With the decision taken on November 15, mortgage interest rates rose. After public and private banks increased their rates, many people began to check the current mortgage interest rates.
Mortgage Rates Increased
Following the Central Bank’s decision, both state-owned and private banks raised their current mortgage interest rates. This rise in rates for home loans, which is important for those who want to become homeowners, has led many prospective buyers to ask what the new rates are.
Following the latest rate hikes, banks set their mortgage rates as follows:
- Akbank mortgage rate: 1.30%
- ICBC Bank Yeni Evim mortgage rate: 1.30%
- İş Bankası mortgage with life insurance: 1.35%
- Ziraat Bank mortgage rate: 1.25%, for new homes: 1.09%
- Halkbank Hesaplı Evim mortgage rate: 1.25%, for new homes: 0.99%
- Vakıfbank Sarı Panjur mortgage rate: 1.25%, for new homes: 0.99%
- QNB Finansbank mortgage rate: 1.51%
- Odeabank mortgage rate: 1.59%
- Burgan Bank mortgage rate: 1.70%
- Şekerbank mortgage rate: 1.79%
- HSBC Bank mortgage rate: 1.90%
- ING Bank mortgage rate: 1.39%
- Denizbank mortgage rate: 1.43%
- Yapı Kredi Bank mortgage rate: 1.43%
How to Obtain a Mortgage?
Income level is the primary factor when applying for a mortgage. To obtain a loan, you must provide documents proving that you can comfortably meet the monthly payments. Once a document demonstrating the ability to pay mortgage installments is submitted, the bank can proceed with the loan application. Many people who do not have sufficient savings for an outright purchase apply for mortgages to buy homes. Mortgage amounts are calculated based on the bank’s interest rate, and the loan is repaid with the added interest.
Generally, banks finance between 50% and 80% of the property’s value, so a down payment is typically required. Without a down payment, you may not be able to cover the full purchase price. After meeting the income requirements, you apply to the bank with the title deed copy, and the bank will assign an appraiser to evaluate the property’s market value. The appraiser determines the fair market value and helps the bank set the loan amount. The appraisal service is charged and typically deducted from the loan.
What Documents Are Required for a Mortgage?
When applying for a mortgage, the bank requires specific documents at the time of application. The necessary documents usually include the applicant’s ID, a copy of the title deed, and proof of income or rental income. For salaried employees, a work history statement obtained from the e-government portal or the Social Security registration and service record (Sigortalılık Tescil ve Hizmet Kaydı) should be provided. Business owners should submit their tax certificate, year-end financial statements, and interim financial reports.
Additionally, a letter of good standing from the employer can positively influence the bank’s lending decision. After the bank verifies that all required documents and conditions are met, the mortgage can be approved. If the borrower repays the loan early, a 2% early repayment commission is typically charged.