The limit for housing loans has been updated: properties valued under 5 million Turkish lira can now qualify for financing up to 90%. The Banking Regulation and Supervision Agency (BDDK) revised the limits for mortgage lending. Previously, the 90% loan-to-value limit applied only to homes priced at 2 million lira or less; the BDDK has increased that threshold to 5 million lira.
PROPERTIES VALUED BETWEEN 5 MILLION AND 20 MILLION
The decision amending the Regulation on Bank Credit Transactions was published on the official website of the Banking Regulation and Supervision Agency (BDDK). Under the update, the maximum loan amount relative to the appraised value of the property—applicable to mortgages used for purchasing a home and to other loans secured by real estate, excluding vehicle loans—has been revised. According to the new table, brand-new homes with a value of up to 5 million lira can be financed for 80% to 90% of their value.
MAXIMUM RATIOS REDETERMINED FOR SECOND-HAND HOMES
For new homes valued between 5 million and 10 million lira, loans can cover 70% to 80% of the value. For new homes priced between 10 million and 20 million lira, lending is capped at 60% to 70%, while homes valued above 20 million lira may receive 50% to 60% financing. In short, the higher the property value, the lower the allowed loan-to-value ratio.
NEW HOUSING FINANCING PROGRAMS EXCLUDED
The decision also raises the maximum loan amounts for purchases of pre-owned (second-hand) homes and other loans secured by housing. Second-hand homes valued at 1 million lira or less can qualify for financing up to 90% of their value. For second-hand homes priced between 1 million and 2 million lira, the loan-to-value range is set at 60% to 70%.
Similarly, second-hand homes valued between 2 million and 5 million lira can receive financing covering 50% to 60% of the value. For second-hand homes in the 5 million to 10 million lira range, borrowers may access loans in the range of 2.5 million to 3 million lira. No loans will be extended for second-hand homes priced above 10 million lira under the revised rules.