According to the Central Bank of Cyprus, the average interest rate on new mortgage loans in Cyprus stood at 3.04% in February, which is lower than the eurozone banking average of 3.41%. This makes the island’s real estate market more attractive for buyers, especially against the backdrop of gradually declining rates in Europe in 2026.
Among banks, the most favorable conditions for new housing loans are offered by National Bank of Greece with a rate of 2.01%, while the highest level is recorded at Societe Generale — 5.14%. One of the more expensive options remains Housing Finance Corporation with a rate of 3.41%.
Rates on existing loans remain high
For existing mortgage loans, the average rate in Cyprus reaches 3.50%, which is significantly higher than the eurozone level of 2.46%. The variation between banks is less pronounced: the highest rate at Bank of Cyprus is 3.73%, while the lowest at Housing Finance Corporation is 2.96%.
In the business lending segment, rates also remain relatively high. For new loans up to €1 million, the average rate reaches 4.06%. The lowest rate is offered by Eurobank at 3.76%, while the highest is recorded at Banque SBA — 6.34%. For loans exceeding €1 million, the average rate stands at 3.85%, with the most favorable conditions offered by Bank of Cyprus at 2.89% and the highest by Cyprus Development Company at 4.5%.
For existing business loans with a maturity of over 5 years, the average rate remains at 4.06%, while in the eurozone it is significantly lower at 3.08%. The highest rates are recorded at Societe Generale — 4.91%, and the lowest at Eurobank — 3.79%.
Deposits in Cyprus lag behind the eurozone
Despite more favorable mortgage conditions, the situation with deposits remains less attractive. The average rate on new deposits with a term of up to 1 year for households is 1.19%, while in the eurozone it reaches 1.78%. The highest return is offered by National Bank of Greece — 1.61%, and the lowest by Bank of Cyprus — 0.81%.
For existing deposits with a term of up to 2 years, the gap is even more noticeable: in Cyprus the average rate is only 0.76%, while in the eurozone it is 1.73%. The lowest level is at Bank of Cyprus — 0.48%, and the highest at Jordan Kuwait Bank — 1.65%.
A similar situation is observed for corporate deposits. For new deposits with a term of up to 1 year, the rate in Cyprus is 1.19%, while in the eurozone it is 1.9%. The lowest rates are offered by Housing Finance Corporation — 0.95%, and the highest by National Bank of Greece — 1.61%.
For existing corporate deposits with a term of up to 2 years, the average rate is 1.05% compared to 2.01% in the eurozone. The lowest rate is at Societe Generale — 0.82%, and the highest at National Bank of Greece — 1.45%.
Current market trends
In 2026, Cyprus’s financial market remains influenced by the policy of the European Central Bank, which is gradually easing monetary conditions after a period of high rates. This is already reflected in declining mortgage interest rates, although banks are still slow to increase deposit returns.
Experts note that this gap between lending and deposit rates persists due to high liquidity in the banking system and moderate demand for loans. In the coming months, further rate adjustments are possible, especially if inflation in the eurozone continues to slow.