Real Estate

BRSA has updated the loan utilization limit of up to 90% in housing loans

The Banking Regulation and Supervision Agency has updated the loan utilization limit of up to 90%, which was previously determined for residences with a value of ₺2 million and below, as for residences with a value of ₺5 million and below.

The decision regarding the amendments made to the “Regulation on Credit Transactions of Banks” was published on the official website of the BRSA.

In line with the amendment, the ratio of the loan amount to the value of the house received as collateral for loans to be extended to consumers for housing purchases and for housing loans excluding vehicle loans has been updated.

Accordingly, 80-90% of this amount can be used for new houses with a value of ₺5 million or less.

The said rate will be between 70% and 80% for new houses with a value between ₺5 million and ₺10 million. Consumers will be able to get loans up to a maximum of 60-70% of this price for brand-new houses whose value varies between ₺10 million and ₺20 million.

Between 50 and 60% of the new houses with a value of more than ₺20 million will be able to use loans.

The maximum rates for second-hand houses have also been re-determined.

With the decision, the maximum loan amounts that can be extended in the purchase of second-hand housing and housing-guaranteed loans were also revised upwards.

Accordingly, 90% of this price can be used for second-hand houses with a value of ₺1 million or less. The said rate will be between 60% and 70% for second-hand houses with a value between ₺1 million and ₺2 million.

Consumers will be able to get loans up to a maximum of 50-60% of this price for second-hand houses whose value varies between ₺2 million and ₺5 million.

While a loan of ₺2.5 million to ₺3 million can be used for second-hand houses with a value between ₺5 million and ₺10 million, credit cannot be used for second-hand houses over ₺10 million.

On the other hand, the loans to be extended within the scope of the New Housing Finance Program will not be subject to the determinations made within the scope of the decision.

Previously, the BRSA was able to provide loans at the level of 80-90% for brand-new houses with a value of ₺2 million or less. For second-hand houses, the condition of using a maximum of 90% credit was applied for houses with a value of ₺500 thousand and below.

Source: Trthaber / Prepared by Irem Yildiz

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