Huge increase in interest on home loans: here are the interest and the amounts of the installments to pay

The citizen, who has already paid for two more houses with the interest on the home loan he took from the bank, has begun to find even higher interest rates in the last days of the electoral period.

Although the rates on home loans from public banks have not yet changed, the rates on home loans from some private banks increased by 0.38 points, while some others increased by 1.2 points.

Two months ago, the amount of the monthly payment of the housing loan taken for an apartment of average price in Istanbul started from 28 thousand TL in public banks, while this amount increased to 63 thousand TL in private banks.

Home loan rates, which ranged from 1.29 to 2.99 percent at the time, increased to 3.5 as of this week.

The monthly payment for housing loans started at TL 33,000 and increased to TL 72,000.

LOAN COST OF 2 MILLION TL WITH A TERM OF 10 YEARS

HOUSE OF 100 SQUARE METERS 3.3 MILLION TL

According to the current data of the Central Bank (CBRT), the price of a square meter of a house in the whole country reached 21 thousand 777 TL as of March, and the average price of a house of 100 square meters rose to 2 million 177 thousand TL .

In Istanbul, as of March, prices per square meter increased to 33,731 TL, while the price of an average 100-square-meter residence in this city reached 3.3 million TL. This amount rises to 4 million TL for a house of 120 square meters.

1.3 MILLION TL OF SAVINGS NEEDED EVEN IF THE BANK PROVIDES A LOAN

So how much credit can be withdrawn from banks in this environment where even average prices are above TL3 million?

According to the latest applications, 90 percent of houses with an appraisal value less than TL 1 million receive loans; 60-70 percent of the houses with an appraisal value between 1 and 2 million TL and 50-60 percent of the houses between 2 and 5 million TL are handed over.

One of the first obstacles facing citizens is the credit restriction imposed by banks. It is claimed that private banks are also involved in this.

However, even if banks do not limit credit and give 60 percent of the loan for a house of average price (3.3 million TL) in Istanbul, they give a maximum of 2 million 23,000,860 TL.

This means that the citizen has 1.3 million TL in savings even to buy a medium-sized apartment in Istanbul. This amount was 1.1 million TL two months ago and around 350,000 TL in the same period last year.

8.7 MILLION ARE PAID IN 10 YEARS, 6.7 MILLION INTEREST

Let’s imagine that a citizen with the necessary knowledge can withdraw all the loan he needs from the bank.

The required monthly payment for the remaining home loan of 2 million TL starts from at least 33,000 TL and goes up to 72,000 TL. This means that if the public bank loan is used, a total of more than 4 million TL is paid to the bank in 10 years.

Even if the loan was used from a private bank, the total amount of the payment exceeds 8.7 million TL in 10 years; 6.7 million TL of the total payment of 8.7 million TL is made as interest payment. In other words, the citizen who buys a house for himself pays almost as much money for the house to the bank as the interest.

PRIVATE BANKS ALSO LIMITED, LOAN SALES FALLING HARD

According to the information we have obtained, citizens, who expected prices to rise further after the elections, increased the demand for housing, but since private banks also participated in the credit crunch of public banks, they could not obtain the amount of credit. What they needed.

Public banks had limited these loans to TL 250,000 in the pre-election period.

Data released yesterday by the Turkish Statistical Institute revealed the decline in home sales and home loan sales.

Consequently, while nationwide home sales declined 35.6 percent annually in April, credit home sales declined 32 percent over the same period. The drop in credit sales is expected to deepen in May.