Introduction to loans options
Hellenic Bank offers a variety of loan products designed to meet the diverse needs of individuals and businesses in Cyprus. Whether you are looking to buy a home, make energy-efficient upgrades, invest in real estate, or finance essential home equipment, Hellenic Bank has a solution tailored to your financial needs. Each loan product comes with its own unique features, repayment terms, and benefits, providing flexibility and affordability for borrowers.
Hellenic Bank’s loan offerings are structured to accommodate a wide range of purposes, from purchasing a primary residence to making energy-efficient improvements or even acquiring investment properties. These loans are accessible to both permanent residents and non-residents of Cyprus, with competitive interest rates and flexible repayment terms. Additionally, the bank ensures transparency and provides clear guidelines on the required documentation, application process, and loan eligibility criteria.
Below, we explore the key features, conditions, and unique aspects of each of Hellenic Bank’s four main loan types: the Home Loan, the Green Home Loan, the Real Estate Loan, and Home Equipment Financing. Each loan type is designed to cater to specific financial needs, making it easier for individuals to achieve their personal or investment goals.
Home Loan
The Home Loan offered by Hellenic Bank is ideal for individuals who are permanent residents of Cyprus and are looking to purchase, build, or renovate their primary residence. This loan can also be used to transfer an existing mortgage from another bank. Borrowers can finance up to 80% of the property’s value, with the remaining 20% either being paid upfront or financed by the bank through a mortgage on another property.
Key Features:
- Repayment term: Up to 30 years or until the borrower reaches 65 years of age, whichever comes first.
- Capital grace period: Up to 24 months during the construction phase, with interest-only payments during this period.
- Fixed or variable interest rates: Borrowers can choose a fixed interest rate for the first 3, 5, or 10 years, after which the loan will convert to a variable rate based on the bank’s Main Base Rate plus a margin.
Additional Benefits:
- First-time homeowners may qualify for discounted introductory fixed rates and a credit card with no subscription fee for the first year.
Green Home Loan
The Green Home Loan is tailored for individuals looking to purchase, construct, or renovate energy-efficient properties. This loan is available for homes with a Grade A energy efficiency rating, and offers a lower interest rate than the standard housing loan. Hellenic Bank provides a 0.10% discount on the Home Loan’s interest rate for green homes, making it a cost-effective option for environmentally conscious borrowers.
Key Features:
- Finance amount: Up to 80% of the property’s value, with the remaining 20% paid upfront or financed through a mortgage on another property.
- Repayment term: Up to 30 years or until the borrower reaches 65 years of age, whichever comes first.
- Capital grace period: Up to 24 months during the construction phase, with interest-only payments during this time.
Special Conditions:
- Energy efficiency documentation is required, including an Energy Performance Certificate from the Ministry of Energy or proof of a relevant government grant.
- The loan is not available for the consolidation or transfer of existing facilities from other banks.
Real Estate Loan
The Real Estate Loan is designed for individuals looking to purchase or invest in properties for personal use, rental, or investment purposes. This loan covers a range of property types, including holiday homes, land for future development, or buy-to-let properties. It is available to both permanent and non-permanent residents of Cyprus, making it accessible to a wide audience.
Key Features:
- Loan amount: Based on the value of the collateral provided, with specific criteria for different property types.
- Repayment term: Up to 25 years for most properties and up to 15 years for land purchases. The loan must be repaid by the time the borrower turns 65.
- Interest rate: Variable rates based on the Bank’s Main Base Rate plus a margin, with an option to fix the interest rate for 3 or 5 years.
Special Conditions:
- Mortgage on the property is required, along with fire, earthquake, and flood insurance.
- The loan is subject to the bank’s internal lending criteria, and additional collateral may be requested.
Home Equipment Financing
Hellenic Bank’s Home Equipment Financing is a flexible financial leasing solution available to existing housing loan customers. This loan allows borrowers to finance up to €30,000 for the purchase of home equipment, such as furniture or appliances. The financing is structured through a financial leasing agreement, and ownership is transferred to the borrower once all agreed installments are completed.
Key Features:
- Loan amount: Up to €30,000 based on Hellenic Bank’s credit policy and criteria.
- Repayment term: Up to 7 years, with the condition that the loan must be repaid by the borrower’s 65th birthday.
- Interest rate: Fixed interest rate for the entire financing period, offering stability and predictability in monthly payments.
Additional Information:
- No arrangement or legal documentation fees are charged for this financing option.
- Collaterals may include home insurance and a residential property mortgage, depending on the financing structure.
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Housing Loan FAQ
Who is the Home Loan product addressed to?
The Home Loan product is offered to individuals who are permanent residents of Cyprus. It is suitable for purchasing, constructing, or renovating a primary residence, as well as transferring an existing loan from another bank.
What are the additional benefits for first-time homeowners?
First-time homeowners may qualify for a discounted fixed interest rate on housing loans for the first 3 or 5 years. They can also receive a credit card with no subscription fee for the first year. Proof of not owning residential property in Cyprus is required.
How can I apply for a loan?
You can apply via the Hellenic Bank Mobile App if you are an existing customer. Alternatively, you can submit your request online using the loan calculator, or schedule an in-person or online meeting with a bank representative.
What is the maximum loan amount?
The maximum loan amount is 80% of the property’s value. The remaining 20% can be paid upfront by the customer or financed by the bank through an additional mortgage on another property.
What is the maximum loan duration?
The maximum loan duration is 30 years, or until the borrower reaches the age of 65, whichever comes first.
What is the interest rate of the loan?
Interest rates are determined based on Hellenic Bank’s criteria and can be fixed for the first 3, 5, or 10 years. After the fixed rate period, the loan converts to a variable interest rate based on the Bank's Main Base Rate plus margin.
How is the Base Rate calculated?
Hellenic Bank’s base rates are calculated using the CBC Index, which is based on euro-denominated deposits. The average of the last three values forms the Reference Rate, and the Base Rate is adjusted quarterly.
What happens if I repay the loan early?
For loans with fixed interest rates, early repayment may incur charges. There are no charges for early repayment of variable-rate loans.
What are the required documents for the loan application?
The required documents include identity verification, proof of income, contact information, and professional activity details. Additional documents such as the title deed and planning permits may be required depending on the case.
What is the Annual Percentage Rate (APR)?
The APR represents the total cost of the loan to the customer expressed as an interest rate. It includes all loan-related expenses and is useful for comparing different loan schemes.
What happens if I miss a loan instalment?
If an instalment is missed, the overall cost of the loan may increase due to additional charges. If you are facing financial difficulties, it is advised to contact the bank to arrange a new repayment schedule.
