Housing loan interest rates have fallen! Monthly payment for 1 million TL has been announced

The Central Bank of the Republic of Turkey (TCMB) has cut interest rates once again. Following the decision, the eyes of those who want to become homeowners have turned to housing loan interest rates. Interest rates have seen a notable decline, falling to 2.79 percent on a monthly basis and 39 percent on an annual basis.

According to experts, the decline in interest rates will continue month by month. Those who want to become homeowners by taking out a loan are advised to wait until the end of the year. With this latest decline, housing loan interest rates have reached their lowest level since March 1.

SIGNIFICANT DROP IN MONTHLY INSTALLMENTS

Economist Muhammet Bayram, who made important assessments on the subject to Milliyet, stated the following:

“The overnight borrowing and lending rate and the policy rate have now fallen to the 43.5 percent level. Along with this, both deposit and loan interest rates have shown a decline. Housing loan interest rates have dropped to 2.79 percent monthly, and the annual cost has fallen to the 39 percent level.”

PAYMENT FOR A 1 MILLION TL HOUSING LOAN HAS BEEN DETERMINED

Bayram made the following calculation for a 1 million TL housing loan:

Monthly payment: 28,900 TL

Total payment: 3,490,000 TL

So, when should one take action to buy a home? The concern that housing prices might increase further has prompted those who want to become homeowners to take action, but experts warn against rushing.

WHEN SHOULD YOU USE A HOUSING LOAN?

Economist Muhammet Bayram stated that interest rates could fall to the 25 to 30 percent level by the end of the year.

Stating that a more favorable time should be awaited to become a homeowner, economist Muhammet Bayram said the following:

“Monthly installments determined at high interest rates remain fixed throughout the maturity period. This means high payments for ten years. Furthermore, housing loans are not subject to restructuring like vehicle or personal loans. However, one must also take into account the increase in housing prices.”

Bayram also warned that some homeowners and contractors are taking advantage of the interest rate cuts to raise housing prices.

He said:

“Unfortunately, the public's demand is being manipulated. If there is no urgent need, it is more logical to wait until the end of the year for a housing investment,” he said.