Türkiye has relaxed its mortgage rules in a move aimed at making homeownership more accessible for middle-income households and reviving demand in the lower and mid-tier housing market. The Banking Regulation and Supervision Agency (BDDK) announced the changes over the weekend, updating loan-to-value (LTV) ratios and removing the long-standing distinction between new and second-hand homes.
Most significantly, buyers of second-hand homes now enjoy much higher borrowing limits. Previously, those purchasing properties priced between TL 2 million and TL 5 million could only borrow 60% of the value. Now, they can access up to 90%. For homes priced between TL 10 million and TL 20 million—once nearly impossible to finance—the new cap allows 50% financing.
Makbule Yönel Maya, General Manager of TSKB Real Estate Valuation, called the shift “a sign of easing.” She explained that high prices and elevated interest rates have made housing unattainable for many. “With this regulation, authorities are trying to make home ownership somewhat easier, especially for the middle-income group,” she said.
However, the relaxation does not apply across the board. In fact, the BDDK tightened mortgage limits for luxury properties. For newly built homes valued at TL 20 million or more, the maximum LTV dropped from 60% to 40%. This reflects the government’s goal of directing financial resources toward lower- and middle-income buyers rather than high-end investors.
The timing matters. Mortgage-backed home sales have slumped in recent years due to rising interest rates and policy efforts to cool domestic demand. According to TurkStat, mortgaged transactions fell to just 14% of total housing sales by end-2025—down from 19% in 2022 and far below the 40% peak in 2013.
Still, Maya believes the new rules could spark renewed interest—especially in big cities where renting remains costly. “House prices are currently rising below inflation,” she noted. “In this stable environment, better LTV ratios may encourage buyers to switch from renting to owning.”
That said, she stressed that success hinges on interest rates. The Central Bank of the Republic of Türkiye (CBRT) recently cut its policy rate to 37%, continuing its easing cycle. But average monthly rates on 10-year housing loans still hover around 2.69%–2.79%. “If these cuts translate into lower loan rates, the impact will be much stronger,” Maya said.
She estimates the mortgage share of housing sales could rise from 14% toward 20%—but not back to 30%, given persistently high borrowing costs.
Another factor is shifting household savings. With recent gains in gold and deposit returns, families may now channel those profits into real estate. “People want to own homes,” Maya said. “When housing prices lag inflation, property becomes an attractive store of value.”
One rule remains unchanged: borrowers who already own a home—personally, through a spouse, or via children under 18—still face a 75% reduction in eligible mortgage amounts.
In short, Türkiye’s updated mortgage rules signal a clear push to support middle-class homeownership. While challenges remain, the reforms mark a meaningful step toward a more inclusive housing market.
READ: Casa La Vista: Desert Residence by MEDEZA CDQ and VERTEBRAL
