How things have changed! Getting a mortgage is now a dream: Becoming a homeowner has become nearly impossible under AKP rule
Rising interest rates and soaring home prices have made buying a home with a mortgage nearly impossible. With even four minimum-wage earners unable to cover a single installment, banks are rejecting applications, and finding a home for 3 million liras in Istanbul has become almost impossible.
12punto
The dream of owning a home in Turkey is becoming more distant with each passing day. Rising interest rates and increasing housing prices have left salaried employees, especially in large cities, hopeless about obtaining a mortgage. Citizens who dream of buying a home are struggling to access credit due to the rising costs.
LOAN PAYMENTS HAVE RISEN, PURCHASING POWER HAS FALLEN
According to recent data, the total cost of a 3 million lira mortgage over 10 years reaches 11 million 120 thousand liras. Of this amount, 8 million 120 thousand liras consists solely of interest. In other words, a citizen taking out a loan is forced to pay back nearly three times the amount they received. This situation poses a major obstacle for citizens living on a salary.
IT IS IMPOSSIBLE TO PAY A LOAN INSTALLMENT WITH A MINIMUM WAGE
Monthly payment plans make the situation even more difficult. The monthly installment for a 3 million lira loan taken out at a 2.99 percent interest rate reaches 92 thousand 392 TL. However, considering that the current minimum wage is 22 thousand 104 TL, even if four minimum-wage earners came together, they could not pay this installment. This total, which reaches 88 thousand 416 TL, is not even enough to cover a single loan installment.
Real estate expert Arif Tosun states that the rate of banks rejecting loan applications is increasing. “It is not realistic for someone earning 50 thousand – 60 thousand liras to make a monthly loan payment of 80-90 thousand liras. That is why most applications are not approved,” says Tosun.
HOUSING PRICES ARE RISING IN LARGE CITIES, FINDING A HOME IS BECOMING DIFFICULT
Especially in large cities like Istanbul, it is almost impossible to find a home for sale for 3 million liras. Existing properties are either very old or impossible to pay for with loans. Rising home prices have pushed an already difficult process into a further deadlock. Accessing credit in large cities is difficult, and even if it is accessed, paying the installments has become another problem.
CITIZENS VIEW MORTGAGES WITH HOPELESSNESS
Citizens state that becoming a homeowner with a mortgage has become nearly impossible. Those who say, "It is very difficult to buy a home in this era," express that average home prices in Istanbul start at 7-8 million liras and that it is a dream for someone working for minimum wage to become a homeowner at these prices. Stating that even a lifetime of work would not be enough to buy a home, citizens express their hopelessness by saying, “We prefer not to buy a home. We cannot pay the loan anyway.”