Cyprus sees interest rate for housing loans hit 4.91 per cent

The lending interest rate for home purchases hit 4.91 per cent in October 2023, according to the Central Bank of Cyprus’ (CBC) latest Monetary and Financial Statistics report.

At the same time, the interest rate for household time deposits of up to one year decreased to 1.58 per cent in October 2023, down from 1.59 per cent in the previous month.

However, the rate for non-financial corporation deposits rose to 2.26 per cent from 1.67 per cent in the prior month.

On the lending front, the interest rate for home purchase loans saw a substantial increase to 4.91 per cent in October, up from 4.42 per cent the previous month.

Additionally, consumer loan interest rates surged to 6.27 per cent from 6.05 per cent in the prior month.

Loans to non-financial corporations up to €1 million experienced a rise to 5.77 per cent, up from 5.72 per cent previously.

Moreover, loans exceeding €1 million reached 6.26 per cent, compared to 5.59 per cent the previous month.

Despite these fluctuations, the total value of new loans surged to €693.4 million in October 2023, up from €578 million in the prior month.

Specifically, new home purchase loans increased to €218.1 million, compared to €172.6 million in the previous month, while new consumer loans rose to €24.6 million, up from €24.5 million.

Loans to non-financial corporations for amounts up to €1 million also witnessed an increase to €92.4 million, compared to €83.5 million the prior month.

Finally, loans exceeding €1 million surged to €348.5 million, up from €278.7 million in September.