How will the system work?

• A person will purchase a house from a contractor.
• A real estate appreciation expert will determine the value of the house.
• Insurance will be mandatory for mortgage loans. Within the mortgage system, no house will be sold or purchased without insurance.
• At least one-fourth of the price of the house will be paid in advance.
• The remaining part of the price of the house will be financed through the mortgage loans secured from banks. The customers who are currently using housing loans may request inclusion in the system by filing a petition.
• The bank will arrange a mortgage deed to be arranged for the housing loans provided.
• A mortgage finance institution will be established. The mortgage deeds issued by banks may be transferred to the mortgage finance institution.
• The banks will transfer these deeds to the mortgage finance institution in consideration for a commission.
• The mortgage finance institution will turn mortgage bonds to securities. Based on mortgage deeds, asset-backed securities will be issued.
• The mortgage investment organizations may purchase receivable-backed securities and issue them in the stock exchange. In this case, local or international investors may purchase these securities.
• An insurance system will be in place to eliminate repayment risks. In case of default for two consecutive installments, the house can be sold.