The Development Of Mortgage Sector In Turkey

The mortgage sector, which grows up rapidly all around the world, also entered in a serious improvement process in Turkey in March 2007 with the issuance of the “Mortgage Law”. The effect of the law is that the demand of purchasing property increased and the mortgage sector went a step further. Consumer loans in Turkey also increased in parallel with the growth of the mortgage loans. The total consumer loans’ volume reached 172.693 billion TL in the middle of February 2011; while it was 91.353 billion TL in 2007 and it has a 89,04 % growth rate. Comparatively, in 2007 the mortgage loans, that had a volume of 30.823 billion TL, formed 33,74% of the total consumer loans and in the middle of February 2011; the mortgage loans had a 92 % growth rate, formed 34,27% of the total consumer loan sand its volume ascended to 59.188 billion TL. With the growth of the demand of the mortgage loans, Banks started to play an active role. The volume of the mortgage loans of the public, private and foreign banks, which are categorized according to their capital, was 42.543 billion TL in 2009 and in the middle of February 2011, it reached to 59.188 billion TL. Between 2009 and 2011, the volume of the mortgage loans raised 16.645 billion TL and the growth rate became 39,13%. In the middle of February 2011, the public banks’ mortgage loans volume was 17.409 billion TL, while it was 11.921 billion TL in 2009 and the growth rate was 46,04%. Furthermore, the volume of the private banks’ mortgage loans was 19.769 billion TL in 2009 and it increased 43,06 %and became 28.281 billion TL. In addition to that, the growth rate of the mortgage loans in foreign banks was 24,31 % and the volume raised to 13.493 billion TL from 10.854 billion TL between the years 2009 and 2011. The new regulations also gave ability to start residential financing companies like correspondent lenders and financing organizations. DD mortgage - A joint venture of one of Turkey’s biggest corporations Dogan Holding and one of the world’s biggest banks Deutsche Bank, was established on 2008 with an approval from BRSA ( Banking Regulation and Supervision Agency). DD Mortgage’s vision is to be one of the leading home financing corporations with high technology standards and a team of professionals with extended experience on mortgage products. DD Mortgage creates values on mortgage industry with innovative products, flexible procedures and technological infrastructure combined with experienced employees. DD mortgage is also working on secondary market products in order to improve quality and increase resources that are available for residential home loans industry.