The Housing Finance System

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A. Primary Housing Finance Market

A.1 Industry Structure and Performance
VariableEnd of 2015End of 2014End of 2013SourcesVar ID
Number of firms originating and funding mortgage loans  16A.1.1
Types of originating lenders/market share:A.1.2
Universal/ commercial banks  100% of totalA.1.2.1
Non-depository financial institutions specialized in housing finance  0% of totalA.1.2.3
Are there (quasi) public mortgage lenders:YesYesYes
Country Editor
A.1.4
Universal/ commercial banksYesYesYes
Country Editor
A.1.4.1
Other depository institutions (savings and loans/mutual savings and credit institutions)NoNo 
Country Editor
A.1.4.2
Non-depository financial institutions specialized in housing financeNoNo 
Country Editor
A.1.4.3
General non-depository financial institutionsNoNo 
Country Editor
A.1.4.4
Others (e.g. insurance co, pension funds, labor tax funds)NoNo 
Country Editor
A.1.4.5
Level of Non-Performing Mortgage Loans (90 days or more past due):A.1.6
as a % of # of loans.47% 1.6%
Country Editor
A.1.6.1
as a % of outstanding loan amount  2.17%A.1.6.2
Average 1997-2007 A.1.7
as a % of outstanding loan amount   1.13%A.1.7.2
A.2 Size of Mortgage Finance Sector
VariableEnd of 2015End of 2014End of 2013SourcesVar ID
Total amount of home mortgage loans outstanding at the end of year in millions of USD:46,227 USD (millions)49,575.43 USD (millions)47,430.95 USD (millions)
Country Editor
A.2.1
Total amount of home mortgage loans outstanding at the end of year as % of GDP (current)6.44%6.21%5.76%
Country Editor: The Banks Association of Turkey
A.2.1.1
and as % of all credits outstanding4.74%7.76%7.96%
Country Editor
A.2.1.2
Total # of home mortgage loans outstanding at the end of year438,167 thousand383,432 thousand595,771.5 thousand
Country Editor
A.2.2
Total amount of home mortgages made in calender year in millions of USD16,038 USD (millions)15,743.1 USD (millions)23,593.3 USD (millions)
Country Editor: The Banks Association of Turkey
A.2.3
and as % of GDP (current) 2.34%1.97%2.87%
Country Editor: The Banks Association of Turkey
A.2.3.1
and as % of all credits originated in calender year28.3% 7.06%
Country Editor
A.2.3.2
A.3 Housing Finance Products
VariableEnd of 2015End of 2014End of 2013SourcesVar ID
Mortgage products as % of all mortgages (approx.) in local currency:A.3.1
Fixed rate for life of loan100%100%100%
Country Editor
A.3.1.1
Variable rate/indexed0%0%0%
Country Editor
A.3.1.2
Variable rate/discretionary0%0%0%
Country Editor
A.3.1.3
Other fully amortizing loans (e.g. Rollover)0%0%0%
Country Editor
A.3.1.4
Non-fully amoritizing loans (e.g. Price level adjusted/Interest only) 0%0%0%
Country Editor
A.3.1.5
Loans based on foreign currency as % of all mortgage productsNot availableNot available.06%
Country Editor
A.3.2
Most prevalent type of foreign currency mortgage used:A.3.3
Fixed rate for life of loanNot availableNot available 
Country Editor
A.3.3.1
Variable rate/indexed   0%A.3.3.2
Variable rate/discretionary  0%A.3.3.3
Other (describe in the Notes section)  0%A.3.3.4
Most frequent interest rates on fully amortizing:A.3.4
Typical lender fees associated with mortgage origination: A.3.6
Typical third party fees associated with mortgage origination:A.3.7
Loan-to-Value (LTV) on first mortgage: A.3.8
Maximum LTV757575
Contry Editor
A.3.8.1
Typical LTV at origination757575
Country Editor
A.3.8.2
Mortgage pmt-to-income ratio A.3.10
Typical pmt-to-income ratio (Individual income)35%35% A.3.10.4
A.4 Lending and Servicing Process
VariableEnd of 2015End of 2014End of 2013SourcesVar ID
Does the mortgage industry use standard principles/guidelines for underwriting?YesYesYes
Country Editor
A.4.1
Which institutions define underwriting rules? A.4.2
Central Bank/Ministry of FinanceNoNoNo
Country Editor
A.4.2.1
Secondary market facility  No
Country Editor
A.4.2.2
Major Lender  No
Country Editor
A.4.2.3
Other  YesA.4.2.4
Are loan originations conducted by others than employees of lenders?NoNoNoA.4.3
% of Originations done by brokers0%0% 
Country Editor
A.4.3.1
% of Originations done on the internet0%0% 
Country Editor
A.4.3.2
% of appraisals done by employees of lenders  0%A.4.4
Do third party servicing institutions exist? NoNoNo
Country Editor
A.4.5
% of loans serviced by originators/lenders100%100%100%
Country Editor
A.4.6
A.5 Credit Risk Assessment
VariableEnd of 2015End of 2014End of 2013SourcesVar ID
Do credit bureaus exist? YesYesYes
Country Editor
A.5.2
Are there legal/regulatory constraints to gaining access to credit information?NoNo 
Country Editor
A.5.2.1
What percentage of mortgage originations use credit scoring?Not availableNot available100%
Country Editor
A.5.1
Is mortgage default insurance available?YesYesNo
Country Editor
A.5.3
Are credit guarantee systems used? NoNoNo
Country Editor
A.5.4
Is there public sponsored MI / guarantee?NoNo 
Country Editor
A.5.5
B. Funding Sources for Mortgages and the Secondary Mortgage Market
VariableEnd of 2015End of 2014End of 2013SourcesVar ID
What are the main funding sources for mortgages?B.1
Retail funding (deposits/other)  primaryB.1.1
Funding through mortgage bonds   Non-applicable
 
B.1.3
Funding through securitization of mortgages  Non-applicable
 
B.1.4
C. Housing Microfinance
VariableEnd of 2015End of 2014End of 2013SourcesVar ID
Are non-collateralized housing micro-finance loans offered? NoNo 
Country Editor
C.1
Types of lenders operating in the housing micro-finance (HMF) sector:C.2
Commercial banksYesYes 
Country Editor
C.2.1
Specialized non-depository MFIs YesYes 
Country Editor
C.2.2
NGOsNoNo 
Country Editor
C.2.3
OthersNoNo 
Country Editor
C.2.4
NoneNoNo 
Country Editor
C.2.5
Level of NPLs (>90 days past due) in HMFC.4
Are non-collateralized but secured housing finance products offered (e.g. secured by pension or insurance savings)NoNo 
Country Editor
C.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.