Interest Rate Subsidy Scheme for Income Qualified Home Loans
The Ministry of Finance announces the launch of the Interest Rate Subsidy Scheme for Mortgage Loans with Income Criteria.
The purpose of the Scheme is to provide financial support to households, that have taken out loans for home ownership purposes, in the form of an interest rate subsidy with the aim of reducing the negative effects on disposable income from the increase in inflation and interest rates.
Beneficiaries of the Scheme are natural persons who:
- have concluded (signed) a loan agreement from 1/1/2022 to 31/12/2023 and based on this a loan account has been opened and
- have performing mortgage loans, with a floating interest rate, (regardless of the base of interest rate) which was not made for repayment/restructuring of a previous loan and
- have a mortgage loan that does not exceed €400,000 and
- have an Annual Family Income of up to €50,000, and
- have settled or regulated their tax obligations to the Tax Department that relate up to and including the tax year 2023.
The Scheme subsidizes 50% of the average increase in the interest rate incurred by the borrower in relation to the interest rate in force when he signed the loan agreement for a period of 2 years from the date of the first disbursement of the loan. The interest rate subsidy cannot exceed a percentage of more than 2%.
The Scheme is implemented by the Treasury of the Republic of Cyprus which the public can contact:
Tel. No.: 22602365, 22602381, 22602317
email: interestsubsidyscheme@treasury.gov.cy
The detailed Terms of the Scheme, the Application and the Completion Guide as well as answers to frequently asked questions, will be posted on the website of the Treasury of the Republic of Cyprus .
Applications, along with supporting documents, will be submitted in hard copy to the Citizen’s Service Centers and Citizens Centers (KEP and KEPO) from 02/01/2025 until 31/03/2025.