Economy in Turkey: Credit restriction for those purchasing a second home

The Banking Regulation and Supervision Agency (BRSA) has imposed credit restrictions on those buying a second property. The loan amount will be 75% lower compared to before. However, no credit restrictions will be applied to those purchasing their first home.

Consumers who, themselves, their spouse, or their children under the age of 18 already own a home will be able to use less credit for a second property. Under the decision, up to 5 million Turkish liras will be granted as credit for newly built properties, at a rate of 22.5%. This rate will be 20% for newly built properties priced between 5 to 10 million Turkish liras.

REGULATION ON RISK FOR BANKS

According to TRT Haber, the rates have also been lowered for those preferring to purchase second-hand properties. As per this regulation, credit can be obtained for up to 22.5% of second-hand properties priced below 1 million Turkish liras. For second-hand properties priced between 1 to 2 million Turkish liras, credit of up to 17.5% can be obtained.

Banks will also be subject to a risk regulation. Banks providing loans for second homes will face a higher risk weight, set at 150%.

SOURCE: diken.com.tr/ikinci-evini-alacak-olanlara-kredi-kisitlamasi/