Government-ordered interest rate reduction

Following Prime-Minister Binali Yıldırım's announcement in recent days that he would start a campaign to breathe life into the residential property sector and eliminate stocks, the first move has come from Ziraat Bank.

Ziraat Bank has announced a reduction in the interest rate on loans for homes valued up to 500,000 lira to 0.98%.

Home loan interest rates were at the level of 1.23% at Ziraat Bank.

Following Ziraat Bank, the other publicly owned banks are also expected to reduce their interest rates to similar levels.

It was stated in the announcement made by the bank:

“In the residential property market, Ziraat Bank has, by constantly growing its market share thanks to the strong growth performance it has exhibited especially in the past three years, attained the level of around 25% in the first quarter of 2018.

Nearly half the growth that took place in 2016 and 2017 in the residential property market worth some 200 billion lira was accomplished thanks to Ziraat Bank and a continuation of the same trend was witnessed in the first quarter of 2018.

Ziraat Bank, which looks with hope towards the future and which always prioritises the country’s balance sheet over its own balance sheet in the interest of a stronger Turkish economy, has today taken a further pioneering step and, as of 11.05.2018, has reduced the interest rate for maturity dates of up to ten years on loans for homes valued up to 500,000 lira and set the interest rate at a monthly 0.98%.”

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