Mortgage interest rates rose to 4.91% in October 2023, while at the same time, household fixed term deposits with one-year maturity fell to 1.58%, compared to the previous month, according to data published on Monday by the Central Bank of Cyprus, which are included in the November 2023 edition of Monetary and Financial Statistics. 

Deposit Rates

According to CBC, the interest rate on deposits from households with an agreed maturity of up to one year recorded a decrease  to 1.58%, compared with 1.59% in the previous month. The corresponding interest rate on deposits from non-financial corporations registered an increase to 2.26%, compared with 1.67% in the previous month

Lending Rates

On the contrary, the interest rate on loans for house purchase increased to 4.91%, compared with 4.42% in the previous month. The interest rate on consumer credit increased to 6.27%, compared with 6.05% in the previous month.

The interest rate on loans to non-financial corporations for amounts up to €1 million increased to 5.77%, compared with 5.72% in the previous month. The interest rate on loans to non-financial corporations for amounts over €1 million registered an increase to 6.26%, compared with 5.59% in the previous month.

Amounts of new loans

Despite the increase in lending rates, total new loans recorded an increase to €693.4 million in October 2023, compared with €578 million in the previous month. New loans for consumption increased to €24.6 million, compared with €24.5 million in the previous month and new loans for house purchase recorded an increase to €218.1 million, compared with €172.6 million in the  previous month.

New loans to non-financial corporations for amounts up to €1 million increased to €92.4 million, compared  with €83.5 million in the previous month, with new loans to non-financial corporations for amounts over €1 million registered an increase to €348.5 million, compared with €278.7 million in the previous month.