Mortgage rates go up in Cyprus
Banks in Cyprus raised the interest rates on home loans in August, while reducing the interest rates offered on household deposits, according to data released by the Central Bank of Cyprus on Wednesday. At the same time, the amount of new loans issued in August saw a sharp decline, dropping by nearly a third compared to July.
The average interest rate on household deposits with a maturity of up to one year fell to 1.79% in August, down from 1.96% the previous month. However, interest rates on deposits from non-financial corporations increased slightly to 2.33%, compared to 2.28% in July.
When it comes to borrowing, the cost of consumer loans dropped slightly to 6.59%, down from 6.67% in the previous month. On the other hand, mortgage rates rose, with the average interest rate for home loans increasing to 4.65%, up from 4.59%.
For businesses, the interest rate on loans of up to 1 million euros decreased to 5.36%, compared to 5.61% in July. Similarly, loans of over €1 million saw a dip in rates, falling to 5.42% from 5.64%.
Total new loans issued by banks in August amounted to €395.5 million, significantly lower than the €596.3 million issued in July.
