What pre-approval tells you, and what it doesn't
Pre-approval is a bank's preliminary indication of how much they'd be willing to lend you, based on your income, existing financial commitments, and (once identified) the specific property. It's not a final, unconditional commitment — final approval still typically depends on a satisfactory RICS valuation of the actual property and a full underwriting review — but it's a strong signal of your borrowing capacity, and it materially strengthens an offer to a seller.
Loan-to-value: residents vs. non-residents
How much of a property's value a bank will lend against — the loan-to-value ratio, or LTV — differs depending on residency status. Cyprus residents typically see LTV ranges around 70–80%, meaning a 20–30% deposit is usually expected. Non-residents typically see a lower range, around 60–70% LTV, meaning a larger deposit — often 30–40% of the purchase price — is required.
These are general ranges rather than fixed rules; the actual LTV a specific applicant is offered depends on the lender's own criteria, the applicant's financial profile, and the property itself.
Why pre-approval has an expiry date
A pre-approval is typically valid for 3 to 6 months. Banks set an expiry because the assessment is based on a snapshot of your finances and prevailing lending conditions at the time — both of which can change. If a property search takes longer than the pre-approval window, it's usually straightforward to renew, but it needs to be actively managed rather than assumed still valid.
Getting pre-approved before you shop
Getting pre-approved before seriously viewing properties — rather than after finding one you like — clarifies your actual budget early and signals to sellers and agents that an offer is credible. It also surfaces any issues with your borrowing capacity while there's still time to address them, rather than discovering a problem at the final approval stage after a contract is already signed.