Attention those thinking of buying a home: Who can benefit from low-interest housing loans?

Citizens are curious about the details of the low-interest loan application for first-time homebuyers. With the Medium-Term Program (OVP), a new housing loan campaign suitable for low-income citizens is expected to be implemented.

Vice President Cevdet Yılmaz had stated after meeting with representatives of the financial world that ''As the public sector, we will act within a framework that supports first-time home acquisition.''

It was reported that the Central Bank and the BRSA (BDDK) were working on this issue. However, additional conditions may be introduced for low-interest housing loans.

Speaking to Milliyet, Real Estate Expert Mustafa Hakan Özelmacıklı said that additional conditions might be introduced for the loan regulation.

Hakan Özelmacıklı stated, "If a regulation is introduced, additional conditions may come to the agenda, such as having resided in that province for a certain period, not having any real estate registered in one's name, the property not belonging to the spouse or children under 18, the share ratio in any apartment not exceeding 50 percent, and not selling the residence for a certain period."

DECLINE IN HOUSING PRICES

Highlights from Real Estate Expert Özelmacıklı's statements are as follows:

"When we look at the statements of Vice President Cevdet Yılmaz, signals had come that there would be certain restrictions, especially on the credit side, and that loans would be tightened in certain sectors within the framework of these restrictions.

Housing loans were restricted as of the end of August, especially for those buying a second home, not for those buying their first. The regulation had become expected by those who would be homeowners for the first time.

With the appetite for lending being cut off by banks in credit cards, personal loans, auto loans, and second housing loans, we see that credit growth is not desired.

A significant decline in credit volume has begun on the BRSA side. The level has fallen to 443 billion 461 million TL. There is an important framework here where loans are being restricted.

When we look at the housing price index announced by the Central Bank, the increases in the last 1 year have fallen to the level of 21.9 percent.

INCREASE IN CONSTRUCTION COSTS CONTINUES

Due to rising construction costs, the increase in construction costs for housing continues. Especially with the raise to be brought to the minimum wage starting from January and other regulations, it does not seem that the increases will decrease in the short term.

In addition to the problem of access to credit in the sector, we see that there are some difficulties regarding machinery, equipment, and tools due to the current density in the earthquake zone, as well as the inability to find masters and workers to work.

Within the framework of these loans, the market expectation is the opening of a loan process for people who will buy a house for the first time. This has seriously locked the market. People still carry an expectation. We believe that if such a loan is not to be given, it should be expressed with a clear statement by the President.

The Minister of Treasury and Finance may have some statements regarding the removal of the limitation on loans for those who will buy a house for the first time.

ADDITIONAL CONDITIONS MAY BE INTRODUCED

If a regulation is introduced, additional conditions may come to the agenda in its details, such as having resided in that province for a certain period, not having any real estate registered in one's name, the property not belonging to the spouse or children under 18, the share ratio in any apartment not exceeding 50 percent, and not selling the residence for a certain period.

We can say that housing loan interest rates in private banks currently vary between the 2.85 and 3.25 band.

In the market, if a person wants to take out a 1 million TL loan at 3 percent per month, their monthly payment is around 30 thousand 800 TL. The annual cost reaches 42 percent. For 1 million TL, they need to make a repayment at the level of approximately 3 million 700 thousand TL.

PROVIDES A 12 THOUSAND TL ADVANTAGE

For example, if a loan discount close to 50 percent were given and a loan could be provided at 1.50 interest, this person would be able to pay installments at the level of 18 thousand TL instead of 30 thousand 800 TL per month. Looking at it from this perspective, there is an advantage of 12 thousand TL in monthly payment, and the total payment decreases to levels of 2 million 160 thousand TL.

If it were desired to provide a 2 million TL loan with a 120-month maturity at a 3 percent interest rate, the monthly installment amount would reach 61 thousand 779 TL. If it were desired to provide a loan at 1.50 percent, the monthly amount would drop to around 36 thousand TL.

We believe it would be beneficial to evaluate it as an incentive element for those who break their maturity in KKM (Currency Protected Deposit) accounts. In other words, we evaluate that such a loan opportunity can also be provided to those who break their down payment part from KKM and will buy a house for the first time.

120-MONTH MATURITY LIMIT

In terms of maturity, 120 months is currently the limit applied for housing. When interest rates are high, borrowing for such a long term is actually not an advantage. Perhaps maturities could be extended up to 15 years, that is, up to 180 months, but we see that it is not preferred by consumers.”