Cyprus central bank reports shifts in mortgage and deposit interest rates

In September 2026, the average interest rate for new housing loans in Cyprus decreased to 3.24%, down from 3.31% in August. In contrast, interest rates for new business loans and deposits for both households and businesses saw an increase. These figures, released by the Central Bank of Cyprus, highlight a period of market transformation marked by the recent consolidation of major financial institutions, including the merger of Hellenic Bank with Eurobank Cyprus and the integration of AstroBank into Alpha Bank Cyprus.

Among individual lenders, the Housing Finance Corporation reported the highest average mortgage rate at 3.55%, followed by Bank of Cyprus at 3.37%, Ancoria at 3.27%, Eurobank at 3.21%, and Alpha Bank Cyprus at 2.80%. Analysts note that despite a reduction in the number of banks, the market is seeing an intensified competitive struggle for market share. Alpha Bank Cyprus, in particular, has adopted an aggressive pricing policy, offering the lowest rates across several loan categories to attract healthy borrowers as the sector consolidates.