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12° Nicosia,
08 October, 2025
 
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It was a low bar

Setting expectations so low, we might just trip over them

Panayiotis Rougalas

Panayiotis Rougalas

The Housing Grant Scheme for young couples and individuals up to 41 years of age was launched on 31 October 2024, with a target of 400 beneficiary applications and a total budget of €15 million. Online applications opened on 15 November 2024 and closed on 31 December 2024. During the first phase of the Scheme, 275 applications were submitted, of which 233 were deemed valid and 42 invalid. “The 233 valid applications have already been forwarded to the District Administrations, and their review is underway,” the Ministry of Interior stated.

The Scheme is being re-launched in 2025, streamlined to achieve its target of supporting 400 beneficiaries. It will remain open until 30 November 2025, unless the target of 400 approved applications is reached earlier or the budget is exhausted. There is also the possibility of extending the number of beneficiaries if additional budget appropriations become available.

The major change, however, comes with the increase of the maximum gross family income threshold by €5,000 per category, expanding the pool of eligible applicants. To be fair, the significant change isn’t just about eligibility—it’s about the viability of such loans. With this adjustment, it’s far more realistic for a single citizen in Cyprus earning just under €30,000 gross annually to manage a loan repayment compared to someone earning €25,000 gross. You might ask, does a €5,000 difference really matter? Absolutely—just try running a test in a bank’s loan approval department, and you’ll see the impact.

In my opinion, the income thresholds should be raised by €10,000 instead of €5,000. This would ensure that both banks and the state avoid putting undue pressure on borrowers, reducing the risk of non-payment at the first financial setback. It would also help prevent loans backed by the state from turning into bad debt. With higher thresholds, banks would likely approve loans more readily, including amounts that reflect current property prices, which, like everywhere else, have been rising in Cyprus.

Such programs serve a vital purpose—they have a social mission. They are designed for individuals and families striving to live with dignity, working “clean” jobs, paying their taxes, and wanting to be productive members of society but who lack support from other sources to purchase property.

In future Government plans, consideration should be given to using this financial assistance as the applicant’s initial down payment when seeking a bank loan. This may sound simplistic, but it addresses the number one obstacle faced by citizens who want to buy property: the upfront cost. Many individuals earn salaries that could easily cover reasonable monthly loan payments but struggle to save for a down payment. So, grab your “calculators” and think of ways to help cover this initial cost in the next set of projects. It would make a world of difference for many people—no doubt about it.

 This article was translated from its Greek original.

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