CYPRUS: Mortgage rates decline to a new historic low

Interest rates for house purchases declined to a new historic low in October, according to data released by the Central Bank of Cyprus.

The lending rate for home purchases declined to a new all-time low of 2.26% in October, compared with 2.37% in the previous month.

Furthermore, interest rates for consumer credit and interest rate for deposits with agreed maturity up to one year also declined to new historic lows.

New lending increased by €28.5 mln in October compared to September amounting to €292.1 mln.

Interest rates on deposits with agreed maturities up to one year, declined to 0.54% in October from 0.62% the previous month, marking a new all-time low.

The corresponding rate for deposits from non-financial corporations declined to 0.75% from 0.83% in the previous month.

Interest rates for consumer credit declined to 3.48% in October compared with 3.60% the previous month.

Rates for loans to non-financial corporations for amounts up to €1 mln declined to 3.49% from 3.52% in the previous month, while rates for corporate loans above €1 mln fell to 3.26% in October from 3.62% in the previous month.

New loans in October reached €292.1 mln compared with €263.6 mln in the previous month, mainly due to the rise in home mortgages and corporate loans above €1 mln.

Consumer loans increased in October to €13.3 mln from €10.8 million. New loans for house purchases rose to €69.2 mln compared with €58.9 mln in September.

New corporate lending up to €1 mln was €43.5 mln in October from €43.1 mln, while new corporate loans above €1 mln reached €144.8 mln compared with €131.8 mln in September.