As we approach the end of the year, the latest Central Bank of Cyprus data for October provides a clear snapshot of how Cypriot banks are pricing deposits and housing loans.

The picture remains familiar: deposit rates stay low, while borrowing costs remain elevated, reinforcing the interest rate gap faced by households.

Deposit Rates: Term Deposits up to 1 Year (Households).

Deposit rates offered by Cypriot banks continue to vary significantly, with only a small number of institutions offering returns meaningfully above the market average.

Key Takeaways for Savers

• The gap with the eurozone average remains wide, despite higher ECB policy rates.
• Large domestic banks continue to offer sub-1% returns, limiting the real return on savings.
• Smaller and foreign-owned banks remain more competitive on deposits, though still modest in absolute terms.

Loan Rates: Housing Loans for Households

On the lending side, housing loan rates remain relatively high, reflecting tighter credit conditions and banks’ cautious risk pricing.

Key Takeaways for Borrowers

• Mortgage rates remain above 3% on average, despite signs of monetary policy stabilisation.
• Differences between banks are material, making rate comparison essential.
• Cyprus loan rates remain slightly below the eurozone average, but still historically elevated.

What This Means Going Into the New Year

As the year closes, Cyprus continues to show a structural imbalance in bank pricing:

• Savers face limited incentives to hold funds in traditional deposits.
• Borrowers continue to absorb relatively high financing costs.
• The deposit–loan spread remains wide, supporting bank profitability but weighing on household financial planning.

For consumers, the conclusion is clear: comparing banks is no longer optional. Even small differences in rates can have a meaningful impact on long-term returns or borrowing costs.

At Financy, we believe transparency and comparison are essential tools for making better financial decisions, especially in a market where pricing differences are significant but not always visible.

Financy Team

Dec 17, 2025