Nureddin Nebati, Minister of Treasury and Finance, and Murat Kurum, Minister of Environment, Urbanization and Climate Change, announced the details of the Middle Income Housing Campaign.
Some of the headlines from Minister Nabati's speech are as follows:
“Recently, we started the biggest social housing move in the history of the Republic with the project of My First Home, My First Workplace. Today, we are together to share the details of the New Home program with the new housing finance model we designed to facilitate the access of our middle-income citizens to housing.
In our culture, the house is the starting point of love and peace beyond shelter. It is a nest. With this awareness, we prepared the new home program in coordination with the Ministry of Environment, Urbanization and Climate Change. In 2016, we launched the Housing Account, which provides convenience to our citizens who will be homeowners for the first time. With this application, we provide state contribution to the participants who stay in the system for at least 3 years. In order to protect our citizens from the negative effects of the fluctuations in the housing market, we implemented the Housing Finance project last May. With the My First Home, My First Workplace project, which is the most comprehensive social housing project in the history of our Republic, we aim to build 5 thousand social housing, offer 500 million residential plots and complete 1 thousand workplaces in a 50-year period. With this project, we also facilitate the access of low-income citizens to housing.
Today, we are implementing a brand new project that will continue for a long time, especially for middle-income citizens. For our middle-income citizens, the Yeni Evim Yeni program is much more advantageous than market conditions. We have prepared the Yeni Evim program, in which we offer a payment plan compatible with the interest and profit share and maturity structure, ease of payment for the first 3 years with the contribution of our Ministry, and the income of the household throughout the loan term.
We have divided our country into 3 regions in terms of income level and general course of housing prices. Within the scope of our program, Istanbul was determined as the first region, Ankara, Izmir, Bursa, Antalya, Mersin and Muğla as the second region, and all other provinces as the third region. The financing amounts to be provided by our banks and participation finance institutions within the framework of our program are maximum 5 million liras in the first region, Istanbul, 3 million liras in the provinces in the second region, and 2 million liras in the third region provinces. The financing to be provided within the scope of our program will be for zero housing units. In order to benefit from the programs, we take into account the total income of the household. Persons who will benefit from the program should not have a house and should not have sold a house in the province where they will be housed in the last year.
In addition, it will be required that our citizens who want to buy housing in our provinces in the first and second regions must have resided in these provinces in the last year. In our provinces in the third regions, the residence requirement will not be sought. Since the purchased residences will be purchased for use, they will not be sold for 5 years. The minimum down payment rate is set at 10 percent in all regions. Profit share rates and interest rates will be applied with rates starting from 15 in financings to be provided with a maximum maturity of 0,69 years. As the Ministry of Treasury and Finance, we will undertake a certain part of the monthly installment amount that our citizens will pay in the first 3 years, provided that the loan is repaid before the total maturity of the loan. With this contribution we will provide, we will significantly reduce the installment amounts for the first three years, and thus, we will significantly lighten the burdens of our citizens while they wait for their houses to be completed.
Within the scope of our program, our citizens will be able to use loans for houses in 3 different stages: First, completed houses. Secondly, houses that have been completed at a certain rate and comply with the lending criteria of banks. The third is the houses to be built. In the first two cases, if the conditions regarding the residence and the applicant are evaluated as suitable for lending by the relevant bank, financing opportunity and our Ministry's contribution will be provided within the scope of the program.
In the third case, which covers new projects, the main criterion will be the evaluation of the housing project, of which the house is a part, as suitable for lending by our banks. In this case, in order for the project to be included in this program, the bank will have to sign a guarantor agreement with the contractor on a project basis. In this way, it will be possible to use housing loans without laying the foundation of the construction.
In this context, we will also provide access to a financing of 25 billion liras, with the Treasury-backed KGF guarantee, for our contractors, who have made guarantor agreements with banks and have committed to build houses within the scope of the Program. Another important goal of the program is to increase the housing supply in a balanced and sustainable way. Thus, it is to minimize the periodic rapid rises in housing prices in the medium term. Analysis and evaluation studies are carried out in detail by our Ministry using financial, financial, title deed and real estate advertisement site data for the real estate sector. In addition, within the scope of the fight against inflation, determinations are made specifically for those who increase the prices unfairly and sharing is provided with the relevant units. I would like to emphasize very clearly that we will not tolerate pricing other than market realities in this period when we are fighting against inflation in order to increase the welfare of our citizens.”
Some of the headlines from the Minister's speech are as follows:
“We have brought a total of 500 thousand residences, 1 million residential land and 50 thousand workplaces to our citizens and tradesmen, which we will produce with the help of our TOKİ Presidency, and we continue to draw lots quickly. We started this project with a record number of 5 million 135 thousand applications and I hope we will have finished all our drawings by March. We will complete the construction of our first 2 thousand houses within 250 years at the latest, and we will strive to finish their new homes on the promised date, as we promised our nation in every disaster, fire, flood.
Today, again, by signing a big campaign together, making positive discrimination to our brothers who do not have a home, we call our New Home with the new housing finance model, and with this campaign, we aim to make 100 thousand families homeowners in a very short time.
Our contractor companies will be included in our campaign together with the housing projects made in accordance with the criteria we have determined. Our citizens who want to buy a house will choose the apartments that are suitable for their payment conditions and apply to the branches of our banks. Our citizens will be able to benefit from finished projects all over Turkey. Likewise, they will be able to benefit from completed projects to a certain extent.
Projects of our companies affiliated to GYODER, İNDER, Konutder, İmkon and the Turkish Contractors Association, and all large and small scale housing projects produced by companies in all of our 81 provinces; they will be involved in this process if they meet the technical and financial criteria. I would also like to express this. In this campaign, our contractor companies will provide support to our citizens up to 5 percent of the price of the houses they will sell. As of January 16, our citizens will be able to follow all the developments and details about our New Home Campaign on the website we will set up.
Hopefully, with this campaign that will come to life in all of our 81 provinces; We will accelerate the return of the private sector to the housing market all over our country at the highest level. In this way, we will open the way for our construction sector to start new projects by selling the houses quickly. Hopefully, the housing projects started in 81 provinces will be completed quickly. We will both increase the accessible housing supply and further reduce the rental prices.”
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