13.03.2025 12:20
Mortgage-backed home sales in Turkey increased by 127.3% in the January-February period compared to the same period last year. While these figures indicate a revival in the housing sector, they also paint a negative picture regarding the increase in the number of people unable to repay their debts while trying to buy a home with bank loans.
The Turkish Statistical Institute (TÜİK) has announced the latest data on housing sales figures across the country. The highest increase among sold houses was observed in mortgaged houses. The increase rate reached 90% on an annual basis, and a 127% increase was recorded in the comparative data of the last two months.
127% INCREASE IN MORTGAGED HOUSING SALES
In Turkey, mortgaged housing sales in February increased by 90.1% compared to the same month of the previous year, reaching 16,778. The share of mortgaged sales in total housing sales was 14.9%. The mortgaged housing sales that occurred in the January-February period increased by 127.3% compared to the same period of the previous year, reaching 33,504. In February, 3,956; in the January-February period, 7,812 mortgaged housing sales occurred as first-hand sales.
WHAT IS A MORTGAGED HOUSE?
A mortgaged house is a property that has a mortgage placed on it by a bank or financial institution. A mortgage refers to the process of securing a real estate (usually a house or land) as collateral for a debt. A mortgage means that if the debt is not paid, the bank or credit institution has the right to sell the property after a certain process to collect the debt.
HOW DOES A HOUSE BECOME MORTGAGED?
- When a person wants to obtain a housing loan, the bank or financial institution requests a guarantee when providing this loan.
- As this guarantee, the property for which the loan is taken is placed under mortgage.
- As long as the loan debt is not fully paid, this mortgage remains on the property.
- When the entire debt is paid, the mortgage is lifted, and the property fully transfers to the borrower.
If the borrower delays or fails to make loan payments, the bank has the right to collect its debt by converting the mortgage into cash. This usually occurs through the foreclosure sale of the property. Therefore, caution is required when purchasing a mortgaged house or conducting transactions on such a property.
Many people take advantage of banks' housing loan opportunities to experience the comfort of homeownership. However, at times, due to financial difficulties or various reasons, you may feel the need to sell your mortgaged house. In this case, it is important to be informed about the sale of the house purchased with a bank loan and under mortgage. Questions related to the mortgage and ways to check whether a house is mortgaged are also critical in this process.