Speaking to the Anatolia news agency on Sunday, Karaman said banks in Turkey have lowered interest rates on home loans following the central bank’s recent rate cuts, causing customers to flock to banks to benefit from “affordable rates.” Recalling that the amount of home loans extended by banks increased 12.5 percent in 2009 over the previous year, Karaman said banks have experienced very few problems with defaulting on home loans.
Noting that Vakıfbank increased its market share in home loans to 9.3 percent, Karaman said he did not expect further reductions in mortgage interest rates. The bank manager said banks have done their best to offer the lowest possible interest rates on home loans.
Karaman said their home loans have an average term of 72 months and are more likely to be repaid on time than other types of loans. The bank manager suggested that customers should carefully calculate the repayment conditions when taking out home loans and choose packages they can actually afford, considering in advance how much of their income will go to making their monthly payments. Recalling his bank’s efforts to increase their home loan support to their customers, Karaman said they continued to extend loans despite the global financial crisis last year and are committed to becoming one of the leading banks in the home loan market.
