A slight decline in average interest rates on housing loans was recorded in Cyprus in September 2026 compared with the previous month, while interest rates on business loans increased, according to data released on Wednesday by the Central Bank of Cyprus (CBC).
At the same time, interest rates on deposits from both households and businesses recorded a significant increase.
Housing loan interest rates
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According to CBC data, the average interest rate on loans to euro area resident households for house purchases in euro (new business – new contracts), irrespective of the initial rate fixation period, fell to 3.24% in September 2026, from 3.31% in August 2026. The euro area average stood at 3.64%, compared with 3.62% in the previous month.
According to the available data, the highest housing loan interest rate in September 2026 was offered by the Housing Finance Corporation at 3.55%, up from 3.41% in August 2026. This was followed by Bank of Cyprus at 3.37%, down from 3.54%, Ancoria at 3.27%, compared with 3.28%, Eurobank at 3.21%, up from 3.15%, and Alpha Bank Cyprus at 2.80%, compared with 2.78%.
Meanwhile, the average interest rate on new loans to euro area resident businesses of up to pound 1 million, in euro and irrespective of the initial rate fixation period, rose to 4.67% in September 2026, from 4.39% in August 2026.
The highest rate was recorded by the Cyprus Development Bank at 7.90%, up from 5.48%, followed by Banque SBA at 7.46%, compared with 7.16%. The lowest rates were offered by Alpha Bank Cyprus at 4.28%, up from 4.16%, and Eurobank at 4.34%, compared with 4.19%.
Household deposit interest rates increase
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The average interest rate on deposits with an agreed maturity of up to one year from households rose to 1.62% in September 2026, compared with 1.35% in the previous month. The corresponding rate in the euro area increased to 2.33%, from 2.13% in August 2026.
According to CBC data, Ancoria Bank offered the highest rate at 1.88%, up from 1.36% in August, followed by National Bank of Greece at 1.83%, compared with 1.69%, and Eurobank at 1.70%, up from 1.39%.