How to get a mortgage to buy real estate in Turkey?
When you consider buying a property, financing is an important matter. Banks make it easier with their mortgage opportunities. Turkish banks supply mortgages to loanees up to 75% of the property value. The property value is audited by a sworn appraiser according to SPK (Turkish Capital Market Authority) regulations.
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 and to Turkish citizens. The principles of obtaining a mortgage in Turkey do not differ from the mortgage loan rules in the most advanced countries such as Spain or France. However, the process may take longer.
Is it easy to get a mortgage from a Turkish bank? What are the requirements for obtaining a mortgage in Turkey?
All the questions in your minds are answered through this article.
The amount of the mortgage loan a person can get
The maximum 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.
Banks to Get a Mortgage Loan From
Most of the banks in Turkey supply mortgages for foreigners. However, take interest rates into consideration before making your decision. Our agents will guide you to the best options of the day, checking the current interest rates for you.
What are the required documents to apply for a mortgage in Turkey?
The buyer’s passport, translated into Turkish and authenticated.
Copy of the seller’s passport.
A copy of the document affirming the right of ownership (tabu).
Data sheet (provided by real estate developer).
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.
Salary statement issued by the employee.
Bank statements from any bank statement showing income for the last three months.
Property valuation report (prepared by bank expert).
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.)
What are the interest rates for a mortgage loan in Turkey?
If you are a foreigner and earning in foreign currency, you can receive USD and Euro loans. The interest rates of foreign currencies are between 5% and 7%. Turkish Lira interest rates are between 11% and 15% annually. Banks prefer to supply the mortgage in the same currency as your income.
What are the procedures of getting a mortgage loan in Turkey?
Once you choose your property and get the documents ready, you apply for the mortgage at the bank. The bank will send you a preliminary approval within about 3-4 days. Afterwards, the bank will send their expert to the aim property for approximate market price evaluation. Following the expert assessment, your mortgage will be approved and we move on to the next step, title deed conveyance process.