‘Middle Income Housing Campaign’ Published in the Official Gazette

The new regulation regarding the housing campaign, which was announced in January and aimed at middle-income households to become homeowners, was published in the Official Gazette. “Decision Regarding the New Housing Finance Program” and the lines of housing finance were clearly drawn.

In the decision, all details regarding the financing of housing that can be financed, terms of benefiting from financing contributions, maturity, interest and profit share rates to be applied in the treasury contribution, maximum housing and financing prices, payment plans and flexible payment application were included in the decision.

New housing finance program:

What residences will it cover?

• Houses that have not been sold before, are owned by contractors and whose construction is 100% completed,
• Housing projects that are under the ownership of the contractors or that are under construction, provided that the ownership is transferred to the contractors when completed,
• Housing projects that have not been started, provided that the necessary permits have been obtained and a guarantee contract has been signed with the banks that will make the financing available, and that are owned by the contractors or transferred to the contractors upon completion.

Housing conditions:

Financing, reported in the valuation by real estate experts house value and the sales amount of the house will have an upper limit for both. Housing value or sales amount of the house,

• 9 million TL for the first region,
• 5 million TL for the second region,
• It will not exceed 3 million TL for the third region.

First region: Istanbul
Second zone: Ankara, Izmir, Bursa, Antalya, Mersin, Mugla
Third zone: other provinces

Who can benefit from the financing?

• To be 18 years old and over and a citizen of the Republic of Turkey,
• Not having the title deed for himself, his wife or children under the age of 18 (Those who own real estate such as land, shops, etc. will be able to benefit from financing),
• Not to have more than 50% share in any housing deed,
• If there is more than one shareholder housing title, financing will not be available even if these shares are below 50%.
• Those who have not sold any house in the province where they will buy a house within a year (except for share housing sales)
• To have completed the payments of the individual loans provided by the Housing Development Administration, if any,
• To have paid at least 270 days of social security premium in a year (General health insurance premium payments are not in this scope)
• To comply with the maximum net household income of 80 thousand TL for the first region, 65 thousand TL for the second region and 45 thousand TL for the third region.

Financing support maturity, interest and profit share rates:

housing finance, 15 years maturity will be used with Term in flexible payment application, not to exceed 15 years will be determined by the agreement of the bank providing the financing and the applicant.

• Interest/profit share rate for financing amount up to 2 million TL: 0.69%
• Interest/profit share ratio for 2 million TL – 4 million TL financing amount: 0.79%
• Interest/profit share ratio for 4 million TL – 5 million TL financing amount: 0.99%

A maximum of 5 million TL financing will be provided.

Maximum financing amounts, not to exceed 90% of the reported housing value,

• 5 million TL for the first region,
• 3 million TL for the second region,
• For the third region, it will be 2 million TL.

Flexible payment application that banks will offer:

If the Treasury contribution is not requested, banks will be able to offer flexible payment plans for housing finance. The terms and details of this application are as follows:

• Flexible payment plans have to include contractor contribution (based on residential sales price) 5% contribution margin)
• In repayment plans, if the installment amount in the first three years exceeds 30% of the household income, the banks charge the principal and interest rate/profit share amount required to be received in the relevant month in the installment plan, on the remaining principal with the same interest rate/profit share as the financing, in order to provide ease of payment to these individuals. adding it can be delayed.

Penalties for non-compliance:

• In case the housing valuation report is false or untrue, the administrative fine to be imposed on the real estate expert or the valuation institution that prepared the report, pursuant to the tenth paragraph of Article 76 of the Law No. 6362, will be increased 10 times.
• The amount of administrative fine to be applied shall not be less than 10% of the sale price of the house subject to financing.
• The amount of contribution determined to be given unfairly by the banks will be collected by the relevant tax office from the bank providing the financing, together with the late fee.
• Persons who make false or misleading statements will be fined up to 5% of the financing amount used.
• Contractors who make false or misleading statements will be fined up to 25% of the sales price of the house.

You can find the decision published in the Official Gazette here.

Details of the middle income housing campaign: