Demand for home purchases has risen 50 percent in Turkey after announcing massive low interest rate loan packages in June this year to help stimulate the recovery of the economy after the Covid 19 pandemic.

Banks said that mortgages for both new homes and condominiums used within the “housing package” would be due up to 15 years, with interest rates as low as 0.64 percent and time limits of 12 months. The low repayment rate for the low shares, which starts at 10 percent, will be applied to the use of the financing.

Ziraat Bank, VakıfBank and Halkbank, which are the three largest lenders in Turkey announced along with two participatory banks; Ziraat Katılım and Vakıf Katılım last week offered four loan packages that include mortgages for new homes, loans to buy cars, locally manufactured goods, and holiday expenses, with annual interest rates below inflation.

In order to ensure that the largest number of clients benefit from this opportunity, the amount of financing that can be provided to each customer will be limited, and financing of 750,000 TL (about 110,000 USD) will be made available for housing in three main cities; Istanbul, Ankara and Izmir, while a maximum amount of 500 thousand Turkish liras will be placed for other cities.

For his part, the head of the Istanbul Chamber of Real Estate Commissioners and Consultants, Istanbul Nizamuddin, said that the demand for homes increased significantly from middle-income families in particular, after falling mortgage rates.

Residential property sales in Turkey increased by 8.9 percent between January and April, lifted by mortgage sales, according to the Turkish Statistical Institute “TurkStat”.