Mortgage lending rates in Cyprus declined in March 2026, while borrowing costs for businesses continued to remain above the eurozone average, according to data released by the Central Bank of Cyprus. At the same time, deposit rates for households and businesses remained lower than corresponding levels across the euro area.
For household time deposits of up to one year, the weighted average interest rate in Cyprus stood at around 1.18%, compared with 1.82% in the eurozone. National Bank of Greece (Cyprus) offered one of the highest deposit rates at approximately 1.57%, while Bank of Cyprus provided lower returns near 0.87%. Eurobank Cyprus and Alpha Bank Cyprus offered rates of 1.17% and 1.39%, respectively.
For time deposits of up to one year from non-financial corporations, the weighted average rate across all Cypriot credit institutions reached 1.39% in March, compared with 1.94% in the eurozone. Significant differences were recorded among banks, with Ancoria Bank offering 1.51%, Eurobank Limited 1.42%, Alpha Bank Cyprus 1.24%, Bank of Cyprus 1.40%, and National Bank of Greece (Cyprus) 1.55%. The Housing Finance Corporation recorded one of the lowest rates at 0.66%.
In new mortgage loans, the weighted average rate across all Cypriot credit institutions fell to 3.09% in March, compared with 3.40% in the eurozone, marking a decline from previous months. Among individual banks, Eurobank Limited quoted 3.06%, Bank of Cyprus 3.20%, and the Housing Finance Corporation 3.37%, while Alpha Bank Cyprus, Ancoria Bank and National Bank of Greece (Cyprus) offered rates ranging from 2.72% to 2.78%.
For renegotiated mortgage loans, the Cyprus-wide average rose to 3.34%, above the eurozone figure of 3.20%. Combining new loans and renegotiations, the overall weighted average mortgage rate in Cyprus stood at 3.15%, remaining below the eurozone average of 3.35%.
For variable-rate mortgage loans with an initial fixation period of up to one year, the weighted average rate for new contracts reached 3.78% in March. By bank, Alpha Bank Cyprus offered 3.47%, Ancoria Bank 2.53%, National Bank of Greece (Cyprus) 2.72%, Eurobank 3.58%, the Housing Finance Corporation 3.37%, and Bank of Cyprus 4.53%.
For renegotiated loans in the same category, Eurobank quoted 3.80% and Bank of Cyprus 4.32%, bringing the Cyprus-wide average to 4.01%.
Combining new contracts and renegotiations, the weighted average rate for this segment in Cyprus reached 3.86%, remaining above the eurozone average of 3.50%.
For corporate loans of up to €1 million with variable rates and an initial fixation period of up to one year, the weighted average rate across all Cypriot credit institutions stood at 4.40%, compared with 3.74% in the eurozone. Ancoria Bank recorded the highest rate for new loans at 6.35%, followed by Societe Generale Bank Cyprus at 6.17%. Bank of Cyprus quoted 4.91%, Alpha Bank Cyprus 4.03%, Cyprus Development Bank 4.69%, National Bank of Greece (Cyprus) 3.94%, and Eurobank Limited 3.83%.
Interest rates for loans above €1 million to non-financial corporations in Cyprus also remained above the eurozone average. The overall weighted average rate in Cyprus stood at 4.10%, compared with 3.36% in the eurozone.
In new business, rates ranged from 3.65% at Bank of Cyprus Public Company Ltd to 4.30% at National Bank of Greece (Cyprus) Ltd, while Eurobank Limited offered 3.88%, Alpha Bank Cyprus Ltd 4.11%, and Ancoria Bank Ltd 4.10%. In renegotiated loans, the Cyprus-wide average reached 4.58%, with Bank of Cyprus Public Company Ltd at 4.67%, Alpha Bank Cyprus Ltd at 4.62%, and Eurobank Limited at 4.16%.
(Source: CNA)
