GLOPRAGlobal Property Radar

Cyprus: the new housing loan rate rose to 4.16% in August from 3.78%

The average rate on a new Cyprus housing loan rose to 4.16% in August from 3.78% in July, putting 38 basis points on the cost of financing a purchase.

The facts

  • The Central Bank of Cyprus put the weighted average rate on new household loans for house purchase at 4.16% in August 2026, against 3.78% in July.
  • That is a step of 38 basis points inside a single month, on a figure that covers several different housing loan products.
  • Consumer credit rose to 7.12% from 6.94%.
  • Corporate borrowing moved the other way: loans up to one million euro eased to 4.45% from 4.47%, and loans above one million euro to 3.67% from 4.29%.
  • Household deposits with an agreed maturity of up to one year paid 1.35%, up from 1.27%.

What it means for your money

  • Financing a purchase costs 38 basis points more than a month earlier. On the same loan the monthly payment is higher.
  • Rental income is effectively untaxed at typical rent levels: after the 20% deemed expense deduction the income stays inside the 22,000 euro zero band, according to Glopra's Cyprus data.
  • Glopra's Cyprus data, snapshot of 5 October 2026, puts asking prices in the capital district at 2,790 USD per square metre against asking rents of 12.06 USD per square metre a month, a gross yield of 5.18%.
  • A borrower who already holds a Cyprus housing loan sees nothing of their own position here. The series covers new business only, so it does not show what is happening to loans already on the books.

What to watch

  • The next monthly interest-rate release, covering September, will show whether the 38-basis-point step was a single month or the start of a repricing.
  • The 4.16% is a weighted average across different housing loan products, so an individual offer can sit well above or below it.

Sources: Central Bank of Cyprus, Statistics on Interest Rates applied by Monetary Financial Institutions, published 5 October 2026 https://www.centralbank.cy/en/announcements/monetary-financial-institutions-05-10-2026; Cyprus Mail, 5 October 2026 https://cyprus-mail.com/2026/10/05/low-deposit-yields-and-rising-mortgage-costs-squeeze-cyprus-households; Cyprus Times, 5 October 2026 https://cyprustimes.com/cyprus-daily/deposits-consumer-loans-and-mortgages-rates-up-in-august-2026/

Market data: Cyprus