Is it profitable to take out a mortgage in Cyprus?

The Cypriot authorities regularly offer all kinds of mortgage programs in order to motivate the local population and foreign citizens to buy apartments and houses, rather than rent them. Such a policy is working - nowadays the country's indicator of the number of properties owned by the number of inhabitants is the highest in the entire European Union.

What are the benefits?

It is worth to look at the statistics:

• average rent in Cyprus for an apartment of about 100 sq. m. is 700-800 euros - the monthly mortgage payment for such housing will be the same;
• the average profitability of rented housing is 6% - putting money on a deposit will not make such a profit (here the percentage is much lower).

Banks that provide lucrative mortgage programs also have advantages. Due to the high liquidity of housing they receive high profits from loans for the purchase or construction of housing, its completion and repair, as well as the re-registration of existing mortgage loans.