The Central Bank of Cyprus has published fresh statistics on interest rates offered by local financial institutions to their clients in January 2026. According to the updated data, the maximum rate on housing loans for households reached 3.41%. A month earlier, this figure stood at 3.25%. The minimum rate also increased — to 2.5% compared to 2.39% in the previous month. These data reflect the situation for new lending agreements for eurozone residents in euros regardless of the initial rate fixation period.
Mortgage rates in Cyprus banks
According to the Central Bank, in January 2026 the highest interest rate on mortgage loans was recorded at Housing Finance Corporation and amounted to 3.41%. Slightly lower rates were offered by Bank of Cyprus — 3.23% and Ancoria Bank — 3.1%. The lowest rate among major banks was offered by Alpha Bank Cyprus, where it stood at 2.86%.
The average mortgage rate across all banks in Cyprus in January reached 3.04%. For comparison, the average rate across eurozone countries was higher at 3.39%. This means that overall mortgage lending in Cyprus remains slightly cheaper than the eurozone average, which continues to support interest in purchasing real estate on the island.
Market experts note that the dynamics of rates are largely linked to the policy of the European Central Bank and general inflationary processes in Europe. After a period of active rate increases in 2023–2024, the market is gradually stabilizing, although banks are still cautiously adjusting lending conditions.
Business loans
Changes also affected corporate lending. The highest interest rate on loans exceeding 1 million euros for non-financial companies in January 2026 was offered by Bank of Cyprus — 4.72%. Alpha Bank Cyprus ranked second with a rate of 3.82%.
The most favorable conditions for businesses among the mentioned banks were offered by Ancoria Bank, where the rate on similar loans amounted to 3.42%. Such loans are typically used by companies for investments, business development, construction, and expansion of commercial activities.
Interest rates on deposits
As for bank deposits, the most attractive rate on deposits with a term of up to one year for individuals in January 2026 was offered by National Bank of Greece (Cyprus) — 1.67%. It is followed by Ancoria Bank with a rate of 1.46% and Alpha Bank Cyprus — 1.42%. The lowest return on such deposits was offered by Housing Finance Corporation, where the rate amounted to 0.85%.
For corporate clients, the situation is similar. The highest rate on deposits with a term of up to one year for companies was offered by National Bank of Greece (Cyprus) — 1.71%. Next are Bank of Cyprus with a rate of 1.45% and Alpha Bank Cyprus — 1.43%. The minimum rate for businesses was also offered by Housing Finance Corporation, where it stood at 0.67%.
What is happening with banking rates in 2026
Financial analysts note that the banking sector of Cyprus continues to adapt to the new economic conditions of the eurozone. Despite a moderate increase in mortgage rates, demand for real estate remains stable thanks to international investors and company relocation programs to the island.
Interest in deposits is also growing, as banks are gradually increasing returns after several years of low rates. At the same time, deposit rates still remain significantly lower than lending rates, allowing banks to maintain a stable margin.
According to economists’ forecasts, during 2026 rates may fluctuate depending on decisions by the European Central Bank, inflation in the eurozone, and the pace of economic growth in Cyprus. For property buyers and investors, this means the need to carefully compare bank offers and monitor changes in the financial market.