The Cyprus Mortgage to Rent program has garnered significant interest from residents across the island since its launch. Hundreds of people have expressed interest in joining the scheme, which aims to provide relief for homeowners struggling with their mortgage payments. KEDIPES, the organization managing the program, has received approximately 2,500 applications. Of those, about 1,700 applicants were deemed eligible, while the rest were rejected. So far, 20 beneficiaries have received approval.
Applications for the Mortgage to Rent program can be submitted until September 6, 2024. Importantly, submissions must be made in paper form and delivered to one of KEDIPES’ offices located at:
7 Grigori Afxentiou Street, Nicosia, 1096
97 Gladstonos Street, Oasis Complex, Block E, 3rd Floor, Limassol, 3032
5 Giorgos Christodoulidis Street, Larnaca, 6041
Kinira and Koriou Junction, 7, 4th Floor, Paphos, 8011
Griva Digeni Street 4, Paralimni, 5281
For further details, interested parties can contact KEDIPES at 22 743400.
The scheme primarily targets overdue loans on primary residences valued up to €350,000, with beneficiaries typically being low-income households and pensioners. Individuals who have applied for and been rejected from the ESTIA and Oikia programs due to their financial situations are also eligible to apply.
The program operates by having KEDIPES acquire non-performing loans and high-risk assets from Cypriot banks. Once a mortgage is transferred to KEDIPES, struggling borrowers are given the option to rent their home from the institution for a period of 14 years. Rent is set at 65% of the market value. At the end of this rental period, the borrower can reclaim their property by repaying the outstanding arrears. The final purchase price of the property is calculated by subtracting the total rent paid over 14 years from the original price at which KEDIPES acquired the property. If the borrower is unable to buy back the home due to financial constraints or death, their next of kin can step in under the same conditions. If the terms are not met, KEDIPES reserves the right to sell the property after the rental period.
This initiative not only provides relief to struggling homeowners but also helps Cypriot financial institutions reduce the volume of non-performing loans, potentially relieving the banking system of up to €10 billion in toxic debt.
Source: stockwatch.com.cy, dom.com.cy