All credit institutions in Cyprus reduced their mortgage interest rates in February, according to comparative data published by the Central Bank of Cyprus on Thursday. At the same time, most banks also lowered their term deposit rates, albeit to a lesser extent.

Despite the reductions, interest rates on loans to households and businesses in Cyprus remain significantly higher than the average across the eurozone, while deposit rates offered to savers are notably lower than European benchmarks.

Mortgage Rates: Broad-based reductions but still above Eurozone levels

The lowest available mortgage rate for home purchases with a term exceeding five years is now 3.28%, offered by Societe Generale, down from 3.32% in January. The Housing Finance Corporation (Οργανισμός Χρηματοδοτήσεως Στέγης) follows at 3.31%, also down slightly.

Here is how the rest of the market stands:

• Ancoria Bank: 3.57%
• National Bank of Greece (Cyprus): 3.65%
• Cyprus Development Bank: 3.65%
• Hellenic Bank: 3.90%
• Alpha Bank: 4.01%
• AstroBank: 4.10%
• Eurobank: 4.25%
• Bank of Cyprus: 4.54%

Average mortgage interest rate: 4.17%

Eurozone average: 2.43%

Household Term Deposit Rates: Cyprus still trailing the Eurozone

For term deposits up to two years, the highest average annual rate for households is offered by Arab Jordan Investment Bank at 2.71%, followed by:

• National Bank of Greece (Cyprus): 2.38%
• Banque SBA: 2.25%
• Jordan Kuwait Bank: 2.21%
• Housing Finance Corporation: 1.87%
• Jordan Ahli Bank: 1.84%
• Ancoria Bank: 1.79%
• Eurobank: 1.78%
• Alpha Bank: 1.72%
• Cyprus Development Bank: 1.60%
• AstroBank: 1.47%
• Bank of Cyprus: 0.78%
• Hellenic Bank: 0.64%

Average term deposit rate (households): 1.11%

Eurozone average: 2.44%

Business Loan Rates: Modest declines but still Elevated

Business loans with a maturity of over five years have also seen some reductions:

• National Bank of Greece (Cyprus): 4.16%
• Hellenic Bank: 4.25%
• Eurobank: 4.61%
• Alpha Bank: 4.65%
• Ancoria Bank: 5.17%
• Bank of Cyprus: 5.26%
• Cyprus Development Bank: 5.32%
• Banque SBA: 5.44%
• Societe Generale: 5.63%
• AstroBank: 5.66%

Average business loan rate (over 5 years): 4.92%

Eurozone average: 3.25%

Business Term Deposit Rates: Some institutions offer competitive yields

• Societe Generale: 2.29%
• AstroBank: 2.23%
• Cyprus Development Bank: 2.18%
• Jordan Kuwait Bank: 2.17%
• Arab Jordan Investment Bank & Banque SBA: 2.04%
• National Bank of Greece (Cyprus): 1.98%
• Alpha Bank: 1.84%
• Jordan Ahli Bank: 1.82%
• Hellenic Bank: 1.68%
• Bank of Cyprus: 1.51%
• Ancoria Bank: 1.50%
• Housing Finance Corporation: 1.26%
• Eurobank: 1.24%

Average term deposit rate (businesses): 1.60%

Eurozone average: 2.76%

While Cyprus has seen a broad-based reduction in both lending and deposit rates, the disparity between local and eurozone averages remains striking. Lending rates remain substantially higher, which can weigh on consumer and business financing, while depositors continue to earn well below the eurozone average.

The Central Bank’s data highlights both progress and structural challenges in the local banking environment — raising important questions about competitiveness, monetary policy transmission, and consumer value in Cyprus’s financial sector.

Financy Team

Apr 24, 2025