Mortgage rates up in October, as deposit rates drop further

08:47 - 05 December 2023

Economy

Mortgage interest rates rose to 4.91% in October 2023 from 4.42% the previous month, as household fixed term deposits with one-year maturity dropped further to 1.58% from 1.59%, according to the Central Bank of Cyprus.

In its November 2023 edition of Monetary and Financial Statistics, the CBC said that the interest rate on deposits from households with an agreed maturity of up to one year recorded a decrease to 1.58%, compared with 1.59% in the previous month. The corresponding interest rate on deposits from non-financial corporations registered an increase to 2.26%, compared with 1.67% in the previous month

On the other end of the spectrum, the interest rate on loans for house purchase increased to 4.91%, compared with 4.42% the previous month. The interest rate on consumer credit increased to 6.27%, compared with 6.05% in the previous month.

The interest rate on loans to non-financial corporations for amounts up to €1m increased to 5.77% (5.72% in September). The interest rate on loans to non-financial corporations for amounts over €1m registered increased from 5.59% to 6.26%.

New loans increase nonetheless

Despite the increase in lending rates, total new loans increased from €578m in September to €693.4m in October 2023. New loans for consumption increased to €24.6m from €24.5m and new loans for house purchase recorded an increase to €218.1m, compared with €172.6m the previous month.

New loans to non-financial corporations for amounts up to €1m rose to €92.4m from €83.5m in September, with new loans to non-financial corporations for amounts over €1m registering an increase from €278.7m to €348.5m.

(Source: Central Bank of Cyprus)

Mortgage rates up in October, as deposit rates drop further

News Feed

Read More