Starting Monday, May 4, the Ministry of Finance of Cyprus is reopening applications for the “Mortgage to Rent” program. This is one of the key support tools for people who can no longer meet mortgage payments on their primary residence.
Applications can be submitted until July 31, giving potential participants less than three months. Submissions are handled by KEDIPES — a state entity created after the banking crisis to manage non-performing loans. The program’s relaunch comes at a politically sensitive time. Authorities are discussing new eviction laws, and the final decision must be made by President Nikos Christodoulides by May 12.
How the “Mortgage to Rent” scheme works
The concept of the program is simple. The borrower transfers ownership of their property to KEDIPES, and the mortgage debt is fully written off. At the same time, the person does not lose their home — they continue living there, but now as a tenant.
The lease agreement lasts for 14 years. After 5 years, tenants have the option to buy the property back at a preferential price. For socially vulnerable groups, rent is partially or fully subsidized by the state. Applications can be submitted online or in person at offices in Nicosia, Limassol, Larnaca, Paphos, and Paralimni.
How many people have already used the program
According to the latest data, interest in the program remains high. A total of 3,340 applications have been submitted. Of these, 1,620 are still under review, 1,151 have been rejected, 98 applicants withdrew, and in 471 cases the property transfer has already been completed.
Finance Minister Makis Keravnos previously stated that the program would be extended without changes to its terms, as it remains in demand among the population. Experts note that the program has become especially relevant amid rising interest rates in the eurozone and increasing mortgage costs in recent years.
Why the program is back in focus
The application deadlines coincide with discussions of new laws aimed at protecting borrowers. At the end of April, the Parliament of Cyprus submitted a package of bills to the president concerning evictions and banking practices. Some initiatives may be signed, including measures to protect borrower rights and impose restrictions on creditors. However, certain bills may be referred to the Supreme Constitutional Court for review. Earlier, Christodoulides stated that he would make a decision “based on data and taking consequences into account,” without ruling out legal proceedings.
At the same time, the Supreme Court of Cyprus has already scheduled hearings on several controversial laws for mid-June. This means that final clarity on eviction rules is unlikely before summer. Notably, this period coincides with the active phase of the KEDIPES program — leaving borrowers roughly one and a half months before the application window closes.
Amid this uncertainty, many see the “Mortgage to Rent” program as a real opportunity to avoid losing their homes without waiting for court decisions.
What borrowers need to know
The program operates under rules approved back in 2024, and its terms have not changed since. It is aimed at low-income individuals, including social benefit recipients, pensioners, large families, and other vulnerable groups.
Amid rising living costs and increasing debt burdens in Cyprus, such measures are becoming an important part of social policy. Authorities are trying to strike a balance between the interests of banks and the protection of citizens.