[sukruh]

But that scenario also creates winners and losers, because a loan with an interest rate lower than inflation is wealth transfer from the creditor to the debtor. The privileged, who can access these loans get richer, while others lose access to the housing market due to ever increasing prices caused by these loans.

This wouldn't be a huge problem if it was a mistake by freely operating private creditors, who theoretically, would realise their error and try not to issue long term loans fixed at a rate lower than inflation. One could see this as a "bet" by the creditors that the inflation rate will decrease in the future and they'd make a profit. The problem is when state-backed creditors are forced to issue low-rate loans as a government policy of homeownership. There, a country's tax base ends up funding people who can access these loans, while everyone else ends up further from owning a home. This is what happened in Turkey in 2020.