Can I get a mortgage in Turkey?
What’s the definition of a mortgage? Can foreigners get mortgage in Turkey?
Are you a foreigner looking to purchase a property in Turkey but unsure where to begin? You’re at the right place. You’ll find valuable information on this page, and we’ll do our best to answer your questions.
What does the term mortgage mean? A mortgage is a loan that can be obtained from a bank. Many call banks ‘mortgage lenders’ because they can help them buy a house.
It’s essential to have a property that can guarantee a loan. You’ve got to pay back your debt on time.
Is there a difference between a mortgage and a housing credit? There is only one difference between them: interest rates. A housing credit has a constant interest rate, while a mortgage has tax benefits because it guarantees the property.
What is the name of the mortgagor and the creditor? The mortgagor is the debtor and owner of the property, while the bank, mortgage lender, and mortgagee are the creditors.
- We’ll see if a foreigner can get a loan in Turkey. Let’s keep going.
- Yes, definitely! You can get a mortgage in Turkey if you’re a foreigner.
- You can get a mortgage from Turkish banks.
Mortgage rates vary depending on the bank.
- Interest rates come in two main types: variable and fixed. It’s the same for Turks and foreigners.
- Mortgages with fixed rates are the most common.
In Turkey, you have to pay back your debt after about 15 years, but you should pay it back within ten.
Procedures for mortgage in Turkey
- In this section, we’ll explain how mortgages and property purchases work.
- It’s a rule that you can’t be older than 70 to get a mortgage.
- The real estate market is one of the cheapest and most popular in the world so you can make a lot of money.
- You can get a mortgage even if you’re not a citizen because you can prove your financial stability with a bank statement, employment certificate, etc. When buying a property, you must check the region, the bank, the currency, and the property type.
What’s the best way to get a mortgage in Turkey?
- Paying your rent, loans, and credit card bills on time will keep your credit history clean.
- You can get a mortgage in TRY or other currencies, like USD, EUR, GBP, etc.
- Turkey allows you to borrow a mortgage for up to 20 years, with a minimum of three years. Many cities offer mortgage loans.
Turkey’s mortgage amounts and payments
- We’ll discuss how much money you can borrow, how to repay your debt, and how to prepare your application here.
- What is the maximum amount you can borrow? The loan-to-value ratio (LTV) for foreigners can reach 70%. Thus, if you wish to purchase an apartment worth 100,000 TRY, the bank will provide you with a loan of up to 70,000 TRY. Some banks limit the maximum loan-to-value to approximately 65%.
- When it comes to repaying your mortgage in Turkey, what method do you use? Once you get a loan, you have to pay it back. Make monthly payments from your Turkish bank account. Use a bank in another country if you live there.
- There’s a 1% – 2% penalty if you don’t pay your mortgage on time.
Here’s what to do:
- The mortgage contract should be in the customer’s mother tongue or translated into it.
- If you’re married, you need your spouse’s consent.
- Get the mortgage at least a month in advance to speed up the process. Generally, online banking is better.
- You have to provide documentation so the bank can run a credit check. It could take a few more days after approval for the bank to do the valuation and survey.
- You’ll get a mortgage offer for four months if everything goes well.
- Also, the bank will check the title deed.
If everything goes well, you’ll have to sign the Deed of Sale (tapu) and mortgage at the Tapu Office.
These are some of the documents you’ll need:
- Borrower’s passport
- Copy of property owner’s passport
- Property title deed
- Real estate companies’ documentation
- Turkish tax ID
- Last three months’ salary statement, payroll, or income
- Bank receipts
- Valuation report of property
- Ensure that you provide your address in your country of residence, proof of ownership of property, information about other sources of income, and proof of ownership of vehicles.
In Turkey, which bank offers the best mortgage loans?
- It is possible to obtain a loan as a foreigner in Turkey if you have a residence permit or work permit. Each bank offers different arrangements, payment plans, criteria, interest rates, fees, and rules. The article discusses the bank where you can obtain a loan or mortgage, etc.
- Ziraat Bankasi, Garanti Bankasi, Türkiye Is Bankasi, Kuveyt Türk Bank, Deniz Bank, ING Bank, and Yapi Kredi Bank all lend mortgages to foreigners.
- There’s a 12-year payment plan with fair profit and allocation fees at Turkey Finance Bank. The appraisal value of a house can be financed up to 75%. It is the responsibility of independent companies licensed by the Capital Markets Board (CMB) to perform real estate valuations.
- Garanti BBVA Bank offers fixed and variable interest rate mortgages in TRY, USD, EUR, and GBP, with a maximum term of 240 months. You can borrow up to 500,000 TRY or the equivalent in foreign currency. Non-EU citizens can borrow up to 50% LTV, while EU citizens can borrow up to 65% LTV.
- HSBC Bank offers extended repayment terms in TRY for up to 10 years. 5,000 TRY is the minimum mortgage amount, and 65% LTV is the maximum. HSBC requires a 35% down payment.
- Deniz Bank offers moderate mortgage rates for up to 15 years at 60% LTV. Installment checks are available in USD, EUR, RUB, and GBP.