23.12.2025 17:15
In the housing loans used by those looking to purchase a home, the lowest level in 28 months was observed. According to Central Bank data, the average interest rate applied to housing loans opened by banks fell to 37.63%, marking the lowest level recorded since September 1, 2023.
The average interest rate applied to housing loans opened by banks fell to 37.63% in the week of December 12, the lowest level in 28 months. While the outputs of the disinflation program implemented by the economic management are reflected in the data, inflation, which rose to 71.6% in June 2024, dropped to 31.1% in November.
THE CENTRAL BANK'S MOVE REFLECTED IN HOUSING LOANS In parallel with this decline, the Central Bank of the Republic of Turkey (CBRT), which gradually lowered the one-week repo auction interest rate, the policy rate, by 150 basis points to 38%. The reductions made by the CBRT were also reflected in the interest rates of housing loans offered by banks.
INTEREST RATE ON HOUSING LOANS AT ITS LOWEST IN 28 MONTHS According to Central Bank data, the average interest rate applied to housing loans opened by banks fell to 37.63% in the week of December 12, marking the lowest level in 28 months. The previous low was 35.69% on September 1, 2023. The highest rate was 45.14% in the week of April 5, 2024.
MONTHLY INTEREST RATE DROPPED BELOW 2.5% While the lowest housing loan interest rate in banks was 3.05% in the middle of last year, this figure has decreased to 2.49%. Thus, the monthly payment for a 1 million lira loan with a 10-year term dropped from 31,352 lira to 26,273 lira. The total amount paid also decreased by 609,000 lira to 3,153,000 lira.
"BANKS WANT TO REOPEN HOUSING LOAN VOLUME IN A CONTROLLED MANNER" Prof. Dr. Ali Hepşen, a faculty member at Istanbul University’s Faculty of Business, stated in a statement to AA that the weighted average interest rate applied to housing loans opened by banks has decreased by approximately 7.5 points since April 5, 2024, and continued: "There are several dynamics behind this decline. The first is the banks' desire to reopen the housing loan volume in a controlled manner. Since the autumn of 2023, housing loans have almost turned into a 'showcase product.' There was a price, but no customers. Demand had been severely suppressed. The second factor is the softening of future expectations as the policy interest rate approaches its peak. When banks price loans, they do not only look at the current policy rate. They also price the interest path for the next 12-24 months. It seems that a perception of 'higher is difficult' has emerged here." Hepşen noted that this rate is not a level of interest available to everyone, stating that customers with low risk and high down payments benefit more from it.
"RATES ARE STILL HIGH" Prof. Dr. Hepşen stated that this rate is still high, explaining that the decline will not create a broad-based demand explosion but provides partial relief. He mentioned that during the peak period of interest rates, banks approached with the mentality of "If I give a housing loan, I either earn a lot or I don't give it at all," and added, "Today, however, the approach seems to have changed a bit. The credit faucet is not fully open, but it is not completely closed either. The decrease in interest rates is a sign of this strategic change." Hepşen remarked that it cannot be said that the credit buyer has definitively returned with the current rates, stating, "However, a buyer profile that is reconsidering credit is emerging. It is moving from the point of 'impossible' to the point of 'with a small loan.' I think this is significant in terms of market psychology."
"THE RATE THAT WILL HAVE A SERIOUS IMPACT ON SALES IS 1% LEVEL" Hakan Akdoğan, the President of the All Entrepreneur Real Estate Consultants Association (TÜGEM), also noted that the decline in loans has started to reflect on mortgaged sales, stating, "Although mortgaged sales increased by 53.5% in November 2025, the share of credit sales in total is still not at the desired level. It is currently at 13.3%, but it needs to be around 30%. The reason for this is that credit rates have not yet reached the desired levels."
Akdoğan stated that those who do not want to pay high rents are choosing to become homeowners through loans despite the current rates, saying, "Currently, rates are still above 2.5%. However, the rate that will significantly impact consumer expectations and sales is the 1% level. The number of people applying for the social housing campaign shows that millions of people have a demand for housing. Therefore, loans need to decrease faster and come down further."