Cyprus Property News magazine for overseas buyers & real estate investors

Thursday 9th July 2020
Home Investor Centre Cyprus interest rates fall

Cyprus interest rates fall

Cyprus interest rates fallINTEREST rates for house purchase and for consumer credit continued their downward trend, falling to a new lowest point since November 2007, when data is available.

The interest rate for consumer loans dropped in July to 4.01% from 4.47% in the previous month.

According to data released Thursday by the Statistical Service of Cyprus, the main developments in interest rates on new loan and deposit contracts, including existing contracts which were renegotiated, are summarised as follows:

Deposit interest rates

The interest rate on deposits from households with an agreed maturity of up to one year recorded a marginal increase to 1.51%, compared with 1.49% in the previous month.

The corresponding interest rate on deposits from non-financial corporations decreased to 1.39%, compared with 1.45% in the previous month.

Lending interest rates

The interest rate on consumer credit registered a decrease to 4.01%, compared with 4.47% in the previous month.

The interest rate on loans for house purchase also fell to 2.94%, compared with 2.99% in the previous month.

The interest rate on loans to non-financial corporations for amounts up to €1 million remained unchanged at 4.23%, compared with the previous month. In contrast, the interest rate on loans to non-financial corporations for amounts over €1 million recorded a decline to 3.71%, compared with 3.76% in the previous month.


  1. I imagine the majority are foreign. Understanding the reason would be useful. A loan is a loan after all. It is unethical to pass on interest rate cuts whilst refusing to lower the rate for one particular type. Each product has it’s starting rate and should be adjusting across the range. BTW, my interest rate was agreed as 2% plus libor. The bank broke this agreement after the financial crash. It is now 5.5% plus libor and has been for some time. If interest rates are now dropping I should benefit.

    Ed: Considering that foreigners only account for around a quarter of property sales there are many more Cypriots having issues with their loans. If your loan agreement with the bank states that you have a fixed interest rate of 2% + LIBOR, the you should take this further.

  2. I haven’t seen any reduction in the interest rate on my BoC “housing loan”. Still sits at 5.5% or thereabouts. When I’ve questioned this I was advised reductions were not applied to loans for holiday houses.

    Feels like blatant discrimination by the banking sector against foreign buyers.

    Ed: You need to remember that it isn’t only foreigners who buy holiday homes. Many more are bought by Cypriots – they also face this problem.

Comments are closed.



EUR - Euro Member Countries


Corrupt lawyers continue to plunder estates

Corrupt lawyersin Cyprus continue to plunder the estates of their deceased clients by calculating their fees for administering estates on the Cyprus Bar Association's 'Minimum Fee Regulations', which were abolished in 2018

Cyprus house price index up 2.5 per cent

The Cyprus house price index rose by an average of 2.5 per cent in the first quarter of 2020 compared to the previous quarter according to official figures from the Cyprus Statistical Service (CYSTAT)

MPs commit to expedite citizenship bills

MPs have committed to expediting the bills and regulations aimed at improving the transparency of the citizenship-by-investment programme, so that the items can be voted on before the House breaks for the summer recess.

Decision soon on Pissouri homes devastated by landslide

The government said Monday it will soon have in hand the recommendations of experts concerning the landslide in the area of Pissouri, which has seriously damaged dozens of properties throughout the years.