Cyprus Mortgage Rates Fall to 3.88% in September 2026
The average rate on new floating-rate housing loans in Cyprus fell to 3.88% in September 2026, from 4.16% in August, while new housing lending rose to €135.1m.
By RealDeal team · 2 min read · Published 12 Nov 2026
Cyprus mortgage rates eased in September 2026. According to the Central Bank of Cyprus (data released on 3 November 2026), the weighted average interest rate on new house purchase loans was 3.88%, down from 4.16% in August. The figure covers loans with a floating rate or an initial rate fixation of up to one year.
The figures
| July 2026 | August 2026 | September 2026 | |
|---|---|---|---|
| House purchase loan rate | 3.78% | 4.16% | 3.88% |
| Pure new housing loans | €149.5m | €114.4m | €135.1m |
Fewer variable-rate loans
The share of new housing loans with a variable rate fell from almost 100% in early 2022 to 9.8% in September 2026 (12.1% in July). Most new borrowers now fix their rate for one to five years, so changes in ECB rates reach their monthly payments more slowly.
A new 1% buffer for banks
On 2 November 2026 the CBC announced a 1% systemic risk buffer for all banks in Cyprus, applicable from 31 December 2026. Among its reasons, the CBC pointed to the high concentration of bank lending secured by real estate. The buffer will be reviewed at least every two years. It is a capital requirement for banks, not a new rule for borrowers.
On the same CBC measure, the average rate on new housing loans was 3.63% in September 2025.