise.

Useful information on interest

Interest Rate Selection

Interest charged on your loan is calculated according to the interest rate you agree with us. You may choose between a variable rate and a fixed rate (for a specific period, e.g. 3 or 5 years).

If you select a fixed interest rate, the interest rate will remain fixed for the specified period agreed with the Bank (e.g. 5 years). It will not change under any circumstances, so your installment remains constant. At the end of the fixed interest rate period, loans are converted into variable rate loans.

If you choose a variable rate loan, then the interest rate can be changed at any time (upward or downward). The variable interest rate consists of the base (Euribor or the Bank’s base interest rate for housing loans) plus margin. Every time the total interest rate changes, your loan installment will also change.

How is interest calculated

  • Interest is always calculated on the daily balance of the loan. As the balance of your loan decreases over time, so do the interest charges.
  • Interest is calculated by multiplying the daily interest rate of the loan with its daily balance.

What are the initial fees

Our housing loans may bear initial fees that are payable at the time the loan is granted.

Initial Bank fees

  • Arrangement fees: these relate to the Bank’s costs for preparing and evaluating your application.
  • Contract preparation costs: a fixed charge of €50 for the preparation of contracts for loans up to €20.000 and €75 for loans over €20.000. To find out more about our charges, ask for our price list.

Government fees

  • Mortgage registration fees paid to the Land Registry.
  • Fees relating to stamping the loan documents and paid to the Commissioner of Taxation.
  • Fees paid to the Land Registry in cases where the transfer of property from one owner to another is necessary.

Fees paid to third parties

These are fees related to valuations carried out on behalf of the Bank by approved valuers for mortgaged property, or fees related to life and/or home insurance.

What is the Annual Percentage Rate (APR)?

The Annual Percentage Rate (APR) is the total cost of the loan to the consumer, expressed as an annual percentage on the loan amount. The APR includes all loan expenses (including interest and all the costs you need to pay).

The APR is considered to be the best tool as it includes all loan expenses. It helps you to get a complete picture and to compare the Bank’s schemes with the schemes of other banks.

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