New Turkish Mortgage System Given Green Light

Turkey’s long awaited mortgage system is firmly on the agenda of the Turkish Government in the run up to the country’s elections, according to reports from the Turkish Daily News this week. Turkey has waited for 15 months for the bill regarding the new mortgage system to be passed in Parliament – this has now been announced to take place before the end of February.

The decision to pass the mortgage bill is seen as part of the Turkish Government’s plans to place themselves favourably before the impending elections. This is due to the fact that so many people stand to benefit from accessible mortgages: property purchasers will be able to take advantage of the financing and real estate prices across the board are likely to increase once the bill is passed.

Currently, banks offer loans with fixed interest rates, but the new mortgage system will provide purchasers with interest rates that are flexible to adapt to market conditions. As a result, the system is predicted to cause banks to reduce their loan interest rates. Tax advantages under the bill should come into effect within two years.

News of the mortgage bill was received enthusiastically by potential buyers who have been anticipating its passing for some time. It is predicted that these buyers will now take advantage of Turkish mortgages, which will further bolster Turkey’s healthy real estate market.