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Crowdfunding Now Rivals Bank Mortgages in Turkish Housing Sales

  • Mortgage rate surge triggers interest in unregulated financing
  • ‘There’s no obstacle to misconduct,’ an executive warns
General Views Of The Turkish Capital
Photographer: Kerem Uzel/Bloomberg
Updated on

Unregulated Turkish crowdfunders say they’re grabbing a bigger share of the housing market as a surge in mortgage rates offered by traditional lenders prices out most potential homebuyers.

With rates at a 14-year high, “current financing conditions don’t serve low- and middle-income families,” Murat Ciftci, chairman of home and auto financing firm Birevim, said in an interview late last month. “As interest rates rose, people became more interested in our shared-savings system.”