A study about importance and feasibility of mortgage system in solving the residence financing issue in turkey

Meeting the need of housing has turned into a challenge as a result of several economic and social factors in Turkey, whose need of housing has been increasing since 1950?s. Those who want to have their house tried to manage it within an uninstitutional structure under quite heavy conditions. Precautions taken by the state to this end have mostly proved ineffective. Therefore, the problem of housing has gradually reached a higher extent resulting in a complicated issue. In order to overcome the existing problem of housing, the problem of housing finance needs solving first. Thus, a new model of housing finance to be developed taking into account conditions in Turkey is needed. The mortgage system is the method that developed countries on a global world apply in housing finance. The Mortgage system developed to solve existing housing finance problems in our country will be discussed in details in this study examining housing finance systems. Some recommendations will be proposed so that the system can operate effectively, and probable gaining our economy will obtain in case of successful implementation of the system will be exploited.