Urban Transformation Finance has been generated to provide the financial support required for Housing Transformation projects started all over Turkey within the framework of the law introduced as the “Transformation of Disaster-Prone Areas”. This financing method is designed to meet the strengthening, demolition and real estate sales needs of businesses and the strengthening and demolition needs of individuals.
Project planning for buildings with a risky structure report and which are within the Housing Transformation area will be exempt from Banking and Insurance Transaction Tax (BITT). Housing construction and strengthening credits provided through housing mortgages and projects assessed within the context of commercial transactions will be exempt from Turkey’s Resource Utilization Support Fund (KKDF).
Since financing provided to meet the funding needs of real estate-owning real persons or legal entities concerns the funding of a service fee it will be considered within the context of Personal Financing and the maximum terms will be 36 months.
The maximum term of the projects evaluated within the framework of enterprise finance for the funding needs of construction companies will be 12 months.
Used in the sale of real estate and provided to construction companies in return for a fee, the financing will be considered within the context of Ongoing Construction Projects and Finished Construction Projects and its term will last a maximum of 120 months. For projects considered under the context of Urban Transformation Finance, the government provides profit support for strengthening and housing construction loans at a yearly rate of 4 basis points, while workplace construction loans are provided at a yearly rate of 3 basis points. The upper limit of the principal amount of the loan to be provided as support on an ownership basis for strengthening works is TRY 50,000, and TRY 100,000 for housing and workplace constructions.