The President of the Republic, Mr. Nikos Christodoulides, presided today over a meeting of the Council of Ministers at the Presidential Palace.
Following the meeting, the Government Spokesperson, Mr. Konstantinos Letymbiotis, stated to journalists:
“The Council of Ministers today approved the terms of the Housing Loan Interest Subsidy Scheme, the application, and the Application Completion Guide.
The scheme’s terms, application form, and guide will be posted on the website of the General Accounting Office.
Applications can be submitted at Citizen Service Centres (CSCs) and District Citizen Service Centres (DCSCs) from 02 January 2025 for a period of two months.
Purpose of the scheme
The scheme aims to provide financial support to households that have entered into loans for homeownership purposes, in the form of interest subsidies. The ultimate goal is to mitigate the negative impact on disposable income caused by rising inflation and interest rates.
Beneficiaries
Eligible individuals must meet the following criteria:
- Have signed a loan agreement between 1 January 2022 and 31 December 2023, under which a loan account has been opened.
- Have active housing loans with variable interest rates, regardless of the type of base interest rate, provided the loan was not taken for the repayment or restructuring of a previous loan. It covers the purchase or construction of a primary residence, including part of the loan for purchasing land.
- The total loan amount for which the application is submitted must not exceed €400,000.
- Annual household income must not exceed €50,000.
- Have settled or arranged any tax obligations with the Tax Department for the tax years up to and including 2023.
Subsidy details
- The maximum subsidy period for the interest rate is two years.
- Borrowers will receive a subsidy covering 50% of the difference between the average total interest rate during the reference period and the total interest rate in effect at the date the loan account was issued in the banking system. The maximum subsidy is capped at two percentage points (200 basis points) for a period of two years from the date of the first disbursement.
According to the European Commission, the Scheme can be implemented as it does not include any elements of state aid.
Budget allocation
The necessary budget provisions have been made in the General Accounting Office for the years 2025, 2026, and 2027, amounting to €12,000,000, €11,000,000, and €10,000,000, respectively.
It is reminded that the Scheme is part of a series of measures adopted by the Government to support households against the impact of inflationary pressures and rising costs.”
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