Ankara, Jan 5 (IANS): Turkey has introduced a cheap mortgage package for middle-income first-time homebuyers, as the government is trying to address problems in the real estate market of the country.

The housing campaign will offer mortgages with lower rates and longer maturities to middle-income Turkish citizens looking to buy their first houses, Treasury and Finance Minister Nureddin Nebati said at a press conference.

The Minister said that loans up to 5 million Liras ($266,808) will have up to 15 years of maturity with rates starting from 0.69 per cent, reports Xinhua news agency.

"We prepared this program for middle-income citizens with advantageous rates, three-year finance ministry support in payments, and a household income-based payment plan," Nebati said.

The campaign will only be valid for new residences, before, during, or after their construction.

The citizens will benefit from the initiative if they do not own any house and cannot sell the new housing for five years.

Contractors that promise to build new housing will be able to apply a credit guarantee fund-backed financing, Nebati added.

The campaign was announced amid a crisis in Turkey's housing market where the prices and rents hiked above the accessible level, especially for middle and low-income Turks.