Housing loans rates decline to a new low

Interest rates for house purchase declined to a new historic low in October, according to data released by the Central Bank of Cyprus, concerning the interest rates on new deposit and loan contracts.

Furthermore, interest rates for consumer credit and interest rate for deposits with agreed maturity up to one year also declined to new historic lows.

Moreover, new lending increased by Euros 28.5 million in October compared to September amounting to Euros 292.1 million.

Concerning deposits, interest rates for deposits with agreed maturities up to one year, declined to 0.54% in October from 0.62% the previous month, marking a new all-time low.

The corresponding rate for deposits from non-financial corporations declined to 0.75% compared with 0.83% in the previous month.

On lending rates, interest rates for consumer credit declined to 3.48% in October compared with 3.60% the previous month.

Lending rate for house purchase declined to a new all-time low amounting to 2.26% in October, compared with 2.37% in the previous month.

Rates for loans to non-financial corporations for amounts up to Euros 1 million declined to 3.49% from 3.52% in the previous month, while rates for corporate loans above Euros 1 million declined to 3.26% in October from 3.62% in the previous month.

According to the CBC, new loans in October amounted to Euros 292.1 million compared with Euros 263.6 million in the previous month, mainly due to the rise in loans for house purchase and to the corporate loans above Euros 1 million.

Consumer loans increased in October to Euros 13.3 million compared with Euros 10.8 million the previous month. New loans for house purchase rose to Euros 69.2 million compared with Euros 58.9 million in the September.

New corporate lending up to Euros 1 million amounted to Euros 43.5 million in October compared with Euros 43.1 million the previous month, while new corporate loans above Euros 1 million amounted to Euros 144.8 million compared with Euros 131.8 million in September.

Source: Cyprus News Agency