IV. First Home Mortgage 2026: Terms and Changes
Short answer: The IV. First Home mortgage is a TL-denominated loan package opened for applications by the Central Bank of Northern Cyprus (TRNC) on 23 February 2026 for TRNC citizens buying a home for the first time. It can be used for up to 80% of the property value, up to 3,300,000 TL per person, with a maturity of up to 120 months; the interest rate remains fixed throughout the loan term. Compared with the III. package in 2025, the loan limit increased by 50%, while the household income threshold rose from 250,000 TL to 300,000 TL.
This article has been prepared for citizens planning to buy their first home in the TRNC, homeowners selling property to these buyers, and readers following the direction of local housing demand. Foreign and Turkish citizen buyers cannot benefit from this package; we explained financing options for them separately in our article on mortgages and financing in Cyprus. Here, we summarize the package rules based on the official text and discuss its possible effects on the market.
What is the IV. First Home mortgage?
First Home packages are supported housing loans provided by banks within the procedures and principles set by the Central Bank, aimed at real persons who will become homeowners for the first time. According to the “Procedures and Principles Regarding the IV. First Home Mortgage Package” published by the Central Bank, the purpose of the loan is to finance home purchases by people who will buy a home for the first time, and the application start date is 23 February 2026.
The key features of the package are as follows:
- Currency: Turkish lira.
- Limit: A maximum of 3,300,000 TL per person and a maximum of 80% of the value of the property to be purchased.
- Maturity: Equal monthly instalments, up to 120 months.
- Interest: It is determined by adding 6 points to the interest rate applied to TL legal reserves held with the Central Bank on the date the loan is disbursed, and remains fixed throughout the term. In the text, the rate as of the publication date is stated as 1.75% monthly and 21% annually.
- Costs: Excluding payments made to third parties, banks do not charge any commission or fee other than interest; no stamp duty is charged for the loan.
- Title deed exemption: For homes purchased with this loan, the buyer is exempt from taxes, duties and fees payable at the land registry for sale and mortgage transactions.
You can access the full official text from the procedures and principles document on the TRNC Central Bank website.
Differences between the III. package and the IV. package
The basic structure of the package remained the same as the III. package in 2025; the changed parts are the limit, income threshold and scope. The table below compares the Central Bank’s two procedures and principles texts:
| Subject | III. package (2025) | IV. package (2026) |
|---|---|---|
| Application start | 12 February 2025 | 23 February 2026 |
| Maximum loan amount | 2,200,000 TL | 3,300,000 TL |
| Ratio to property value | Maximum 80% | Maximum 80% |
| Household income threshold (monthly net) | 250,000 TL | 300,000 TL |
| Maturity | Up to 120 months | Up to 120 months |
| Interest | Legal reserve interest + 6 points, fixed | Legal reserve interest + 6 points, fixed |
| Retirees | Not separately listed in the text | Those retired from social insurance or the pension fund are included |
| Those who benefited from a previous package | Excluding those who benefited from the I. or II. package | Excluding those who benefited from the I., II. or III. package |
The most notable change is the increase in the loan ceiling from 2.2 million TL to 3.3 million TL. This increase can be read as reflecting the rise in TL-denominated housing costs in the package. According to Statistical Institute data, official construction unit costs increased by 27% for house-type buildings and 33% for apartment buildings in 2025; annual inflation was also announced as 35.02% in September 2026.
Who can benefit, and who cannot?
According to the procedures and principles, the following conditions must all be met to benefit from the loan:
- Citizenship and residence: Being a TRNC citizen over the age of 18 and residing in the TRNC.
- Home ownership: Having no house registered in the TRNC in the name of the applicant, spouse or children under 18, and not having transferred a residential property registered in the applicant’s name after 24 July 2022.
- Insurance status: Being actively registered with Social Insurance, the public pension fund or the South Cyprus social insurance system and having paid premiums for the last 6 months before the application, or being retired from these institutions.
- Income: Household income must not exceed 300,000 TL net per month.
- Previous packages: None of the applicant, spouse or children under 18 must have benefited from the I., II. or III. First Home package.
Those with overdue debts, those subject to a cheque ban, and those purchasing the property from a first- or second-degree blood relative or relative by marriage are excluded. The loan is paid directly to the seller by account transfer or bank cheque; no cash payment is made. The property purchased with the loan cannot be disposed of before the debt is closed.
Documents requested by banks include a search certificate from the Land Registry and Cadastre Department, the property’s title deed (koçan) or, if there is no title deed (koçan), a sales contract registered with the land registry, a real estate valuation report and a home insurance policy that also covers earthquake risk. We explained how to check whether there is a mortgage or attachment on the title registry in our TRNC title deed search article; for earthquake coverage, you can also see our article on earthquake insurance in Cyprus.
Sample instalment calculation
Based on the monthly interest rate of 1.75% and 120-month maturity stated in the document as of the publication date, our sample calculations are as follows. Since the interest will be determined according to the legal reserve rate on the date you use the loan, the actual instalment may differ:
| Loan amount | Monthly instalment (approx.) | Total repayment over 120 months | Total interest |
|---|---|---|---|
| 2,000,000 TL | 39,986 TL | 4,798,360 TL | 2,798,360 TL |
| 2,200,000 TL | 43,985 TL | 5,278,196 TL | 3,078,196 TL |
| 3,300,000 TL | 65,977 TL | 7,917,294 TL | 4,617,294 TL |
To benefit from the full limit, the value of the property in the valuation report must be at least 4,125,000 TL (3,300,000 TL is 80% of this value). For comparison: the net minimum wage in the TRNC is 61,677 TL per month as of 1 July 2026. In other words, the approximate 66,000 TL instalment generated by the maximum loan remains above a single minimum wage; in practice, the package appears more accessible for dual-income households.
This is where the importance of the valuation report becomes clear. Since the loan amount is limited according to 80% of the value of the property to be purchased, not the sale price, if the value in the valuation report is below the sale price, the amount the buyer must pay upfront increases. For example, if the value of an apartment with a sale price of 4,000,000 TL is determined as 3,500,000 TL in the report, the usable loan will be limited to 2,800,000 TL, and the buyer will need to cover the 1,200,000 TL difference from their own resources. Therefore, starting the bank’s valuation process before signing the contract prevents surprises. It is also useful to ask during the application which method the banks use in valuation and how long it takes for the report to be issued.
The title deed tax and fee exemption provided by the package should also be taken into account. We collected the items paid by the buyer in a standard purchase in our article on taxes and costs when buying a home in the TRNC; before the transaction, confirm with your bank and lawyer which of these items fall under the exemption in a purchase within the scope of First Home.
Possible effects on the housing market
First Home packages are among the most important support tools for local demand in the TRNC. We can summarize the potential impact of the IV. package on the market under a few headings:
- Demand for TL-priced housing: Since the loan is TL-denominated and limited, its impact may be more evident in apartments and second-hand homes valued in the 4–5 million TL range.
- Limited overlap with foreign-currency-priced projects: Its impact may remain limited in projects priced in sterling and aimed at foreign buyers, because only TRNC citizens can use the loan.
- Priority for titled properties: Banks’ requirement for a title deed (koçan) or a sales contract registered with the land registry makes properties with ready documentation more attractive for this buyer group.
- Fast collection for the seller: Payment made directly to the seller means collection security for the seller.
These effects are not results measured with official data, but assessments arising from the structure of the package. If an announcement is made on how much the package has been used, the picture will be easier to read.
Frequently asked questions
When did the IV. First Home mortgage start?
According to the procedures and principles text of the TRNC Central Bank, the application start date for the IV. First Home Mortgage Package is 23 February 2026. Applications are made to banks. Before applying, confirm with your bank whether the package is still open and the remaining resources.
What is the interest rate of the First Home loan?
The interest is determined by adding 6 points to the rate applied to TL legal reserves held with the Central Bank on the date the loan is disbursed, and remains fixed throughout the term. In the procedures and principles text, the rate as of the publication date is written as 1.75% monthly and 21% annually. The rate on the date of use may differ.
Can Turkish citizens benefit from the First Home loan?
No. According to the procedures and principles, the loan is intended for TRNC citizens residing in the TRNC and meeting certain social security conditions. Turkish citizens or other foreign buyers cannot benefit from this package; for them, banks’ general mortgage conditions or developer instalments come into consideration.
Can I sell the home I bought with a First Home loan?
No, as long as the loan debt has not been closed. The procedures and principles state that the property purchased with the loan cannot be disposed of until the debt is closed, and if it is determined that the loan was used outside its intended purpose, the support provided will be recovered with a late payment penalty.
Can I apply for the IV. package if I benefited from the III. package?
No. For the IV. package, you, your spouse and your children under 18 must not have benefited from the I., II. or III. First Home packages. It is also a condition that you must not have transferred a residential property registered in your name after 24 July 2022.
If you would like to discuss whether a property with ready documentation is suitable for First Home conditions, you can contact the Akol Global team; let’s review the title deed (koçan) and contract status together.
This article is for informational purposes only; it does not replace legal, tax or financial advice. Last updated: October 2026.