Housing Finance Policy

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A. Legal and Regulatory Framework

A.1 Legal and Regulatory Framework
VariableEnd of 2015End of 2014End of 2013SourcesVar ID
Basis of the legal system: Civil, Common, Islamic, Other? (Describe)CivilCivilCivil
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A.1.1
Are there specific laws that deal with mortgages? YesYesYes
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A.1.2
Registration/Transfer of titles:A.1.3
Does the law clearly define different types of property rights?YesYesYes
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A.1.3.1
 Are property rights easily transferable?YesYesYes
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A.1.3.2
Identify barriers to the registration/ transfer of property title.No specific barriersNo specific barriers 
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A.1.3.3
Typical number of days needed for the transfer of title777
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A.1.3.4
Can liens be effectively enforced?YesYes 
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A.1.4
Are there legal constraints on the types of mortgage products that are permitted?YesYesYes
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A.1.5
Are there legal constraints on mortgage features?YesYesYes
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A.1.6
Interest rate capsNoNoNo
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A.1.6.1
Loan-to-Value capYesYesYes
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A.1.6.2
Payment-to-Income maximumNoNoNo
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A.1.6.3
Other  No
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A.1.6.4
Are there consumer rights for mortgage lending? YesYesYes
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A.1.7
Are there disclosure requirements for mortgage lending?YesYes 
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A.1.8
Is there specialized legislation covering:A.1.9
Issuance of covered mortgage bondsYesYesYes
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A.1.9.1
Issuance of RMBSYesYesYes
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A.1.9.2
B. Housing Finance Subsidies
B.1 Subsidies to Housing Finance Institutions
VariableEnd of 2015End of 2014End of 2013SourcesVar ID
Are there subsidized funding sources for mortgage lenders?  YesB.1.1
Is the lending side of the housing finance system subsidized?  NoB.1.2
B.2 Subsidies to Households
VariableEnd of 2015End of 2014End of 2013SourcesVar ID
Are there subsidies to households on housing finance?  YesB.2.1
Interest rate subsidies by special government fundsNoNoNo
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B.2.1.1
Buy-down of monthly/interest paymentsNoNoNo
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B.2.1.2
Down-payment subsidies NoNoNo
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B.2.1.3
Subsidies to savings for mortgage loansNoNoNo
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B.2.1.4
Mortgage interest deductibility from income taxNoNoNo
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B.2.1.5
OtherYesYesYes
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B.2.1.6
Reach of subsidies in 2.1.1 to 2.1.4 ?B.2.2
C. Taxation
VariableEnd of 2015End of 2014End of 2013SourcesVar ID
What taxes apply to Residential Real Estate?C.1
Tax on property (home-owners) YesYesYes
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C.1.1
Property transaction taxes (purchase/selling)YesYesYes
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C.1.2
Mortgage transaction taxesYesYesYes
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C.1.3
Tax on mortgage interest pmtsNoNoNo
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C.1.4
Tax on capital gains on property YesYesYes
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C.1.5
back to top | Country Data:
Notes: Credit Bureau of Turkey (KKB)
Notes: Credit Bureau of Turkey (KKB)
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Notes: (2010 = 100)
Notes: 15% withholding tax imposed on returns from investments made in mortgage backed securities
Notes: A little higher than 4
Notes: According to regulations of the Banking Regulatory and Supervisory Agency maximum LTV ratio was 75% since Dec 18, 2010
Notes: According to regulations of the Banking Regulatory and Supervisory Agency maximum LTV ratio was 75% since Dec 18, 2010
Notes: According to regulations of the Banking Regulatory and Supervisory Agency maximum LTV ratio was 75% since Dec 18, 2010
Notes: According to regulations of the Banking Regulatory and Supervisory Agency maximum LTV ratio was 75% since Dec 18, 2010
Notes: According to regulations of the Banking Regulatory and Supervisory Agency maximum LTV ratio was 75% since Dec 18, 2010
Notes: All banks use credit scoring.
Notes: All banks use credit scoring.
Notes: All banks use credit scoring.
Notes: All banks use credit scoring.
Notes: All commercial and investment banks may extend housing loans, but only 16 of them are actively extending them.
Notes: All commercial and investment banks may extend housing loans, but only 16 of them are actively extending them.
Notes: All commercial and investment banks may extend housing loans.
Notes: All commercial and investment banks may extend housing loans.
Notes: All commercial and investment banks may extend housing loans.
Notes: All commercial and investment banks may extend housing loans.
Notes: Banking Regulation and Supervision Agency
Notes: Banking Regulation and Supervision Agency
Notes: Banking Regulation and Supervision Agency
Notes: Banking Regulation and Supervision Agency
Notes: Banking Regulation and Supervision Agency
Notes: Banking Regulation and Supervisory Agency
Notes: Banking Regulation and Supervisory Agency
Notes: Capital gains derived from selling properties that have been acquired in the past 5 years are subject to income tax. There is no capital gains tax beyond the 5 year holding period
Notes: Credit Bureau of Turkey (KKB)
Notes: Credit Bureau of Turkey (KKB)
Notes: Credit Bureau of Turkey (KKB)
Notes: Credit Bureau of Turkey (KKB)
Notes: Credit Bureau of Turkey (KKB)
Notes: Credit Bureau of Turkey (KKB)
Notes: Credit Bureau of Turkey (KKB)
Notes: Credit institutions in Turkey have traditionally only issued fixed rate mortgages. It is possible that variable mortgage products have been issued. However, there is no data data for the distinction
Notes: Credit institutions in Turkey have traditionally only issued fixed rate mortgages. It is possible that variable mortgage products have been issued. However, there is no data data for the distinction
Notes: Credit institutions in Turkey have traditionally only issued fixed rate mortgages. It is possible that variable mortgage products have been issued. However, there is no data data for the distinction
Notes: Credit institutions in Turkey have traditionally only issued fixed rate mortgages. It is possible that variable mortgage products have been issued. However, there is no data data for the distinction
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Data found under "Consumer Loans" tab.
Notes: Foreign currency denominated mortgage loan is rare in Turkey. It might be less than 1%
Notes: Foreign currency denominated mortgage loan is rare in Turkey. It might be less than 1%
Notes: Housing Finance Banks
Notes: Housing Finance Banks
Notes: However, tax exemptions exist for SPVs established for MBS issuance purposes.
Notes: However, tax exemptions exist for SPVs established for MBS issuance purposes.
Notes: However, tax exemptions exist for SPVs established for MBS issuance purposes.
Notes: However, tax exemptions exist for SPVs established for MBS issuance purposes.
Notes: However, tax exemptions exist for SPVs established for MBS issuance purposes.
Notes: However, tax exemptions exist for SPVs established for MBS issuance purposes.
Notes: However, tax exemptions exist for SPVs established for MBS issuance purposes.
Notes: However, tax exemptions exist for SPVs established for MBS issuance purposes.
Notes: IMF end of year average market exchange rates for 2007 used [1.17 TRY = 1 USD], Data found under "Consumer Loans" tab.
Notes: IMF end of year average market exchange rates for 2008 used [1.54 TRY = 1 USD]. Data found under "Consumer Loans" tab.
Notes: IMF end of year average market exchange rates for 2009 used [1.50 TRY = 1 USD]. Data found under "Consumer Loans" tab.
Notes: IMF end of year average market exchange rates for 2010 used [1.50 TRY = 1 USD]. Data found under "Consumer Loans" tab.
Notes: It is expected that all banks use credit scoring for all credit issuance and mortgage origination. However, there are no formal data for this.
Notes: It is expected that all banks use credit scoring for all credit issuance and mortgage origination. However, there are no formal data for this.
Notes: Only one consumer finance company extends housing loans: DD Mortgage (www.ddm.com.tr/index_en.html)
Notes: Only one consumer finance company extends housing loans: DD Mortgage (www.ddm.com.tr/index_en.html)
Notes: Only one consumer finance company extends housing loans: DD Mortgage (www.ddm.com.tr/index_en.html)
Notes: Only one consumer finance company extends housing loans: DD Mortgage (www.ddm.com.tr/index_en.html)
Notes: Please use IMF annual average market exchange rate for 2007: [1.30 TRY = 1 USD], Data found under "Consumer Loans" tab.
Notes: Please use IMF annual average market exchange rate for 2008: [1.30 TRY = 1 USD], Data found under "Consumer Loans" tab.
Notes: Please use IMF annual average market exchange rate for 2009: [1.50 TRY = 1 USD], Data found under "Consumer Loans" tab.
Notes: Please use IMF annual average market exchange rate for 2010: [1.50 TRY = 1 USD], Data found under "Consumer Loans" tab.
Notes: Please visit the Research Center or download the data sets for 2007 data.
Notes: Property tax rates vary depending on property type and its location within the boundaries of a metropolitan municipality
Notes: Public, commercial and investment banks may extend housing loans.
Notes: Public, commercial and investment banks may extend housing loans.
Notes: Public, commercial and investment banks may extend housing loans.
Notes: Public, commercial and investment banks may extend housing loans.
Notes: Public, commercial and investment banks may extend housing loans.
Notes: Public, commercial and investment banks may extend housing loans.
Notes: Public, commercial and investment banks may extend housing loans.
Notes: Public, commercial and investment banks may extend housing loans.
Notes: Represents cumulative change of median house prices from 2010-2016 of 110%. Rate is constant across years so after 6 years the accumulation is 110%.
Notes: Represents cumulative change of median house prices from 2010-2016 of 110%. Rate is constant across years so after 6 years the accumulation is 110%.
Notes: Represents cumulative change of median house prices from 2010-2016 of 110%. Rate is constant across years so after 6 years the accumulation is 110%.
Notes: Represents cumulative change of median house prices from 2010-2016 of 110%. Rate is constant across years so after 6 years the accumulation is 110%.
Notes: Represents cumulative change of median house prices from 2010-2016 of 110%. Rate is constant across years so after 6 years the accumulation is 110%.
Notes: Represents cumulative change of median house prices from 2010-2016 of 110%. Rate is constant across years so after 6 years the accumulation is 110%.
Notes: The info is in "Insaat ve Kullanim Izinlerine Göre Konut Üretimi" excel document.
Notes: The info is in "Insaat ve Kullanim Izinlerine Göre Konut Üretimi" excel document.
Notes: The info is in "Insaat ve Kullanim Izinlerine Göre Konut Üretimi" excel document.
Notes: The info is in "Insaat ve Kullanim Izinlerine Göre Konut Üretimi" excel document.
Notes: The LTV ratio is determined as 75%.
Notes: The LTV ratio is determined as 75%.
Notes: The LTV ratio is determined as 75%.
Notes: The LTV ratio is determined as 75%.
Notes: The LTV ratio is determined as 75%.
Notes: The LTV ratio is determined as 75%.
Notes: The LTV ratio is determined as 75%.
Notes: The money gained from all transactions (including those based on foreign currency) in the context of housing finance carried out by housing finance institutions are exempted from Banking and Insurance Transactions Tax.
Notes: The money gained from all transactions (including those based on foreign currency) in the context of housing finance carried out by housing finance institutions are exempted from Banking and Insurance Transactions Tax.
Notes: The money gained from all transactions (including those based on foreign currency) in the context of housing finance carried out by housing finance institutions are exempted from Banking and Insurance Transactions Tax.
Notes: The money gained from all transactions (including those based on foreign currency) in the context of housing finance carried out by housing finance institutions are exempted from Banking and Insurance Transactions Tax.
Notes: The money gained from all transactions (including those based on foreign currency) in the context of housing finance carried out by housing finance institutions are exempted from Banking and Insurance Transactions Tax.
Notes: The money gained from all transactions (including those based on foreign currency) in the context of housing finance carried out by housing finance institutions are exempted from Banking and Insurance Transactions Tax.
Notes: The money gained from all transactions (including those based on foreign currency) in the context of housing finance carried out by housing finance institutions are exempted from Banking and Insurance Transactions Tax.
Notes: The premiums gained by banks from selling their stocks above their nominal values during their establishment and capital increases are exempted from Banking and Insurance Transactions Tax. Moreover, investors of banks' mortgage securities are exempted from income tax.
Notes: The premiums gained by banks from selling their stocks above their nominal values during their establishment and capital increases are exempted from Banking and Insurance Transactions Tax. Moreover, investors of banks' mortgage securities are exempted from income tax.
Notes: The premiums gained by banks from selling their stocks above their nominal values during their establishment and capital increases are exempted from Banking and Insurance Transactions Tax. Moreover, investors of banks' mortgage securities are exempted from income tax.
Notes: The premiums gained by banks from selling their stocks above their nominal values during their establishment and capital increases are exempted from Banking and Insurance Transactions Tax. Moreover, investors of banks' mortgage securities are exempted from income tax.
Notes: The title deed transfer charge is a 2% tax levied on the sale of real property. This charge is payable by both buyer and seller separately
Notes: The typical payment-to-income ratio is 30-40%
Notes: The typical payment-to-income ratio is 30-40%
Notes: There are companies which sell default insurance. However, this sub-market is not efficient
Notes: There are companies which sell default insurance. However, this sub-market is not efficient
Notes: There are no such intermediaries in Turkey
Notes: There are no such intermediaries in Turkey
Notes: There is a subsidy framework for urban regeneration projects in Turkey. Moreover, a newly issued regulation also offers some level of subsidies for first time buyers
Notes: There is a subsidy framework for urban regeneration projects in Turkey. Moreover, a newly issued regulation also offers some level of subsidies for first time buyers
Notes: Variable rates are allowed but do not apply in practice
Notes: Variable rates are allowed but do not apply in practice
Notes: Variable rates are allowed but do not apply in practice
Notes: Variable rates are allowed but do not apply in practice
Notes: Variable rates are allowed but do not apply in practice
Notes: Variable rates are allowed but do not apply in practice
Notes: Variable rates are allowed but do not apply in practice
Notes: Variable rates are allowed but do not apply in practice
Notes: Variable rates are allowed but do not apply in practice. Data found under "Consumer Loans" tab.
Notes: Variable rates are allowed but do not apply in practice. Data found under "Consumer Loans" tab.
Notes: Variable rates are allowed but do not apply in practice. Data found under "Consumer Loans" tab.
Notes: Variable rates are allowed but do not apply in practice. Data found under "Consumer Loans" tab.
Notes: Variable rates are allowed but do not apply in practice. Data found under "Consumer Loans" tab.
Notes: Variable rates are allowed but do not apply in practice. Data found under "Consumer Loans" tab.
Notes: Variable rates are allowed but do not apply in practice. Data found under "Consumer Loans" tab.
Notes: Variable rates are allowed but do not apply in practice. Data found under "Consumer Loans" tab.