Home Loan From Turkey’s Banks (Mortgage)

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There are many reasons for owning  a real estate in Turkey. The purpose of buying a property is not just for a summer holiday, but at the same time is a huge investment opportunity. This is because Turkey has become one of the largest real estate markets in the world. Especially for those who are  interested in owning or investing abroad.

Turkey is currently one of the most attractive destinations in the Mediterranean coast because of its nature, weather and history. Therefore, the Turkish government is encouraging foreign real estate investments in order to revive this sector and contribute to its prosperity. This is reflected in the opportunity of financing and loans became available to non-resident foreigners in Turkey.

In 2007, Turkey adopted the mortgage law. Until 2007, there was no possibility to buy an apartment in Turkey by installments through the mortgage loan to foreigners as well as to Turkish citizens. In general, the principles of obtaining a mortgage in Turkey are no different from the mortgage loan rules in the most advanced countries in this regard such as Spain or France. However, the process may take longer.

How easy is it to get a mortgage from a Turkish bank? What are the requirements for obtaining a mortgage in Turkey? The answers to these and other questions will be found in this article.

The size of the mortgage loan you can get

The maximum possible loan amount is 70% of the purchase amount. While the mortgage loan can only be obtained in major cities such as Istanbul, Alanya, Antalya, Bodrum, Aydin, Izmir, Dedim, Kusadasi, Mugla etc. However, foreign buyers usually have only the interest to buy an apartment in Turkey by installments in those cities .

Interest rate

The interest rate ranges between 4.5% and 7.5%. At the same time, monthly mortgage payments must not exceed one third of the income. As for proof of your ability to pay, bank statements, employment certificates and other documents will be necessary to buy an apartment in Turkey by installment through a mortgage.

Payment terms

The maximum time to repay the mortgage loan in Turkey is 15 years. With regard to the age of the applicant, the borrower must not be older than 80 years. Age restrictions also vary from region to region and from bank to bank, depending on currency and type of property. In case of early repayment of the loan, a penalty of 2% of the amount is paid.

What documents are required to apply for a mortgage in Turkey for foreigners?

  1. The buyer’s passport, translated into Turkish and authenticated.
  2. Copy of the seller’s passport.
  3. A copy of the document affirming the right of ownership (tabu)
  4. Data sheet (provided by real estate developer).
  5. A Turkish tax number (the applicant shall apply for  Turkish tax number in the local tax department). It is also necessary for the loan applicant to open a bank account in a Turkish bank
  6. Salary statement issued by the employee.
  7. Bank statements from any bank statement showing income for the last three months
  8. Property valuation report (prepared by bank expert).
  9. Certificate of Address Verification (valid documents: residence permit, identity card or utility bill, water and electricity bills, gas and utility bills are the most common showing your name and address together.)

* In addition to ensuring your stable financial position these can be required :

  • Documents proving ownership of properties;
  • Information on other incomes;
  • Documents of the car.

The rate of failure to obtain a mortgage for foreign nationals is minimal, provided that all documents in the system are present and correct.

These are the public papers required for employees who receive monthly salaries but there are some exceptional cases such as the person who works for himself and in this case there are some changes in the requirements:

For self-employed:

  1. Company registration certificate
  2. A document showing common shares in the case of partnership
  3. Balance sheet of the company, income statement of the last two years
  4. Property deeds and licenses of vehicles owned by real estate and cars of the company
  5. Account movements provided by the company’s bank that shows cash flow of the company
  6. Annual tax return

What banks can be used to apply for a mortgage?

You can buy an apartment in Turkey by a mortgage from a Turkish bank that has signed partnership agreements with banks from your country, for example in Middle East : Ziraat Bankası, Bank Asya, Garanti Bankası and Türkiye İş Bankası In addition to Kuveyt Türk Bank.

Deniz Bank is the first Turkish bank to offer real estate loans to foreigners in Turkey. It also has more moderate lending rates. The mortgage loan can be up to 70% of the value of the property.

Deniz Bank is one of the leading banks providing mortgages to foreigners in Turkey. This makes it the most experienced bank and the best partner in making your dream of buying an apartment in Turkey by installment checks.

Advantages of Deniz Bank Turkey:

  1. Employees speak all foreign languages
  2. Competitive prices
  3. Loans up to 15 years
  4. The loan can be taken in foreign currency (USD – EUR – GBP)
  5. Cooperation with leading housing projects in Turkey.
  6. Cooperation with the real estate agencies .

Important Note: There are other banks in Turkey that provide loans of the same quality as Deniz Bank and our choice of Deniz Bank was random.

Do mortgage laws change in Turkey?

Yes, the laws of obtaining a mortgage to buy an apartment in Turkey by installments as the country’s financial policy changes and the major banks in Turkey have a big role in facilitating or complicating the process of obtaining mortgage for foreigners, you can get free advice from your real estate partner in Turkey Real Estate and get updates of mortgage laws in Turkey.

Is it advisable to buy an apartment in Turkey by installments through a mortgage.

EXTRA PROPERTY  Real Estate Group received  many questions about how to get a mortgage in Turkey and many are asking about the usefulness of these loans.

Real estate experts agree that middle-class real estate mortgages are very important because they do not have the liquidity to buy, but if you buy a property in a foreign country for investment, it varies depending on the country’s financial system and facilities provided by construction companies and government.

For the owners. You can buy an apartment in Turkey by installments over a period of one to three years backed by the construction company rather than  the bank. There are some government-backed construction companies that offer apartments in Turkey with installments of 10-20 years without interest and with an initial payment not exceeding 10% of the price of the property.

We highly recommend to buy your property in Turkey directly from the developer as most of them has flexible payment plans, rather than getting a mortgage from the bank, also we do recommend to get your mortgage  from your own country rather than from Turkeys banks, as it might be faster and easier to obtain the loan.

Resources:

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