Mortgage campaign is going to decline: interest rates increased, deferment of repayments canceled

Mortgage campaign is going to decline: interest rates increased, deferment of repayments canceled

Experts of the Turkish real estate market state that homeowners who have greatly inflated prices on the wave of the mortgage rush will now have to wait a long time for buyers. The unique mortgage campaign in Turkey is on the wane: loan amounts have already fallen, interest rates have risen, and the upward trend will continue. By August 2020, the total volume of mortgage lending in Turkey reached 261 billion 763 million lira, and further financing of mortgage loans by the country's banks will be more difficult, according to the newspaper Emlak Kulisi. How have interest rates changed? The minimum mortgage rate for a new apartment for sale in Turkey increased from 0.64 percent to 0.87 percent, and the minimum rate for buying a secondary property - from 0.74 percent to 0.99 percent. The maximum loan amount decreased to 500,000 lira in the most popular cities with real estate buyers in Turkey - Istanbul, Ankara and Izmir. In all other cities and provinces, the maximum loan amount was reduced to 300,000 lira. The deferment of repayments, which was 12 months in state-owned banks and 24 months in private ones, was also cancelled.

It is expected that the prices for apartments in Turkey will not grow so rapidly, although their growth will continue.

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