5Upper IntermediateBusinessBusiness

Turkey Plans Low-Interest Mortgage for First-Time Buyers

Turkey is preparing a government-backed housing loan called 'İlk Evim' (My First Home) with a 1.20% interest rate. The program targets low- and middle-income citizens who have never owned a home. If approved, it could reshape the country's housing market in 2026.

2 min readLevel 5April 30, 2026

By Flalingo Editorial Team

Vocabulary

Study these words before reading the article. Click the audio button to hear pronunciation.

initiative

/ɪˈnɪʃətɪv/

noun

A new plan or action taken to solve a problem or achieve a goal

“The government launched an initiative to reduce unemployment among young people.”

competitive

/kəmˈpetɪtɪv/

adjective

As good as or better than others; offering favorable conditions compared to alternatives

“The bank offered competitive interest rates to attract more customers.”

subsidized

/ˈsʌbsɪdaɪzd/

adjective

Partly paid for by the government or an organization to reduce the cost for people

“Many low-income families depend on subsidized housing programs to afford rent.”

eligible

/ˈelɪdʒəbl/

adjective

Meeting the requirements or conditions needed to receive or do something

“Only employees who have worked for five years are eligible for the bonus.”

stimulate

/ˈstɪmjʊleɪt/

verb

To encourage growth or activity in something, especially in the economy

“Lower taxes can stimulate consumer spending and help businesses grow.”

repayment

/rɪˈpeɪmənt/

noun

The act of paying back money that was borrowed, usually in regular amounts

“The repayment schedule requires monthly payments over a period of ten years.”

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Article

Click on any underlined word to see its definition. Highlighted words are from the vocabulary section.

Turkey is developing a major housing initiative to help first-time buyers. The government-backed program, known as 'İlk Evim,' offers a 1.20% fixed interest rate. Current market mortgage rates stand at around 3%, making this rate highly competitive. The campaign is part of Turkey's Medium-Term Economic Program. It aims to make homeownership accessible for low- and middle-income citizens.

State-owned banks will manage the loan distribution under this scheme. Ziraat Bankası, VakıfBank, and Halkbank are expected to participate. Borrowers could receive repayment terms of up to 180 months, or 15 years. For a one million Turkish lira loan, the monthly payment would be approximately 13,587 lira. The total repayment amount would reach around 2.45 million lira over the full term.

Only citizens purchasing their first home would qualify for this program. Applicants must not have any property registered under their name. The Treasury and Finance Ministry, along with banking regulators, is finalizing technical details. A legislative proposal is expected to reach Parliament by May or June 2026. Both new and pre-owned properties would be eligible under the campaign.

Analysts say this initiative could stimulate Turkey's construction sector significantly. Rising housing prices and high interest rates have discouraged many potential buyers recently. If the government invested in subsidized lending, millions of families would benefit directly. The program also aims to increase housing supply and maintain price stability. Market participants are watching closely for the official announcement from the government.

Comprehension Quiz

Test your understanding of the article with these multiple-choice questions.

1
What is the fixed interest rate proposed for the 'İlk Evim' loan?
2
What is the maximum repayment period for the proposed loan?
3
Who is the target audience for this housing loan program?
4
When is the legislative proposal expected to reach Parliament?
5
What is the approximate monthly payment for a one million lira loan under this program?

Discussion

Answer these comprehension questions about the article.

1
What is the proposed interest rate for Turkey's 'İlk Evim' housing loan program?
2
Which banks are expected to offer the low-interest mortgage to first-time buyers?
3
How long is the maximum repayment period under the proposed loan scheme?
4
Why does the article describe the 1.20% rate as highly competitive in Turkey's current market?
5
What conditions must applicants meet to qualify for the 'İlk Evim' housing loan?

Further Discussion

Share your opinions on these open-ended questions.

1
If you were a policy maker, how would you balance subsidized loans with the risk of inflation?
2
Do you think government-backed mortgage programs are an effective way to address housing crises?
3
How might a low-interest loan campaign affect real estate prices in the long term?
4
Would you take a 15-year mortgage at a low fixed rate, or would you prefer a shorter term?
5
What other strategies could governments use to make housing more affordable for young professionals?