Apr 05 2017, 3:42 PMApr 06 2017, 1:21 PMApril 05 2017, 3:42 PMApril 06 2017, 1:21 PM
Turkey 's banks are issuing mortgages at a loss since President Erdogan called on commercial banks last August to slash their mortgage loan rates in an effort to revive the housing market and spur growth . However , once the loans recover , they have seen borrowing costs rise considerably , which they are not passing on to home buyers . The rates the banks have to pay for three - month periods – a major source of revenue – have risen to 11.3 % , which is about 19 basis points higher than the average rate they charge on mortgages .