Cyprus Mortgage Rate Falls to 3.63% in September 2025
The average interest rate on new house-purchase loans in Cyprus fell to 3.63% in September 2025, from 3.91% in August, according to the Central Bank of Cyprus. New lending rose sharply over the same month.
By RealDeal team · 1 min read · Published 4 Nov 2025 · Updated 8 Oct 2026
The average interest rate on new loans for house purchase in Cyprus fell to 3.63% in September 2025, from 3.91% in August. The figures come from the Central Bank of Cyprus (CBC) statistics on interest rates applied by banks, published in the October 2025 edition of Monetary and Financial Statistics (Cyprus Mail).
New lending jumps
| August 2025 | September 2025 | |
|---|---|---|
| Rate on new house-purchase loans | 3.91% | 3.63% |
| Pure new loans | €245.5m | €447.9m |
| Total new loans | €420.4m | €770.5m |
Pure new loans count only new contracts; the total also includes renegotiated loans. Source: CBC.
Why the rate moves month to month
The CBC notes that the house-purchase loan portfolio mixes different loan types, such as loans for primary residences and for holiday homes, which carry different risks and rates. Because this mix changes from month to month, the weighted average rate can move even when banks do not change their pricing. A single month's figure therefore shows the direction of borrowing costs rather than the rate any individual buyer will be offered.