According to a new report by the Central Bank of Cyprus (CBC), fixed-rate home loans have become the preferred choice for new borrowers, marking a major shift in the way Cypriots finance one of the biggest purchases of their lives.
The change follows several years of interest rate turbulence, as the European Central Bank first raised rates sharply to tackle inflation before gradually beginning to cut them again. For many households, that uncertainty made one thing more valuable than anything else: knowing exactly what the monthly mortgage payment would be. The CBC says while most new mortgages before 2022 carried variable interest rates or fixed rates lasting less than a year, today’s market is dominated by loans with fixed interest rates for between one and five years.