Applicants have submitted 662 new requests to join Cyprus’s “Rent versus Instalment” scheme, with tonight’s midnight deadline now the last chance to apply. The scheme aims to protect the primary residence of vulnerable households that cannot meet their loan obligations and have pledged their home as collateral.
Applicants submitted the new applications between May 4 and Monday, July 27, to KEDIPES, the body implementing the scheme, and it remains unclear whether the Finance Ministry will grant a short extension beyond tonight’s deadline, despite pressure in that direction. Finance Minister Makis Keravnos will decide on any possible extension.
38% of applications rejected
Phileleftheros has learned that 662 applications were submitted during the new application period, of which 38% were rejected for failing to meet the criteria. The number of rejected applications is estimated at around 252.
A large number of applications came in during the first few weeks, as borrowers already had all the necessary documents ready and had been waiting for a new opportunity to join the “Rent versus Instalment” scheme.
A source close to the process told Phileleftheros that interest picked up sharply in recent days, with more applicants submitting their applications. As a result, the source said, the total number of applications has now exceeded 662.
Since the “Rent versus Instalment” scheme first launched in 2024, a total of 4,002 applications have been submitted to KEDIPES, of which 1,221 have been approved. So far, 831 properties have been brought into the scheme and acquired by KEDIPES.
Background to the reopened scheme
The “Rent versus Instalment” scheme reopened last May, after political parties pushed for it during parliamentary debate on changes to the legal framework governing foreclosures. The new application period aimed to give citizens at risk of losing their primary residence another chance to avoid losing their home.
A government source said the scheme is a targeted, socially-oriented intervention for managing non-performing loans. The source added that it allows vulnerable households to keep their primary residence while securing greater stability and predictability in their daily lives.
The scheme’s reopening reinforced the wider effort to reduce non-performing loans, keeping the protection of primary residences and support for citizens most in need at its centre.
Despite the scheme reopening, the eligibility criteria remained unchanged, so it would not need to undergo fresh scrutiny and evaluation by the European Commission over its compatibility with EU state-aid law.
The scheme’s provisions
The scheme offers a favourable arrangement, securing housing for vulnerable households, with the state paying the rent. Eligible borrowers are required to repair any physical damage and keep the property in good condition. For those who join the scheme, the borrower transfers ownership of the primary residence to KEDIPES, while the loan secured against the home is settled, along with the borrower’s corresponding obligation to make instalment payments.
This removes the risk of the property being sold at auction. At the same time, former owners, or their first-degree relatives, retain the right to buy back the property after five years.
Those eligible for the “Rent versus Instalment” scheme are recipients of social benefits who own a primary residence worth under €250,000, as well as applicants to the “Estia” and “Oikia” schemes who were rejected due to unviability and own a home worth up to €350,000.
