Pro-government newspaper announces: 'Low-interest' housing loan is coming

Following the rise of housing loan interest rates to 3.23 percent, it has become difficult for citizens to become homeowners. After the increase in loan interest rates, the Central Bank and the BRSA have taken action. While a long-term, low-interest housing loan is expected to come into effect in October, the maturity and interest rates have been determined.

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Pro-government newspaper announces: 'Low-interest' housing loan is coming

The Ministry of Treasury and Finance and the Banking Regulation and Supervision Agency (BRSA) are working on an affordable lending system for those who want to become homeowners for the first time.

Taking into account developments in rent and housing prices, new social housing projects will be developed to rapidly increase the housing supply that narrowed during the pandemic and to compensate for the losses in the housing stock caused by the earthquake, thereby increasing access to housing for low-income citizens.

The BRSA had previously changed the loan-to-value ratios applied to housing loans and housing-collateralized loans, and had introduced various restrictions for those purchasing a second home.

TO BE IMPLEMENTED IN OCTOBER

According to a report in the pro-government newspaper Sabah, low-interest loan support for first-time homebuyers through public banks is expected to be implemented with the opening of Parliament in October.

The target audience for the low-interest housing loan is low- and middle-income families, and they will be provided with the opportunity to become homeowners as if they were paying rent, with favorable payment terms.

Housing loans provided by the public sector under favorable conditions will support first-time home acquisitions and will be allocated to newly started projects that meet specific standards and are within an affordable price range for low- and middle-income citizens.

INTEREST AND MATURITY RATES DETERMINED

The targeted maturity and interest rates for the low-interest housing loan have also been determined.

The 1.20 percent interest and 180-month maturity option planned for the first homes of low-income individuals will reduce the interest burden by 70 percent compared to the current situation.

Banks currently apply an average monthly interest rate of 3.23 percent on housing loans.

9 MILLION TL INTEREST PAYMENT ARISES

According to this rate, when a 2 million TL loan is taken out with a 180-month maturity, the monthly payment is 64 thousand 812 TL, and the total payment is 11 million 666 thousand TL.

In the current situation, an interest burden of 9 million 666 thousand TL arises.

If the interest rate is reduced to 1.2 percent for the same maturity, the monthly payment for 2 million liras drops to 27 thousand 174 liras, the total payment to 4 million 891 thousand liras, and the interest burden to 2 million 891 thousand liras.

News Source: 12punto