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Cyprus

New scheme for those struggling to pay housing loans

The House Finance Corporation announced a scheme on Wednesday aimed at helping households which are finding it difficult to repay their loan.

The scheme, dubbed Heraclis, is addressed to borrowers with housing loans who meet certain criteria: the house must be their main residence for the past three years; the loan was granted by the end of March 2013, and the loan has a balance of over €50,000 and the payments were past due for over a year in December 2020.

The corporation said the scheme provides for writing off part of the interest rates charged from the day it was granted until December 31, 2020.

The amount would depend on the balance at the end of last year and whether the borrowers choose to pay off the loan or restructure it.

For example, an amount over €200,000 would see 40 per cent of the interest written off if fully repaid or 25 per cent if restructured.

For loans between €150,000 and €200,000, the waiver would concern 35 per cent if repaid and 20 per cent if restructured.

Those between €100,000 and €200,000 will be given a 30 per cent discount on their interest rates if the repay the loan in full or 15 per cent if they choose to restructure.

The discount for loans between €50,000 and €100,000 would be 20 per cent or 5 per cent respectively.

The corporation said the scheme does not apply to state-funded housing loans and those included in other schemes.

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