[Reuters]
The government of Cyprus is stepping up to help homeowners struggling with rising interest rates and inflation.
In a recent meeting at the Presidential Palace, President Nikos Christodoulides and the Council of Ministers approved a new mortgage interest rate subsidy scheme designed to give households some financial relief.
The scheme aims to ease the financial pressure caused by increased interest rates and inflation, specifically for homeowners who took out mortgages in the past two years. By offering a subsidy on mortgage interest, the government hopes to reduce the strain on disposable income for affected households.
To be eligible for the benefit one must have signed a mortgage loan agreement in 2022 or 2023, for a loan up to 400,000 euros with a floating rate, for buying or building a primary residence. Annual family income must not exceed €50,000.
The scheme will cover 50% of the difference between the average total interest rate during the reporting period and the interest rate at the time the loan was issued. The maximum subsidy is capped at 2 percentage points and lasts for a maximum of two years from the date of the first loan disbursement.