Turkey announces cheaper mortgages for mid-income Turks

Mortgages with lower rates and longer maturities will be offered to middle income Turks looking to buy new housing, Turkish Finance Minister Nureddin Nebati said on Wednesday.

Nebati told a news conference the mortgage loans with amount up to 5 million lira ($266,823), will have up to 15 years maturity and rates will start from 0.69%.

“We prepared ‘my new home program’ for middle income citizens with advantegous rates, three-year finance ministry support in payments and a household income-based payment plan,” Nebati said.

The loans with favourable rates will be extended to new housing, before, during or after construction, Nebati also said.

Contractors that promise to build housing will also have credit guarantee fund-backed access to financing of some 25 billion Turkish lira, Nebati added.

Ahead of tight elections for President Tayyip Erdogan in mid-2023, the government has pressed on with a policy of fiscal and monetary stimulus including wage hikes, retirement benefits, social aid, energy and agriculture support. [Reuters]