Payment Plans and Mortgages
If you are looking to buy property in Northern Cyprus, you can easily obtain a mortgage from your construction company or pay for your house via an interest-free installment payment plan. Furthermore, you don’t even need to provide proof of income, bank account statements or co-signers. You only need to choose the property you want to live in and make a deal.
Why it is so easy?
It is so easy and straightforward because in Northern Cyprus, you obtain the loan directly from the construction company, not from a bank. While banks seek to receive profit from the loan, construction companies have different goals. They issue loans in order to induce buying and receive initial funds for off-plan projects simultaneously. In other words, they want you to buy the property. Therefore, there are plenty of loan schemes that suit various buyer needs.
Here is the best part, construction companies in Northern Cyprus are always ready to negotiate individual payment plan conditions.
If you choose not to reside in Northern Cyprus, you can hire a property management company. They will take care of your property and rent it out when you are away from the island. The rent generated by your property for several months per year may actually cover your annual mortgage cost. Property investments in Northern Cyprus are a good deal! The Northern Cyprus property market is characterized by significant price growth and huge diversity of objects.
Paying for property on installment basis
An interest-free installment payment plan essentially means that you pay for your home without have to make a significant bulk payment and you don’t pay a cent above the sales price of the property.
Initially, you will have to make a down payment of 20-30% of property price at the time of sale. The balance will be paid via equal installments according to a comfortable payment plan, negotiated with the construction company. Generally, this sort of installment payment plan is usually fir about 6 to 36 months.
Some construction companies provide alternative payment plans for customers buying off-plan property. The main distinction of this type of payment plans is that you pay a specified part of property price at the beginning or end of each construction phase. For example:
- £5000/€5900 for reservation the object
- 35% less reservation fee is paid in time of the exchange of contract
- 15% is paid upon completion of foundation
- 20% is paid upon completion of property frame
- 20% is paid upon completion of windows
- 10% is paid when receiving keys from the house waiting for you to move in.
As you can see, paying for property in Northern Cyprus is simple and straightforward. In addition, you can always track the progress of construction via Skype or by visiting Northern Cyprus.
Mortgage in Northern Cyprus
In case you need a loan for more than three years, the construction companies have another payment that might be just what you need.
Mortgage interest rates in Northern Cyprus start from 5.2%. This is comparable with mortgage interest rates in USA and Canada. In addition, mortgages in Northern Cyprus usually don’t have annuities. You always know, the exact amount paid as the loan’s principal and interest. Such stability makes mortgage payments in Northern Cyprus comfortable and transparent. It gives you an opportunity to manage your finance effectively.
The normal period for a mortgage in Northern Cyprus is about 3 to 10 years. However, you can repay it faster than it is specified in the contract. You will not be penalised for full payment before the term is met. You can obtain a mortgage for existing property or invest in an off-plan construction project. Some construction companies may postpone loan payments until the project is finished. One more pleasant bonus is opportunity to rent out, sell and control the property according to your wishes even before the loan is fully paid off.
Sometimes, you can find exceptional mortgage offers, such as Payment Plan is as follows:
- 25% down payment at the time of sale
- No payments till the end of construction in the end of 2018
- The rest is paid for up to 10 years after delivery with only 7% annual interest
- + Two years after delivery you are entitled with 15% rental guarantee (7.5% annually), calculated as of property price at the date of completion.