How to Calculate Turkish Housing Loan Payments and Compare Bank Rates

Turkish banks advertise housing loans with a monthly interest rate, for example 2.69% or 3.19%, rather than the annual rate used in many other countries. Working out what that rate actually costs requires turning it into a monthly installment and a total repayment figure, then comparing it across banks and against the market average.

Step-by-step: calculating your real monthly installment

1. Fix your loan amount and term. Current comparisons published by banks and finance sites use a 120-month (10-year) term, the maximum most Turkish banks offer for housing loans, according to the bank tables cited below.
2. Collect each bank's current monthly rate for that exact loan amount and term, since rates are tiered: doviz.com's October 3, 2026 comparison used a 1,000,000 TL loan, while a separate October 1, 2026 comparison of participation banks by yozgatcamlik.com and turkiyegazetesi.com.tr used 2.5 million TL — a different loan size can carry a different quoted rate.
3. Convert the monthly rate into an installment using the standard loan-amortization formula: monthly payment = P × r × (1+r)^n ÷ [(1+r)^n − 1], where P is the principal, r is the monthly rate as a decimal, and n is the number of months.
4. Check your result against a published example at the same rate level. At a 2.69% monthly rate on a 1,000,000 TL loan over 120 months, doviz.com lists a 28,061 TL monthly payment; an earlier comparison by bigpara.hurriyet.com.tr found 28,060 TL for the same rate and term, confirming the calculation.
5. Multiply the monthly installment by the number of months to get the total repayment, then compare that figure — not just the headline rate — across banks.
6. Add the non-interest costs covered further below (file fee, appraisal fee, insurance) before deciding which offer is cheapest overall.

Bank-by-bank comparison: current rates for a 1,000,000 TL, 120-month loan

According to doviz.com's comparison dated October 3, 2026, monthly housing-loan rates for a 1,000,000 TL loan over 120 months ranged from 2.69% to 3.73% depending on the bank.

A separate October 1, 2026 comparison of participation (interest-free) banks, published by both yozgatcamlik.com and turkiyegazetesi.com.tr, used a larger, 2.5 million TL loan over the same 120-month term. There, Türkiye Finans quoted the lowest rate at 2.88%, followed by Albaraka at 2.90%, and Kuveyt Türk, Vakıf Katılım and Dünya Katılım all at 2.99%. The two reports note that at Türkiye Finans's rate, the monthly installment comes to about 74,768 TL and the total repayment to roughly 8,936,096 TL — about 3.6 times the original loan amount.

The two sets of figures are not directly comparable rate-for-rate because the loan amounts and dates differ — Albaraka itself was quoted at 2.75% for a 1 million TL loan on October 3 and at 2.90% for a 2.5 million TL loan on October 1 — which shows that a bank's published monthly rate can shift with both the loan size and the day it is quoted.

Why advertised rates differ from the market-wide average

The rates banks advertise for a standard loan amount are not the same as the actual average rate paid across all housing loans in the system. According to Central Bank (TCMB) weekly data reported by dokuzeylul.com, the sector-wide weighted average annual rate on housing loans was 41.89% (equivalent to a monthly rate of 3.49%) for the week of August 21–28, 2026, down slightly from 42.04% annual (3.50% monthly) a week earlier. The outlet attributed the small decline to the Central Bank resuming one-week repo auctions at 37%, which had a knock-on effect on banks' lending rates. This weighted average, which reflects loans actually disbursed across all customer profiles, sits well above the lowest campaign-style rates banks publish for standard loan sizes, underlining that an advertised 'lowest rate' is not automatically the rate every applicant will receive.

Extra costs beyond the interest rate

The quoted interest rate does not capture the full cost of a housing loan. According to hesap.com, the following additional items typically apply in Turkey:

• A file/allocation fee (dosya ücreti), capped at 0.5% (five per thousand) of the loan amount.
• An appraisal/expertise fee (ekspertiz ücreti), paid by the borrower when applying; hesap.com cites a 2026 average of about 21,004 TL, with typical examples ranging from roughly 6,000 TL to 20,000 TL depending on the property.
• A mortgage registration fee at the local land registry, in the range of 500–3,000 TL; hesap.com notes some banks also charge a separate mortgage-removal fee (ipotek fek ücreti) once the loan is fully repaid and the lien is lifted.
• Compulsory earthquake insurance (DASK), plus home insurance and sometimes life insurance that banks commonly require as a condition of the loan.

Both the yozgatcamlik.com and turkiyegazetesi.com.tr reports note that the final rate a specific applicant receives can differ from the published figure, depending on the customer's financial profile, the property being financed, and any bank campaign in effect at the time of application.