Eurobank Cyprus reduces mortgage rates by 0.5% for consistent borrowers

Eurobank Cyprus announce that it is reducing its mortgage interest rates by 0.5% for borrowers who are consistent with their loan instalments.

It said it made the decision “to support and reward” its customers, particularly private borrowers who are up to date with their loan repayments.

The reduction in interest rates on mortgage loans with a variable interest rate linked directly or indirectly, through the bank’s key interest rates, with EURIBOR, will be borne exclusively by the bank.

The new rate will be effective from 1 June 2023 until 31 May 2024. “The bank will reduce the final interest rate of mortgage loans that will be included in the programme by 50 basis points (0.50%),” it said.

The reduction will be calculated at the end of each month, and at the end of the 12-month plan period, the total amount of the reduction will be refunded to customers by deposit to their checking account.

The programme is open to all natural persons, borrowers of mortgage loans for the purchase or construction of a first home, which is priced at a floating interest rate linked either directly or indirectly, through the bank’s base rates, to EURIBOR.

It includes both existing mortgages and new mortgages with a variable interest rate that will be disbursed during the 12-month duration of the programme.

A basic condition is that the eligible loans are performing throughout the duration of the programme.

It is important to note that the reduction in interest rates will not affect or modify, in any way, the margin provided for in the respective credit facility agreement of each individual customer.

All eligible borrowers will automatically join the programme without requiring any action on their part, and they will be informed individually, the bank said.