In June 2013, mortgage interest rates, which declined to historically low levels of 0.69 percent on a monthly basis, continued to climb with the outbreak of domestic mortgage announcements, terrorsim operations and country conditions.
According to the Anatolia news agency, With the rise of geopolitical tensions, especially the dropping of the Russian plane in 2014, with the July 15 coump attempt and the Fed’s interest rate hikes, the interest rates on residential loans rose to 1.20 percent on a monthly basis.
Following the coup attempt, President Recep Tayyip Erdogan’s call, as well as Ziraat Bank and other banks, the participation and the housing loan interest rates were discounted. In March last year, the interest rate on mortgage loans decreased to 0.92 percent on a monthly basis.
Housing Loan Interest Increased to 1.23 percent
After the resignation of President Erdogan, housing loan interest rates again rose to over 1 percent after four months. Last year the central banks of developed countries when implementing tight monetary policy, the Central Bank of the Republic of Turkey to fight against inflation has continued to adopt a tight monetary policy stance.
The housing loan interest rate reached 1.23 percent at the end of March, the highest level since August 2008. Housing loan interest rate reached 1.23 percent at the end of March, the highest level since August 2008; the annual interest rate on housing loans was 14.79 percent.
Increase in Interest Rates Increased Housing Loan Cost by 16 percent
The housing loan interest rate was 11.06 percent in March last year. In residential credit, monthly interest rates increased by 31 points in the last year, from 0.92 to 1.23.
A year ago, a citizen who received 100 thousand Turkish liras with a maturity of 0.92 to 120 months paid a monthly installment fee of 1380 TL. The total amount the citizen will repay is 165,600 TL.
If the citizen who gets a 1.23 percent housing loan in March of this year in the same terms and minutes, he should pay 1,599 TL as a monthly credit installment. For a period of 120 months, a total of 191,880 TL must be paid for the loan.