Mortgage and its taxation

Housing is one of the basic individual requirements. At the same time itaffects the social economic activities of the individual. The economics, socialand political improvements in the world, extended the housing problems andalso made changes which produce new housing politics and solutions.Mortgage is a solution to housing. Mortgage is a housing finance system theorigins of which can be traced back to B.C., improved with industrialrevolution, ripened with financial evolutions.Today mortgage is used by different level of developed countries bydifferent applications; we saw that these countries have an institutionalfinance system and stable economies. System is built on hypothec and in theprocess of this system securitization is the main act.Mortgage depends on institutional finance system and economicstability. The governmental interference and incentives are important in thissystem. Exemptions and interferences are important for both fund suppliersand fund demanders. These exemptions and interferences are used forsystem operating.Real estate investments, in Turkey, as well as in other countries, are themost reliable investment tool. In Turkey housing finance generally does notdepend on institutional finance methods. Due to chronic inflation and lowinstitution level reasons, Turkey could not use the mortgage system.Especially in recent years, with the economic and public financedevelopments, the government has paid attention to the institutional processof house finance and they have decided to apply a new housing financesystem. Capital Markets Board Of Turkey working on a mortgage systemwhich is adapted to Turkey?s economic conditions, will be applied in thefuture.Key Words:1- Mortgage2- Securitization3- Housing Finance4- Taxation5- Sector of Housing