The government of Cyprus has decided to extend the application deadline for the state programme 'Mortgage to Rent' until October 31, 2024, in response to high demand from the Cypriot population. The announcement was made by the Finance Ministry on Friday, October 4.
Interested individuals can submit their applications electronically on the website kedipes.com.cy or in person at the KEDIPES offices located at the following addresses:
7 Grigori Afxentiou Street, Nicosia, 1096;
97 Gladstonos Street, Oasis Complex, Block E, 3rd Floor, Limassol, 3032;
5 Giorgos Christodoulidis Street, Larnaca, 6041;
Kinira and Koriou Junction, 7, 4th floor, Paphos, 8011;
Griva Digeni Street 4, Paralimni, 5281.
For more information, beneficiaries can contact the reference number: 22 743400.
As a refresher, the 'Mortgage to Rent' initiative is aimed at individuals with overdue loans on their primary residence worth up to 350,000 euros. This includes low-income groups, pensioners, and individuals who have been rejected from other housing schemes due to their financial circumstances.
Under this programme, a dedicated entity, KEDIPES EED Ltd, has been established to manage the scheme and handle its financial operations. By purchasing non-performing loans from financial institutions, KEDIPES aims to relieve the Cypriot banking sector of toxic debt amounting to €10 billion.
The core concept behind 'Mortgage to Rent' involves debtors selling their mortgages to KEDIPES and renting their properties back from the entity for a period of 14 years. Rent is set at 65% of the market average, and at the end of the term, debtors have the option to repurchase their property by settling any outstanding arrears.
If debtors are unable to repurchase the property, their next of kin have the opportunity to do so under the same terms. Alternatively, KEDIPES reserves the right to sell the property after the 14-year period if the conditions of the scheme are not met.