Rising inflation has made accessing loans more difficult, and housing loans have been affected as well. According to expectations, the government plans to introduce low-interest loan support for first-time homebuyers through state banks once Parliament reconvenes.
A claim published in Sabah newspaper suggests that the campaign will offer interest rates around 1.20% for up to 120 months.
Details of the Housing Loan Campaign
Work is ongoing to design a suitable lending framework for the housing campaign, which will prioritize first-time buyers. Reports indicate that the initiative is being developed jointly by the Treasury and Finance Ministry and the Banking Regulation and Supervision Agency, with proposals including terms of up to 180 months and interest rates near 1.20%.
When Will the Housing Loan Campaign Start?
According to Sabah, the low-interest loan support for first-time buyers—administered through public banks—is expected to launch in October when Parliament reopens.
Targeting middle- and lower-income households, the campaign aims to make homeownership possible with payments comparable to rent. Alongside new social housing projects, the program seeks to broaden access to housing for lower-income citizens.
Which Properties Qualify for the Subsidized Loans?
Priority will be given to first-time buyers, and eligible properties in the campaign are expected to meet certain standards and fall within an affordable price range. New development projects are intended to expand housing access for middle- and low-income households.
What Are the Interest Terms in the New Campaign?
The proposed low-interest loan campaign for first homes is reported to offer a 1.2% interest rate and a 180-month term. By reducing the interest burden by an estimated 70%, the program aims to enable lower- and middle-income families to become homeowners with payments similar to rent.
Currently, banks charge an average monthly interest rate of about 3.23% on housing loans. Under that rate, a 2 million TL loan over 180 months would result in a monthly payment of 64,812 TL and total payments of approximately 11,666,000 TL, generating an interest burden of about 9,666,000 TL for borrowers.
If the interest rate is reduced to 1.2%, the monthly payment on a 2 million TL loan would drop to 27,174 TL, the total repayment would be about 4,891,401 TL, and the interest portion would fall to roughly 2,891,401 TL.
| Loan Amount | Term | Interest | Monthly Payment | Total Repayment |
| 500,000 TL | 180 Months | 1.20% | 6,793.61 TL | 1,222,850 TL |
| 1,000,000 TL | 180 Months | 1.20% | 13,587.23 TL | 2,445,700 TL |
| 1,500,000 TL | 180 Months | 1.20% | 20,380.84 TL | 3,668,550 TL |
| 2,000,000 TL | 180 Months | 1.20% | 27,174.45 TL | 4,891,401 TL |