Turkey announces cheaper mortgages for mid-income Turks

Turkish Finance Minister Nureddin Nebati has said that mortgages with lower rates and longer maturities would be offered to middle-income citizens who want to buy a new home.

Nebati told a news conference that mortgage loans worth up to 5 million lira ($266,823) will have a maturity of up to 15 years, while interest rates will start at 0.69 percent.

“We have prepared the ‘my new home’ program for middle-income citizens, with advantageous rates, three years of support from the Ministry of Finance in payments and a payment plan based on household income,” Nebati said.

Loans with favorable rates will be extended to new homes, before, during or after construction, Nebati also said.

Developers who commit to building homes will also have access to financing of about 25 billion Turkish lira, backed by the credit guarantee fund, Nebati added.

Ahead of Tayyip Erdogan’s disputed presidential election in mid-2023, the Turkish government has pressed ahead with a policy of fiscal and monetary stimulus that includes wage increases, retirement benefits, social benefits, and support for energy and agriculture.