October 2025 marked a turning point for Cyprus’s financial market. After a brief period of stabilization in September, deposit rates resumed their decline, while mortgage rates returned to moderate growth. According to the Central Bank of Cyprus, each financial institution adopted its own strategy to adapt to funding costs and shifting demand for borrowing.
As of October, mortgage rates are calculated using a new methodology: all loans are now included in the calculation, regardless of the initial fixed-rate period. This approach provides a more accurate picture of real market trends.
Deposits: Decline After September Stabilization
The average rate on one-year fixed-term deposits fell to 1.07%, down from 1.10% in September. While some banks followed the general downward trend, others moved in the opposite direction in an effort to strengthen their competitive position.
- National Bank of Greece reduced its rate to 1.41% from 1.44%
- Housing Finance Organization (HFO/OHS) increased its rate to 0.82% from 0.76%
- Ancoria Bank made one of the most notable adjustments, raising its rate to 1.43% from 1.26%, making it one of the most attractive offers on the market
- Alpha Bank Cyprus increased its rate to 1.12% from 1.04%
- Société Générale lowered its deposit rate to 0.80% from 0.85%
- Bank of Cyprus raised its rate to 0.85% from 0.72%
- Cyprus Development Bank reduced its rate to 1.00% from 1.12%
- Hellenic Bank lowered its rate to 1.11% from 1.19%
Eurobank and AstroBank did not publish updated figures for the second consecutive month.
Mortgage Loans: The Market Returns to Growth
Unlike deposits, mortgage rates increased in October, with the average rising to 3.08% from 3.03% in September. This reflects banks’ reassessment of pricing policies in response to updated market conditions.
- Hellenic Bank increased its rate to 2.95% from 2.90%
- Bank of Cyprus raised its rate to 3.23% from 3.16%
- Alpha Bank increased its rate to 2.74% from 2.72%
- HFO/OHS raised its rate to 3.37% from 3.35%
- Ancoria Bank was the exception, lowering its rate to 3.00% from 3.24%
Eurobank, AstroBank, Cyprus Development Bank, National Bank of Greece, and Société Générale did not release October data.
What This Means for the Market and Consumers
October’s results point to a new phase of rebalancing: deposit rates are once again under pressure and trending downward, while mortgage rates are gradually increasing. This may lead households to reconsider financial decisions—from where to place savings to whether to take out new mortgages.
Economists note that amid stable housing demand and continued growth in property prices in Cyprus, rising rates may encourage borrowers to act more quickly to lock in favorable terms. At the same time, declining deposit yields are pushing investors to seek alternative investment avenues, including real estate and hybrid financial instruments.