The Central Bank of Cyprus has published a report on the interest rates offered by local financial institutions to the island’s residents in August. According to the new data, average interest rates on deposits and loans showed mixed trends. While household deposit conditions remained stable, corporate deposit rates declined, and mortgage rates saw a noticeable increase.
Analysts attribute these changes to the European Central Bank’s monetary policy adjustments, moderate inflation reduction, and the stabilization of Cyprus’s banking sector after a period of strong growth in 2023–2024.
Rise in mortgage loan rates
In August 2025, the average interest rate on household mortgage loans rose to 4.01%, compared to 3.9% in July 2025. Among banks offering housing loans, Bank of Cyprus showed the highest rate at 4.64% (a decrease from 4.96% the previous month). The most favorable mortgage rate was recorded at Alpha Bank Cyprus — 2.27% (down from 3.29% in July).
Similar levels were observed at Housing Finance Corporation and Hellenic Bank, both averaging 3.67%, as well as Ancoria Bank — 3.63%. Thus, while mortgage lending in Cyprus is becoming more expensive, it remains competitive compared to the eurozone average.
Business loans: slight decrease
The average interest rate on new business loans of up to €1 million fell slightly — from 4.46% in July to 4.44% in August.
Astro Bank had the highest rate at 6.45% (up from 5.75%). It was followed by Banque SBA — 6.37%, Société Générale — 5.13%, Bank of Cyprus — 4.91%, and Alpha Bank — 4.23%.
The most favorable business loan conditions were offered by the former Hellenic Bank, at 3.72%.
Household deposits: stability
The average rate on household deposits with terms up to one year remained unchanged at 1.08%, comparable to July’s figures. For comparison, the eurozone average was 1.71%.
The best deposit conditions were offered by National Bank of Greece (Cyprus) — 1.47%, followed by Jordan Ahli Bank — 1.38%, and Eurobank — 1.28%.
The lowest offer came from Housing Finance Corporation, where the rate remained 0.75%. Among other banks, Ancoria Bank offered 1.25%, Cyprus Development Bank — 1.09%, and Alpha Bank — 1.07%.
Despite moderate figures, experts note a gradual upward trend in deposit rates.
Corporate deposits: noticeable rate decline
In the corporate deposit segment, a decline was recorded. The average rate on deposits of up to one year for non-financial companies stood at 1.15%, compared to 1.21% a month earlier. Meanwhile, the eurozone average remained stable at 1.88%.
The highest corporate deposit rate was offered by Alpha Bank — 1.41%, and the lowest by Housing Finance Corporation — 0.21%.
Rates around 1.3% were observed at the former Hellenic Bank and Ancoria Bank, slightly lower at Astro Bank — 1.11%, Eurobank — 1.08%, and Cyprus Development Bank and Bank of Cyprus — 1.01%.
Economic context and outlook
According to financial analysts, the August data indicates the beginning of a stabilization period in Cyprus’s credit and deposit markets. After significant fluctuations in 2024, banks are adapting to a new reality with more sustainable rates.
It is expected that in the fourth quarter of 2025, trends will remain moderate: mortgage rates may continue to rise slightly to 4.2–4.3%, while business deposit rates are likely to stabilize around 1.1–1.2%.
Thus, despite minor fluctuations, Cyprus’s banking system shows confidence and predictability, which is especially important for investors, companies, and private clients planning long-term financial decisions.