Who Will Benefit from the Fresh Housing Credit Program?
The program is expected to benefit first-time homebuyers in the lower and middle income brackets.
-The Financial Stability Committee is working on a mortgage-like model
-The system will provide long-term, low-interest and affordable installment payments
-the BDDK will reduce the risk weight in housing loans
Turkey’s Financial Stability Committee is developing a new housing credit program aimed at making homeownership more accessible for first-time buyers, particularly those in lower and middle income groups. The initiative, announced on February 16, 2026, seeks to address rising property prices and increasingly challenging conditions for prospective homeowners.
The program will operate under a mortgage-like model, offering long-term financing with low interest rates and manageable installment payments. This move comes as the Turkish housing market faces significant headwinds, with affordability becoming a major concern for many citizens.
In conjunction with the new credit program, the Banking Regulation and Supervision Agency (BDDK) is expected to reduce the risk weight assigned to housing loans. This adjustment is intended to encourage banks to extend more credit to first-time homebuyers, further easing access to financing. The decision highlights the government’s commitment to supporting the housing sector and promoting homeownership.
Details regarding the specific eligibility criteria and application process for the program are still forthcoming. However, officials have indicated that the focus will be on providing assistance to those who have not previously owned property and fall within defined income brackets. The program is expected to be integrated into the Medium Term Program and announced alongside banking regulations in 2026.
The development of this program underscores the Turkish government’s proactive approach to addressing economic challenges and supporting its citizens’ financial well-being. The initiative is anticipated to have a positive impact on the housing market, potentially stimulating demand and providing a much-needed boost to the construction sector.
