The Minister of Treasury and Finance Noureddine Nebati and the Minister of Environment, Urbanization and Climate Change Murat Kurum officially listed further details of the long-awaited housing campaign for the middle-income population.
As already mentioned, the interest rate on a long-term housing loan for them will be 0.69% instead of the average 1.2% per month; the duration of payments is no more than 15 years.
Further: the initial payment will be 10% of the cost of the purchased housing. It also became known that installment payments should not exceed 40% of the family income, and in the first three years – no more than 30%.
Turkey was also conditionally "divided" into three regions: Istanbul got into the first, Ankara, Izmir, Antalya, Bursa, Mersin provinces got into the second; and, finally, all the other provinces got into the third.
The volume of planned financing per household in the first region – Istanbul – will not exceed 5 million Turkish liras (TL), in the second region – no more than 3 million TL, and in the third region – no more than 2 million TL.
Households whose monthly income does not exceed 80 thousand TL in Istanbul, 65,000 TL in the second region and 45,000 TL in the third region will be able to take advantage of the preferential program – that is, to participate in the campaign. Mr. Nebati also clarified that the acquired residential real estate will not be sold for the next five years.
Here are the payments on the example of one million Turkish liras borrowed from a bank:
- 1st year – 4,410 TL;
- 2nd year – 5,400 TL;
- 3rd year – 6,480 TL;
- 4-7 years -10,315 TL;
- the last 8 years - 12,697 TL, which, taking into account inflation, makes the payments of recent years minimal.