New mortgage terms in Turkey: What will change for real estate buyers?
The Banking Regulation and Supervision Agency of Turkey (BDDK) for some mortgage loans. The aim is to ensure the macro-financial stability of the country.
It is worth noting that the changes will affect only those who plan to buy a second and subsequent home. For buyers of their first home, conditions will not change.
One of the key changes was the tightening of the loan-to-purchase price ratio. Previously, the ratio was 90%, but under the new changes, it has been set at 22.5%.
So, if buyers want to buy a second home, they will only be able to get a loan for up to 22.5% of the property value. This means that they will have to make a larger down payment.
According to the Turkish Central Bank, the volume of housing loans stood at 403 billion Turkish Liras as of August 18, 2023. From the beginning of the year to June, there has been a decline in residential mortgage sales by more than 28% (to 136,000), and total residential real estate sales have decreased by 18% compared to the same period in 2022 (to 675,000).