Housing Loans in 2026: Interest Rates and Accurate Calculation

When comparing housing loans, most buyers make a decision by looking solely at the monthly interest rate advertised by banks. However, there can be a difference of hundreds of thousands of liras in the total cost of loans offered by two different banks with the exact same interest rate.

Items beyond the interest rate

• File / allocation fee: 0.5% of the loan amount (legal upper limit)
• Appraisal (valuation) fee: in the range of 6,000 – 12,000 ₺
• DASK compulsory earthquake insurance: based on the m² and construction type of the property
• Home and life insurance: mandatory or optional depending on the bank
• Mortgage establishment and title deed registry procedures

Although these items may seem small individually, their total can exceed 80,000 ₺ on a 5 million ₺ loan. Request a written total cost table from the bank before making your decision.

How do you calculate the monthly installment?

In equal installment (annuity) loans, the monthly payment is calculated by multiplying the loan amount by the coefficient determined based on the monthly interest rate and the number of maturities. In practice, using the banks' calculation tools is sufficient; the important thing is to make comparisons using the same maturity and the same amount.

Extending the maturity lowers the installment, but significantly increases the total payment. Choosing 180 months instead of 120 months can almost double the total interest you will pay.

Early closure and restructuring

In accordance with regulations, banks can apply a penalty of a maximum of 2% of the remaining principal for early closure (1% if less than 36 months remain until maturity). If you have the possibility of early prepayment, confirm this rate prior to the contract.

How much loan can you withdraw?

Banks generally approve installments that do not exceed 50% of your net monthly income. Additionally, loans of up to 80% of the property value can be issued; this ratio decreases gradually for residences priced above 5 million ₺.

Once you clarify your budget, our consultants can filter the portfolio for you to match your specified installment range.