Turkey Housing Loan

Property in Turkey For Sale

The level at which the mortgage interest rate is located is the most important indicator that affects the decision to buy a home... at this point, it pays interest as much as the main money that draws a loan with a maturity of 10 years.

HOUSING SECTOR IS ONE OF MOST AFFECTED BY THE RISE IN LOAN RATES

January-December mortgage house sales increased by 72.4 percent to 573 thousand 337 with the interest campaign launched under the leadership of state banks in 2020.

But as interest rates on loans rose from the end of the year, the number of home areas using loans from banks began to decline.

ONLY 15 OUT OF 100 HOMES

According to the latest data released by the Turkish Statistical Institute, mortgage home sales across the country in January 2021 decreased by 74.6 percent compared to the same month of the previous year, leaving 10,732. The share of mortgage sales among total home sales fell to 15.2 percent.

Due to high interest rates, citizens prefer to borrow bonds or buy in advance to construction firms rather than take out loans. In this way, only 15 out of every 100 houses sold were taken out on loan.

MORTGAGE-BACKED HOME SALES FELL 77% IN FIRST-HAND HOMES AND 73% IN SECOND-HAND HOMES

Home loan interest rates, which have recently risen again, are at an average level of 1.55 percent, while a public bank currently gives the most appropriate monthly interest rate at 1.34 percent. Interest rates at private banks are up to 1.90 per cent.

A family that has an accumulation of 250 thousand TL and wants to buy an apartment worth 500 thousand TL, 250 thousand TL if the mortgage loan is used, the total payment to the bank varies between 552 thousand TL and 777 thousand TL according to the monthly interest rate.