In a proactive effort to protect the island’s most vulnerable residents, Finance Minister Makis Keravnos has confirmed the government’s intent to revive the Mortgage to Rent program. Speaking before the House Finance Committee on Friday, March 20, 2026, Keravnos indicated that the scheme will likely reopen for several months to accommodate new applications from struggling homeowners.
To ensure a swift rollout and avoid a lengthy renegotiation process with European authorities, the Ministry plans to maintain the existing eligibility criteria, ensuring the program remains within previously approved fiscal boundaries.
Legislative Shield: New Foreclosure Reforms Tabled
The move to reopen the rental scheme coincides with the formal submission of two critical bills to the House of Representatives. These legislative pieces, recently greenlit by the Council of Ministers, aim to overhaul the foreclosure framework to prevent the loss of primary residences.
Key features of the proposed reforms include:
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Empowered Financial Ombudsman: The Ombudsman will now have the authority to issue binding decisions for disputes involving amounts up to €20,000, covering the vast majority of active cases.
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Early Intervention: Homeowners will gain earlier access to the Ombudsman to verify debts and initiate restructuring talks before a foreclosure notice is served.
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Insolvency Support: Borrowers will be granted more time to stabilize their finances through structured repayment plans guided by professional insolvency advisers.
A Delicate Economic Balance
Minister Keravnos emphasized that while social protection is vital, the government’s overriding priority remains the stability of the national financial system. Amidst global inflationary risks and regional uncertainty, the Ministry is wary of any changes that could spook investors or undermine Cyprus’s recent economic growth.
‘We must act with caution,’ Keravnos noted, stressing that any measures must be balanced against the need to maintain a healthy banking sector and a stable economy.
Political Friction Ahead of Elections
Despite the government’s positive signals, the political atmosphere remains charged. Opposition lawmakers continue to push for broader legal rights, arguing that borrowers should have more power to challenge foreclosure proceedings directly in court.
With Parliament expected to dissolve soon in preparation for upcoming elections, the debate over these protections is set to intensify. Party backed counter proposals are already being drafted, making the next few sessions of the Finance Committee a critical battleground for the future of Cypriot property rights.
Source: news.cyprus-property-buyers.com