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24 June, 2024
 
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Mortgage-to-Rent scheme sparks overwhelming interest as call centers inundated

Borrowers rush to seize opportunities as KEDIPES faces surging demand for novel housing solution

Newsroom

In a significant response to the newly launched 'Mortgage to Rent' Scheme by the implementing agency, KEDIPES, the service center has been inundated with hundreds of calls since the official commencement of the initiative today.

KEDIPES reported a surge in call volumes following the official announcement of the Scheme, with yesterday witnessing a notable increase. Concurrently, there has been a rise in the number of visitors to the KEDIPES provincial service offices in Nicosia, Limassol, Larnaca, Paphos, and Famagusta.

President Lambros Papadopoulos expressed satisfaction with the public's positive response to the Plan, emphasizing that applications are now being accepted.

Papadopoulos urged eligible borrowers to "seriously consider this opportunity provided by the Scheme as it offers a highly favorable settlement and resolution to their non-performing loans."

Service Centers and the dedicated KEDIPES Call Centre at 22743400 have been established specifically for the 'Mortgage to Rent' Scheme, providing assistance and addressing queries from borrowers about their eligibility and application process.

This scheme, aimed at safeguarding vulnerable non-performing borrowers from home loss, represents the fourth government initiative supporting borrowers with a secured primary residence, following ESTIA, OIKIA, and the Equal Burden Sharing Agency scheme.

Under this new plan, eligible borrowers transition to tenants as KEDIPES assumes ownership of their home, writing off their loan along with the collateral value. The government will cover rent payments for 14 years, with a repurchase option after five years at a preferential rate. For individuals over 65, rent payments extend for a lifetime.

KEDIPES estimates approximately 2,500 eligible borrowers, with the scheme open for applications over nine months. Applications are accepted at the five provincial KEDIPES offices, where forms are available, and through the agency's website, www.kerdipes.org.cy.

Eligibility Criteria:
- The primary residence loan was non-performing as of December 31, 2021, and December 31, 2022.
- The market value of the primary residence, determined through appraisals, is up to €250,000.
- The applicant has resided in the main residence since January 1, 2021, for at least six months per year.

Eligible borrowers must be recipients of specific allowances between January 1, 2021, and December 31, 2022, including public assistance, ECI, child benefit, single-parent family allowance, low-income pensioner's allowance, disability pension, mobility allowance, care allowance for paraplegic/quadriplegic persons, blind person's allowance, and transport allowance for specific medical conditions. Additionally, applicants in the "ESTIA" and "OIKIA" schemes with specific conditions are considered eligible.

[Information from CNA]

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Cyprus  |  mortgage  |  loans

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