Cyprus Mortgage to Rent Scheme — Everything You Need to Know (2026)

What Is the Mortgage to Rent Scheme?

Think of it like a financial reset button. Instead of being repossessed and losing your home entirely, the government steps in through a body called KEDIPES (the Cyprus Asset Management Company). KEDIPES buys your mortgage from the bank, becomes the owner of your property, and you stay in the same home — but now as a tenant paying rent, rather than a borrower paying a mortgage.

The agreement lasts for 14 years, and after 5 years you have the right to apply to buy the property back at a price that factors in the rent you've already paid.

Who Is KEDIPES?

KEDIPES is a state-owned asset management company. Its primary role is to purchase non-performing (bad) loans and other high-risk assets from Cypriot banks. By doing this, it helps stabilise the banking system while also protecting vulnerable borrowers from losing their homes.

Do I Qualify?

The eligibility criteria are specific. To apply, all of the following must apply to you:

• Your mortgage must have been classified as non-performing on 31 December 2021 or 31 December 2022

• The market value of your property must not exceed €250,000

• The property must be your primary residence

• You must have been living there for at least 6 months per year since 1 January 2021

There is also a second category for recipients of welfare benefits who were deemed ineligible for previous schemes (Estia and Oikia) — in some cases with a property value threshold up to €350,000.

What Happens After the 14 Years?

At the end of the 14-year rental period:

• If you can afford to, you have the right to buy the property back — with your rent payments factored into the purchase price.

• If a borrower passes away, their next of kin can exercise the same buy-back right.

• If conditions of the scheme are not met, KEDIPES can sell the property at their discretion.

For borrowers over the age of 65, there is no fixed timeframe imposed to repay or buy back the property.

What About the Rent Payments?

Rent is calculated based on the price KEDIPES paid for the property and the length of the agreement. For the most financially vulnerable households, the government covers the full cost of rent on their behalf.

How Do I Apply?

Application window: 4 May 2026 — 31 July 2026

1. Download the application form from the KEDIPES website

2. Complete it fully and accurately

3. Submit it in person at any KEDIPES regional office

4. For questions, call the helpline: +357 22 743400

Note: Online submission is not accepted. You must attend in person.

Red Flags to Watch Out For

🚩 Unofficial 'helpers' — Be wary of anyone charging fees to help you apply. The process is free and KEDIPES staff can guide you.

🚩 Missing the deadline — The window closes 31 July 2026. Don't wait. These windows don't stay open indefinitely.

🚩 Assuming you don't qualify — Many people rule themselves out without checking. The criteria are specific but worth verifying properly.

🚩 Not understanding the buy-back terms — Make sure you understand what happens at the end of the 14 years before you sign anything.

🚩 Forgetting this affects your credit record — Your property will change ownership. Get independent legal advice before proceeding.

The Bottom Line

The Mortgage to Rent Scheme isn't a perfect solution — but for the right household, it's a genuine lifeline. It keeps a roof over your head, removes the immediate burden of mortgage debt, and gives you a structured path to potentially reclaim your home in the future.

Financial literacy isn't just about building wealth. It's about knowing the safety nets that exist when things go wrong.