Low interest housing loan opportunity! Payment drops to 18 thousand TL

Low interest housing loan opportunity!  Payment drops to 18 thousand TL

Recently, Vice President Cevdet Yılmaz made a statement and announced that public works would be carried out to support the acquisition of first homes. So, what are the details of the housing loan?

GYODER published the Turkish Real Estate Sector 2023 3rd Quarter Report research. According to the report, 334,295 houses were sold in the 3rd quarter. While the unit square meter price throughout Turkey reached 27,840 TL, the highest square meter price was in Istanbul with 41,766 TL. There was a sharp decline in mortgage sales and housing sales to foreigners. Making a statement on the subject, Real Estate Expert Mustafa Hakan Özelmacıklı used the following statements:

“When we compare Izmir, Istanbul and Ankara in terms of average housing prices, we can say this. There are some price ranges within the framework of GYODER’s forecast. In general terms, the average figures regarding housing prices that we take as our first reference are the housing price index announced by the Central Bank. Since the housing price index is the average taken from valuation reports, we can say that it reflects the value averages of relatively square meters and loan-eligible flats.

When we look at the last announced housing price index in September, we see that the average square meter unit price in Turkey is around 29 thousand 110 TL.

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However, while this figure for Istanbul is 43 thousand 669 TL per square meter, it is around 33 thousand 054 TL for Izmir and 22 thousand 200 TL in Ankara.


Advertisement portals also have some averages. When we look at these portals, based on the averages of one of the most frequently used portals, we can say that the unit price per square meter in October was around 35 thousand TL in Istanbul, around 20 thousand TL in Ankara, and around 30 thousand TL in Izmir.


The most intense increase can be stated as Ankara, with a rate of 100 percent compared to the same period of the previous year. While this increase is around 75 percent in Izmir, there is an increase of 65 percent in Istanbul.

The difference in square meter housing prices between these two parameters can be summarized as follows. While the real estates loaned at the Central Bank are taken into account, the average price on the advertisement portals is taken as the average of all real estates, even if they are not suitable for credit. Differences can be seen in such price averages due to the new construction of buildings and whether the houses are suitable for loans.


There is a really significant decline in mortgage sales. When we look at this numerical perspective, there was a 58 percent decrease in mortgage sales in October compared to the same month of the previous year. Mortgage sales remained at 5577 levels. We see that the share of mortgage sales in total housing sales decreased to 5.9 percent. When we look at the year as a whole, that is, in the January-October period, mortgage sales decreased by 31 percent compared to the same period of the previous year, reaching 166 thousand. 50 thousand of the mortgage sales in the January-October period were first house sales. We can say that loan restrictions and high interest rates on second homes have a high impact.


There are currently significant restrictions on loans in public banks. There are differences between BRSA’s housing loans for first-time home buyers and those who already own a home. Today, if a person who is buying a house for the first time wants to take out a loan of 1 million TL, a monthly payment of approximately 29 thousand 500 TL is required with a maturity of 120 months and an interest rate of 2.85 percent per month. This is life insurance etc. It varies with conditions. It should not be forgotten that the values ​​of the real estate in the valuation report also have an impact on the loans that can be taken. We are talking about a repayment of approximately 30 thousand TL for 1 million TL.


We can say that the interest rates related to the housing campaign are an important expectation for housing producers. At the same time, there is a general opinion that current interest rates are high for those who want to buy housing. We think that consumers will have a high probability of benefiting from campaigns that can be up to 1.50 percent per month within the scope of the campaign. If such an arrangement is made, considering that there may be a monthly interest rate of 1.50 percent for a 1 million TL mortgage loan, the payments will decrease to 18 thousand TL. We can say that these are more acceptable rates in the market.

Easier financing will stimulate the demand for housing. It may stimulate falling housing sales. It provides a significant advantage for low- and middle-income citizens to own a home. “There may be significant contributions to employment and the market due to the positive effects it will have on the sales of projects whose construction has slowed down and which are expected to be built or not.”


This news article has been translated from the original language to English by WorldsNewsNow.com.

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