What is the Housing Finance System (Mortgage)?
Mortgage means a long-term home loan secured by a lien on the real estate, and it is one of the financing methods widely used in the world for real estate purchases. The system is based on financial institutions established for this purpose, particularly banks, providing loans with long terms such as 30 years against a lien on the real estate.
Can I continue to pay TL by transferring my foreign currency-indexed mortgage?
You may have taken out your existing mortgage in USD, EUR or another currency, however you may no longer want to undertake the exchange rate risk of your loan. In such case, your can convert the currency to TL when transferring your mortgage.
Can properties without freehold title deed obtain loans?
Loans can be offered provided that they have an easement title deed and 75% of the property is completed.
How will the value of the property be determined in the mortgage system?
Housing finance companies will have CMB's licensed experts to carry out the valuation of the properties to be purchased.
What are the key aspects that must be taken into consideration by consumers who want to purchase a property?
The first aspect that needs to be considered is the determination of the ability to pay. Since the terms are long in the system, the consumer must have a permanent and regular income throughout the term. Another important aspect is the selection of the type of the loan. While the installment amount will remain fixed throughout the term in fixed rate loans, the installment amount will change according to the index in index-based variable rate loans.
Which loans are included within the scope of housing finance in the Mortgage Law?
Providing consumers with loans for the purchase of a property, financial leasing of a property to the consumers, providing consumers with loans through the collateral of the property they own, and providing consumers with loans to refinance their existing loans are within the scope of housing finance. Properties in the construction phase are also included in the system. However, since properties that have an occupancy permit will be needed for the securitization transactions of the housing finance companies, these types of loans and loans provided to finished properties with easement title deeds cannot be securitized within the scope of the law.
Can I lower the interest rate when transferring my mortgage?
Mortgage interest rates may have fallen in line with the improvements in the financial markets and your mortgage interest rate may now be too high compared to the current market interest rates. In such case, you can lower the interest rate when transferring your mortgage.
Can I shorten or extend the term when transferring my mortgage?
You can shorten or extend the term of your existing mortgage as you like according to the monthly installment amount you can pay.
Can I decrease or increase my installments when transferring my mortgage?
When transferring your mortgage, you can decrease your installments to suit your current budget, or increase them to pay off your debt in a shorter period of time.
Can I transfer my mortgage?
If you think that the mortgage you have taken out is no longer advantageous for your with the changing of the market conditions or your own conditions, you can transfer your mortgage.