Mortgage law can help ease account deficit
As well as helping people to buy their own homes and boost the property market, the new mortgage law in Turkey will help ease the country's account deficit, deputy prime minister Abdullatif Sener has said.
Mr Sener told Referans that by becoming asset owners and taking an interest in economic policies, the increased numbers of homeowners that will result from flexible rate mortgages will form their own type of economic control.
Additionally, Mr Sener asserted there would be "direct capital flow of over $10 billion [~£5 billion] this year", and funds flowing into the mortgage system will avoid any foreign currency shortages, easing financing of the current account deficit.
State minister Ali Babacan has also highlighted the advantages of the mortgage law in recent days, pointing to its benefits for banks and consumers.
He said: "It will diversify resource opportunities for banks and lower resource costs. The most important change with the new mortgage law is that it will allow residence credits with flexible interest rates. Interests will drop in the future and thanks to flexible interests, people will pay less interest."
Analysts expect the property market to start picking up this spring as a result of the new legislation.
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