New landscape for housing loans: Who can get what loan and how much? Calculated with current interest rates...

With the latest regulation in housing finance, the distinction between first-hand and second-hand homes has been removed, the loan ceiling has been raised, and new rates based on energy class have come into effect. As a result, both high-priced homes in metropolitan areas and new projects have been included in a broader loan scope.

According to the new practice, it has become possible to use loans for homes with an appraisal value of up to 20 million liras. This step has ensured that high-value homes are also included in the financing system.

HOW IS THE LOAN AMOUNT CALCULATED?

The loan amount is determined based on the home's appraisal value and energy class. Homes with high energy efficiency allow for a higher loan-to-value ratio.

Rates for homes with an appraisal value of 1 million TL:

A–B energy class: 900 thousand TL

C energy class: 800 thousand TL

Those without an energy class: 700 thousand TL

This table reveals that as energy performance increases, access to credit also increases.

MONTHLY INSTALLMENT AND REPAYMENT EXAMPLES

Banks' current calculations are based on a 2.49 percent interest rate and a 120-month maturity.

1 MILLION TL A–B CLASS HOME (900 THOUSAND TL LOAN):

Monthly installment: 23,645 TL

Total repayment: 2 million 837 thousand TL

20 MILLION TL HOME (10 MILLION TL LOAN – UPPER LIMIT):

Monthly installment: 262,732 TL

Total repayment: 31 million 527 thousand TL

SAMPLE CALCULATIONS BY PRICE

3 MILLION TL HOME

A–B class:

Loan: 2.7 million TL

Monthly: 70,937 TL

Total: 8.51 million TL

C class:

Monthly: 63,055 TL

Total: 7.56 million TL

5 MILLION TL HOME (A–B CLASS):

Monthly: 118,229 TL

Total repayment: 14.18 million TL

10 MILLION TL HOME

A–B class:

Loan: 7 million TL

Monthly: 183,912 TL

Total: 22.07 million TL

C class:

Total repayment: 18.91 million TL

INCOME CRITERIA STILL APPLY

According to information from NTV, banks continue to use income criteria when granting loans. Loans are provided in such a way that the installment amount does not exceed 50 percent of the documented monthly income.

For example, an applicant with a monthly income of 100 thousand TL can access a loan with a maximum monthly installment of 50 thousand TL. For married applicants, the limit can be calculated higher based on household income.

THE ROLE OF THE ENERGY IDENTITY CERTIFICATE

The home's Energy Identity Certificate directly affects the loan amount. The certificate can be checked via the “Energy Identity Certificate Inquiry” screen on e-Devlet. For homes with a low energy class, if the expected loan amount cannot be reached and the loan is not used, the appraisal fee is charged to the buyer.

LIMIT INCREASE STANDS OUT

While the expected decrease in interest rates has not yet occurred, the increase in the loan upper limit and the expansion of the scope have opened a new space for those planning to buy a home. Homes with high energy efficiency stand out with more credit and stronger financing opportunities.

News Source: 12punto