Government Interest Subsidy Scheme for New Housing Loans

Interest Subsidy of up to 1.5%

Purchase or construction of a primary residence

Subsidize part of the interest for 4 years

We are participating in the Interest Subsidy Scheme on New Housing Loans

The aim of the scheme is to support households in taking out loans for owner-occupied housing, in the form of interest rate subsidies, in order to reinforce efforts being made to support the economy, as a result of the impact of the Covid-19 pandemic.

The Scheme covers housing loans to individuals within Cyprus for which a contract was made from 01/03/2020 and will be approved by 30/06/2021 for the purpose of owner-occupied housing, and, specifically, for the primary residence’s purchase or construction, including purchasing the plot. The maximum duration of the interest subsidy will be four years and the interest rate will be subsidised up to 1.5 percentage points (150 basis points). The loan amount for which the interest rate will be subsidised cannot exceed €300,000.

The scheme does not apply for loans where the interest rate has been subsidised through other special government schemes and/or existing housing loans restructurings.


Government Interest Subsidy Scheme
  • Government Interest Subsidy Scheme


Monthly Instalment (the first 4 years)

Monthly Instalment after the first 4 years

Total Payable Amount

1. The data in reference are for guidance only, should only be used for guidance and do not, in any way, constitute professional advice. The exact numbers may differ in real time from the facility being granted.
2. The interest rates have been calculated according to Hellenic Bank’s Main Base Rate, which on 16/02/2021 amounted to 0,09% for schemes in EURO. The Aggregate Interest Rate comprises of Hellenic Bank’s Main Base Rate and the margin for the particular product and is varied accordingly in case either and/or both of these elements is/are varied in accordance with any applicable law. Hellenic Bank has the right to charge default interest rate, over and above the Aggregate Interest Rate, on any overdue amount.
3. The A.P.R. has been calculated based on Hellenic Bank’s annual interest rate, the hypothetical credit amount, the credit period, the charges, fees and other commissions presented on the above table. The A.P.R. will be altered in case any of the above variables (i.e. the annual interest rate, the credit period, the level and frequency of instalments and any other charges, fees and commissions) change.
4. The interest rate and the instalment of your loan may be varied by Hellenic Bank from time to time, in accordance with applicable legislation.
5. Where customer opts to cover own contribution with a mortgage of immovable property other than primary residence, the Aggregate Interest Rate and A.P.R. will be varied according to Hellenic Bank’s pricing policy at that time.
6. Approval of the loan is subject to Hellenic Bank receiving satisfactory securities. Hellenic Bank may, at its discretion, reject a loan application according to its existing lending policy at that time.
7. For the calculation of A.P.R. and Total Amount Payable the following have been included: any arrangement fees, any legal documentation fees, stamp duties for the credit facility documents, property valuation fees and the Land Registry Office fee (1%) for the registration of the mortgage. Life and fire/ earthquake insurance premiums are not included in the calculations.
8. Stamp duties may vary depending on the securities obtained and/or the signing/provision of other relevant documents.
9. Life and primary residence fire/ earthquake insurances are mandatory. By entering into the relevant policies, the A.P.R. and Total Amount Payable will increase.