Türkiye’s banking regulator has updated mortgage lending rules. According to industry representatives, this step is aimed at increasing housing affordability for the middle class and reviving demand in the lower- and mid-priced property segments.
The Banking Regulation and Supervision Agency (BDDK) announced a revision of loan-to-value (LTV) ratios for housing loans. The distinction between newly built and second-hand homes has now been removed, and maximum borrowing limits have been increased, especially for properties priced up to TL 7 million (approximately $160,000).
The previous restriction, under which buyers of second-hand homes could qualify for a smaller mortgage share compared to new properties, has also been eliminated.
Market participants describe the decision as a move toward easing conditions amid high property prices and expensive borrowing costs.
Greater Opportunities for Second-Hand Home Purchases
Under the new rules, the share of borrowed funds for purchasing second-hand homes has been significantly increased.
Previously, for properties priced between TL 2 million and TL 5 million, the maximum loan amount was 60% of the value. This ratio has now been raised to 90%.
Makbule Yönel Maya, general manager of TSKB Real Estate Valuation, noted that for a long time rising prices and high mortgage rates had made home ownership extremely difficult.
According to her, the new measures are primarily aimed at facilitating access to housing for the middle-income group and signal the beginning of gradual easing.
Previously, obtaining a mortgage for second-hand homes priced above TL 10 million was almost impossible. Now buyers will be able to finance up to 50% of the value for properties priced between TL 10 million and TL 20 million.
Stricter Conditions for the Premium Segment
At the same time, the regulator tightened rules for high-end real estate.
For newly built homes valued at TL 20 million and above, the maximum mortgage ratio has been reduced fr om 60% to 40%.
The BDDK stated that the changes are intended to ensure more efficient allocation of financial resources, prioritizing lower-income groups.
Mortgage Sales Remain Subdued
Since mid-2023, rising interest rates, tighter regulations, and policies aimed at cooling domestic demand have led to a significant decline in the share of mortgage-backed sales.
According to TurkStat data, by the end of 2025 mortgage sales accounted for 14% of total housing transactions, compared to 19% at the end of 2022.
Everything Depends on Interest Rates
According to Maya, easing loan limits could support demand, especially in large metropolitan areas wh ere housing affordability remains a major issue.
Currently, housing price growth is below inflation, while rental rates remain high. In such conditions, improved lending terms may encourage buyers who prefer purchasing a home instead of continuing to rent.
However, mortgage interest rates remain the key factor.
In January, the Central Bank of Türkiye reduced its policy rate by 100 basis points to 37%, continuing its easing cycle. If this leads to lower lending rates, the impact of the new rules will be significantly stronger.
When interest rates were lower in the past, mortgage sales accounted for around 30% of total housing transactions. Today their share is 14% and, according to experts, at best may rise to around 20%, as borrowing costs remain high.
The historical peak of mortgage sales was recorded in 2013, when they reached 40% of total transactions.
Savings May Shift into Real Estate
Average monthly interest rates on 10-year housing loans currently range between 2.69% and 2.79%.
Experts believe that gains from gold and bank deposits may partially flow into the property market. Amid relatively stable prices, many households may prefer to lock in profits and invest in housing.
At the same time, the rule remains in force that reduces mortgage limits by 75% for borrowers who already own at least one property (personally, through a spouse, or via minor children).
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