Nicosia, Cyprus. New housing loans in Cyprus rose significantly in May 2026, while the average interest rate on new housing purchase loans reached 4.06 per cent, according to the latest data from the Central Bank of Cyprus on interest rates and new lending.
Total net new loans increased to €361.90 million in May from €331.30 million in April, with housing loans recording the strongest monthly rise.
Loan growth in May
Housing loans rose to €145.50 million in May from €106.00 million in the previous month.
New consumer loans also increased, reaching €23.90 million compared with €21.80 million in April. New loans to non-financial corporations of up to €1 million rose to €63.40 million from €39.40 million.
By contrast, new business loans above €1 million declined to €121.50 million from €156.80 million in April.
Interest rate changes
The average interest rate on new housing loans increased to 4.06 per cent in May from 3.73 per cent in April.
Consumer loan rates fell to 6.95 per cent from 7.19 per cent, while interest rates on corporate loans of up to €1 million rose slightly to 4.27 per cent from 4.20 per cent.
For corporate loans above €1 million, rates declined to 3.85 per cent from 4.08 per cent.
Deposit rates and euro area comparison
Deposit rates also increased. The interest rate on household time deposits of up to one year rose to 1.25 per cent from 1.20 per cent, while rates for non-financial corporations increased to 1.31 per cent from 1.23 per cent.
The Central Bank said loan interest rates in Cyprus remain broadly in line with euro area medians.