The Effect of Mortgage Finance Options on Customer Preferences in Turkey

Abstract

The importance of an efficient housing finance system for every country cannot be neglected as it has its significance for meeting the demands of both the housing needs of the individuals and also the reinforcement in developing the finance, construction and the sectors related to these markets. The major reasons for being the unavailability of sources are macroeconomical and political stability in these countries, there has been a significant development in the housing finance sector of Turkey. One of the major developments is the mortgage system development along with the new Mortgage Law approved by the Parliament. The purpose of this thesis is to analyze the mortgage system in Turkey and also to highlight the factors that influence the choices and preferences of the consumers while they decide to take mortgage housing finance.

The research provides an in-depthanalysis of the preferences of the consumers with regards to the mortgage system in Turkey. The data was collected through primary source where the respondents were asked to provide their response based on 16 cards that contain a combination of available options in the mortgage markets for the consumer to choose from. The respondents were asked to rank each card according to their preferences. The cards were formed using the Microsoft Engineering tool on the excel software. The data collected was then used to perform conjoint analysis that provided an in depth information about the preferences of the consumers. The mortgage market in Turkey is getting developed day by day as more and more people in Turkey are willing to own their own residency along with the increase in the number of refugees. This has resulted in the development of the housing finance system especially the mortgage system in Turkey. Therefore, this research hassignificant importance to provide the players of the housing finance market of Turkey to know what are the preferences of the consumers are willing to take loans for owing their residency in the Turkey.