The "Mortgage for Rent" program, which was created to help people in need in Cyprus, is running very late. The main problem is that it takes a long time to evaluate real estate properties and approve applications.
Many applications are still pending.
According to KEDIPES, the organization that is putting the program in place, as of mid-July 2025, more than 1,000 applications are still waiting to be processed. The reason is that key documents are missing, including title deeds and building permits. To get these documents, applicants, KEDIPES, and municipalities need to work together. To speed up the process, we are working with local authorities. However, it is still difficult to move forward because of bureaucratic procedures.
According to the latest data from KEDIPES:
- 507 applications have already been approved, and the relevant notifications have been sent to the applicants.
- 147 housing units have already been transferred to KEDIPES.
- 470 applications are in the final stage. Legal issues are being checked and agreed upon.
What is the most important part of the program?
The state program "Mortgage for Rent" was first launched in 2023. The program was so popular with the people of the island that the government decided to continue it in the fall of 2024. The plan covers loans that are late, and the homes that are used to guarantee the loans are worth a maximum of €350,000. The people who will benefit are low-income groups and pensioners, even if they haven't applied to join the ESTIA and Oikia programs.
People who missed mortgage payments but were turned down for the ESTIA and Oikia programs because they were considered too risky (because they make too little money) can also join the program.
A different company, KEDIPES EED Ltd., has been created to manage the new program and keeps separate accounting records, including a list of fixed assets. The plan includes steps to make sure that the property will be owned by KEDIPES. Call centers and service points have been set up in five cities in Cyprus. These centers are staffed by qualified personnel who can answer any questions from the public and those interested in participating in the program.
KEDIPES' main role in the "Mortgage to Rent" program is to buy up bad debt and other high-risk assets from Cypriot credit and financial institutions.
The idea is that KEDIPES buys mortgage-backed properties from debtors. The people who need help paying their loans can then rent their property from the "bad bank" for 14 years. During this time, they are charged rent at 65% of the average market rate. At the end of this period, they can buy back the asset if they pay off their debt. If you have debt on your property, the current price is the same as the price when KEDIPES bought the property, minus the rent paid over 14 years. If the person cannot buy back the property, for example, because they don't have enough money or because they have died, this right is given to their immediate family members on the same terms. If the terms of the agreement are not met, KEDIPES has the right to sell the property after 14 years.
How do I apply for the program?
If you want to participate in the state program "Mortgage for Rent," you must submit an application on paper. You can submit your application at the offices of KEDIPES. The addresses are listed below.
- 7 Grigori Afxentiou Street, Nicosia, 1096.
- 97 Gladstonos Street, Oasis Complex, Block E, 3rd floor, Limassol, 3032.
- 5 Georgios Christodoulides Street, Larnaca, 6041;
- 7 Kiniras and Koriou Intersection, 4th floor, Paphos, 8011;
- 4 Griva Digeni Street, Paralimni, 5281.
To learn more about the project, please call 22 743400.
