Cyprus Mortgage Duty to Decrease When Switching Lenders

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The duty payable on switching mortgages between lenders have been 'drastically cut' by the Cyprus Council of Ministers according to an announcement by Finance Minister, Charilaos Stavrakis.
 

This will be good news for mortgage borrowers who will now see a maximum duty of €200 euro if transferring lenders. The duty has come down from 1% of the value of the property to 0.25%.

 
The hope is to create a freer market for Cyprus citizens and thus stimulate the property market. Also, it would encourage competition between lenders rates and terms.
 
The reduction of rates are due to be implemented in the next couple of weeks. 

 
It will be interesting as to how this will be viewed by the financial institutions and to see how much they will charge in administration fees in order to put off customers switching mortgages.
 
 

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