1
What are current housing loan interest rates?
As of May 2026, housing loan interest rates vary widely depending on the promotions offered by banks and the loan type. Here's a summary of the current market picture:
Current Interest Rates (May 2026): Market rates generally range between 2.49% and 5.25%. However, special campaigns such as "My First Home" can change the picture considerably.
Lowest Rates: Some public and private banks (such as Halkbank and QNB) offer rates starting from 2.49%-2.59%.
Market Average: Interest rates at most banks are concentrated in the 2.70%-3.30% range.
Special Campaigns (1.20% Rate): Known publicly as the "My First Home" project, the low-interest housing loan expectation - or the 1.20% rate offered to those who meet certain conditions - remains the most sought-after option, though it is subject to specific criteria (being a first-time home buyer, a 180-month term, etc.).
Example Calculation: Assuming a loan of 2,000,000 TL at the general market average of 2.85%, over a 120-month (10-year) term the monthly installment is approximately 59,025 TL with a total repayment of about 7,083,000 TL. Under the 1.20% campaign rate over 180 months (15 years), the monthly installment is approximately 27,175 TL with a total repayment of about 4,891,400 TL.
Key points to know: Banks generally lend around 70%-90% of the property's appraised value, so a substantial down payment is essential. Interest rates have shown a gradual decline since the beginning of 2026, so following this trend can make a real difference if you're not in a rush. Beyond interest alone, extra costs such as file fees, life insurance, and home insurance can increase the total cost by an additional 1-2%.
Note: these figures reflect general market conditions at the time of writing and change frequently - please verify current rates directly with banks.