Way of Payment
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Reservation Fee |
€5000 |
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30% Deposit |
Signing of Contract within 4 weeks |
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20%Payable |
Completion of Structure |
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20% Payable |
Completion of Brickwork |
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20% Payable |
Completion of Flooring |
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10% Payable |
Delivery of Property |
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ALPHA BANK Housing Schemes for Non-Residents |
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Alpha Home |
Alpha FlexiHome |
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Loan Purpose |
Building of a house
Purchase of a house or apartment (completed or under construction)
Completion, extension, refurbishment of a house or apartment
Re-financing of existing mortgage loan |
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Loan Amount Coverage |
80% of purchase price / building cost for 1st residence provided Central Bank Conditions are met
60% of purchase price / building cost otherwise |
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Duration |
For loans in and EUR: Up to 35 years
For loans in all other currencies: Up to 15 years
Minimum duration of 15 years for Alpha FlexiHome
At loan maturity customer’s age must not exceed 70 years |
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Interest Rate |
Floating Interest Rate Margin: 1,75%-2,25% for all currencies
Fixed Interest Rate: 3 or 5-yr periods |
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Security |
Mortgage on the property equal to 120% of the loan amount
Fire and similar risks insurance
Optional Life Insurance |
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Arrangement Fees |
0,25% - 1,00% of loan amount |
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Repayment |
Equal monthly instalments |
First 5 years – Monthly interest payments only
Subsequent 5 years – Normal monthly instalments
Remaining years – Monthly instalments increased to cover repayment of capital postponed from first 5 years |
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Grace Period |
Repayment commences 1 month after the completion of the property with a maximum grace period of 2 years since the first granting of a loan amount, whichever occurs first
During the grace period interest will be capitalised and will be covered by loan instalments |
GENERAL INFORMATION ON HOUSING LOANS OFFERED BY ALPHA BANK
Alpha Bank Ltd has adopted the European Code of Conduct for housing credit (The Code of Housing Loans), aiming to offer comprehensive information to its customers and consumer protection in the area of home lending. The Code is available at all Alpha Bank branches.
The following information is general and it applies to all housing schemes offered by Alpha Bank Ltd, except where otherwise indicated.
1. Forms of security:
o First Legal Mortgage on the property to be financed
o Bank Guarantee from other Bank
o Assignment of Sales Contract
Plus:
o Fire, Earthquake and Other Similar Dangers Insurance Policy (fire insurance policy is offered free of charge by Alpha Insurance for the first year on the amount of the loan)
o Assignment of Life Insurance Policy (optional).
2. Interest rate types:
o For loans in EUR: floating interest rate based on the Bank’s Base Lending Rate (EUROBPR) plus margin
o For loans in foreign currency: floating interest rate based on the 1,3 or 6-month LIBOR / EURIBOR plus margin
o For loans in foreign currency: fixed interest rate set by the Bank’s Treasury Division according to the renewal period (3 or 5 years).
3. Total cost for the consumer:
The total cost is adjusted according to the current Base Lending Rate, the effective margin and the specific terms and conditions of each loan.
4. List of relevant government charges:
o Mortgage stamp duties – 0,15% of mortgage amount (0,20% for amounts over CYP 100.000 EURO equivalent)
o Documents stamp duties – 0,15% of mortgage loan amount (0,20% for amounts over CYP 100.000 EURO equivalent)
o Land Registry Fees– 1,00% of mortgage amount
5. Early repayment:
Early repayment can be effected, provided prior notice of three working days is given to the Bank, with the following additional charges:
o For loans that fall under the Consumer Credit Act (up to CYP50.000 or the equivalent amount in foreign currency) the charge will be calculated based on the provisions of the Act.
o For other loans, the charge, if any, will be calculated based on the Bank’s cost plus any charges resulting from the early repayment of the loan.
6. Property valuation:
A valuation of the immovable property is effected by an approved valuer of the Bank. The valuation expenses will burden the customer.
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