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Lending rates are pretty much in the range of 5.5%, varying a few percentage points either way. Some Banks give an introductory offer of 3.75% for the first 2 years.

Duration of Loan
Most Banks lend to Retiring Age, i.e. age 61. However some have extended this to age 65. The longer the duration the lower the loan repayments.

Loan Amount
As a rule of thumb the Banks lend 4 times the gross declared income of the borrower. In the case of spouses or partners who both work, the Banks can take 3.5 time the gross declared income. FSS or P3 and pay-chits would be the required documentary evidence. The Banks would normally include all allowances and over-time, as long as it can be proved that they are regular over a period of time, normally 3 years.

Additional Amounts
The Banks will consider lending amounts in excess of the above-mentioned amount, but will normally request additional security.

Security
The Bank will take the property to be bought, as security, via a General Hypotec and Special Privilage. Life Policies and House Insurance Polices to cover the loan amount will have to be pledged.

Life Insurance
The Banks will require a life policy to cover the loan amount and will take a pledge on the policy thereto. In some cases a medical examination may be required before the Life Policy is issued. Shop around for quotes. You will be surprised at how much they vary.

Home Insurance
A Buildings Policy will be required for, at lease, the replacement value of the building and its finishes. A contents Policy would be advisable too. Shop around for quotes, in this case too. You will still be surprised at how much they vary.

Loan Repayment
The Banks would normally not allow you to repay more than a quarter of your gross salary as loan repayments. This rule may be a bit elastic, depending on the Bank.

Architect’s Valuation & MEPA Plans
All Banks will require an architect’s valuation and a copy of the plans of the property, preferably with MEPA (Planning Authority) stamps on them. As of recent the Banks are also requesting a MEPA Compliance Certificate from your architect. So it is doubley important to get an Architect on-site to make sure that the existing building is actually compliant with the approved MEPA plans. You will be surprised how many are not. Be careful of a Property where owner is reluctant to produce plans bearing MEPA stamps on every page.

Sanction Letter
Subsequent to a meeting with the Bank and discussion of the above , the lending parameters will be set and a Sanction Letter issued. A copy of the Convenium (Preliminary Agreement of Sale).