The Mortgage to Rent scheme in Cyprus offers struggling homeowners a chance to remain in their homes as tenants by transferring their property title to the Asset Management Company. After five years, tenants have the option to buy back their homes at 65% of the market value, providing a fresh start towards regaining homeownership and financial stability.
The mortgagetorent scheme has been extended to assist more homeowners, including welfare recipients and individuals with unresolved loans from the Estia Plan, offering a lifeline to vulnerable citizens struggling with nonperforming loans. The application deadline for the expanded scheme is August 2024, providing hope for nearly 2,500 borrowers in need.
The new mortgagetorent scheme in Cyprus allows vulnerable homeowners facing foreclosure to transfer home ownership to Kedipes and rent it for 14 years, with the state covering the rent. Eligible participants, including ‘trapped buyers’, can later buy back their homes. This initiative is aimed at safeguarding primary residences for families in financial distress. Syprodat, the Cyprus Borrowers Association, has welcomed the scheme and encourages those who qualify to actively engage with this new opportunity.
The MortgagetoRent (MtR) scheme is a voluntary program that helps homeowners with mortgage arrears by transferring property ownership to their lender for five years, allowing them to stay as tenants in a 14year rental agreement with Kedipes. The scheme, awaiting parliamentary approval, is part of a comprehensive package of measures targeting nonperforming loans and aims to provide immediate relief and longterm economic resilience for vulnerable homeowners.
