Mortgage rates are rising in Cyprus

Cyprus has recorded an increase in mortgage interest rates, adding financial pressure on borrowers. According to the latest data from the Central Bank of Cyprus, the average housing loan rate in August 2025 reached 3.91%, compared to 3.68% in June. Thus, the growth amounted to almost 0.25 percentage points over two months.

The main reasons for the rise include higher borrowing costs on the interbank market and high inflation, forcing banks to adjust lending conditions. Financial institutions on the island now offer mortgage products with rates ranging from 3.45% to 5.5%, depending on the amount, loan term, and borrower profile.

Experts note that even a slight increase in rates can significantly impact mortgage payments, especially for middle-income families. Many borrowers are already struggling to service existing loans, and new mortgage applications are being reviewed more strictly.

Economists estimate that the upward trend in rates will continue until the end of the year unless the European Central Bank changes its current monetary policy. The Cypriot authorities are considering introducing limited support measures for vulnerable groups to mitigate the effects of higher rates.