Fee greater than 100 thousand TL for those who can find a housing loan

After the level of house prices and mortgage interest rates, it has become unthinkable to even dream of owning a house in the countryside. Being a renter has become a nightmare due to increasingly high rental prices.

According to the latest data from BETAM, average home rental prices across the country increased by 121.1 percent annually in June. While the annual rent increase rate was 140 percent in Izmir, it stood out at 189 percent in Ankara.

According to data from the Central Bank (CBRT), until August 2023, home prices for sale increased by 90.3 percent throughout the country. Although this is the lowest annual increase in housing prices in a year and a half, the level of prices per square meter is far from being affordable for citizens.

So much so that the average price per square meter of a house in Turkey is 27,840 TL. In other words, the price of a 100 square meter house throughout the country has exceeded 2.7 million Turkish liras. This amount exceeded 4 million TL for the first time in Istanbul in August.

The highest amount of housing loans granted by public banks remains 250,000 Turkish liras. Monthly payments on mortgage loans granted by private banks start from 72,000 TL.

EVEN IF THE BANK GRANTS A LOAN, YOU NEED A SAVING OF 1.7 MILLION TL

According to the latest practices, 90 percent of houses with an appraised value of less than 1 million lira receive loans; 60 to 70 percent of houses with an appraisal value of 1 to 2 million Turkish lira and 50 to 60 percent of houses with an appraisal value of 2 to 5 million Turkish lira receive loans.

One of the first obstacles that citizens face is the credit restriction imposed by public banks.

However, even if banks do not impose restrictions on loans and grant a loan of 60 percent of the average price of a house in Istanbul (4.1 million Turkish lira), they will only grant a maximum of 2 million 460 thousand Turkish lira .

This means that the citizen has 1.7 million Turkish lira saved to buy a medium-sized apartment in Istanbul.

This amount amounted to 1.3 million Turkish lira in May, when the elections were held. In the same period last year, it was around 350 thousand TL.

TOTAL PAYMENT OF 11.6 MILLION TL IN 10 YEARS, 9.1 MILLION INTEREST

Let’s imagine that in the current economic conditions of Turkey, a citizen has savings of 1.7 million TL and can apply for the necessary loan from the bank…

The monthly payment amount required for the remaining 2.4 million TL home loan starts from at least 72 thousand TL and goes up to 116 thousand TL.

Monthly payments started at 33,000 Turkish lira and rose to 72,000 Turkish lira in May, when elections were held.

This means a total payment of 11.6 million TL to the bank in 10 years. 9.1 million lire out of a total of 11.6 million lire are paid as interest.

In other words, a citizen who buys a house for himself almost pays the money for two houses to the bank as interest.

THE SHARE OF CREDIT SALES DECREASED BY 8.4 POINTS

The fact that owning a house with a loan in Turkey is a dream that becomes more distant every day is also reflected in the data of the Turkish Statistical Institute (TUIK).

According to current TUIK data, housing sales nationwide decreased by 9.5 percent in September compared to the same month last year, falling to 102,656.

Mortgage home sales, which are defined as credit home sales, decreased 50.2 percent in September compared to the same month a year earlier, falling to 8,446.

Sales of mortgage homes in the January-September period were 160,884, with a decrease of 29.6 percent compared to the same period of the previous year.

While the share of mortgage sales in total home sales was 16.6 percent at the beginning of the year, this rate decreased by 8.4 points to 8.2 percent in September.