1. Mortgage definitions
If you are a foreigner looking to buy a property in Turkey and you don’t know how to get started or where to start, you are in the right blog. Here on this page, we provide you with valuable information and do our best to answer any of your questions.
Mortgage Definition: A mortgage is simply a “loan” you can get from a bank. In this case the bank is the “mortgage lender” who can help you buy a property. You must have property that you can use to secure a loan to get money. Not to mention that you have to pay off your debts on time.
Difference between mortgage and home loan: The only difference between these two is just the interest rates. The home loan has a constant interest rate, while a mortgage offers tax breaks by guaranteeing the property for the purchase of an asset.
Who are the lenders and mortgage lenders? The mortgagee is the debtor and the homeowner, while the lender is the bank, mortgage lender and mortgage lender.
2. Can a foreigner get a mortgage in Turkey?
This part is dedicated to the possibility for a foreigner to obtain a mortgage in Turkey. Go on.
Yup! A foreigner can take out a mortgage in Turkey to buy a property.
The easiest way is to just visit Turkish Banks!
Mortgage rates: in fact, interest rates depend on the bank. Feel two different interest rates; variable and fixed interest rates. The fixed rate is popular with Turkish citizens and foreigners. Of course, most mortgage borrowers prefer fixed rate mortgages to ensure that interest rates don’t change or rise.
Maximum time to repay your debts: In Turkey, you have a maximum of 15 years to repay your debts; However, make sure you pay it in 10 years.
3. Procedure for obtaining a mortgage in Turkey
This section provides more information on the standard procedures for obtaining a mortgage and buying a property.
You must be under 70 to get a mortgage.
Having an apartment or house is a great investment as Turkey is one of the largest and cheapest property markets and offers higher returns than many other countries.
Nonresident Aliens: Certainly there is a nonresident alien mortgage provided you have to show that you will repay via your bank statements, certificates of employment and the like. Of course, all conditions depend on the region, bank, currency and type of property you want to buy.
What are the requirements to apply for a mortgage?
Have a clean credit history, which means rent, loans, and credit card payments should all be clean.
Foreigners can get mortgages in TRY and other currencies like USD, EUR, GBP etc.
In Turkey you can get a mortgage for a minimum of 3 years and a maximum of 10 or 20 years. And you certainly can get a mortgage loan in many cities; Please check with the banks listed in Part V.
4. How much mortgage can you take out in Turkey and how to repay it?
Here in this part we answer how much money you can borrow, how to pay off your debt and how to prepare your questions.
How much you can borrow The maximum LTV (loan-to-value) amount for foreigners is 70%. So if you want to buy an apartment worth TRY 100,000, the bank will lend you a maximum of TRY 70,000. However, some banks generally leave the maximum around 65% of the LTV.
How do you pay your mortgage in Turkey? Once you get the loan, you have to pay it back. Period. You can pay off your debts in monthly installments from a Turkish bank account. You can also pay in cash or at a bank in your home country.
You must always pay your mortgage debt on time; Otherwise, a penalty of 1% to 2% may apply.
Important tips for paper preparation:
- The loan agreement must be drawn up in the client’s native language or translated and signed.
- The client’s spouse must also accept the contract if he is married by signing another document.
- You can apply for your mortgage at least a month or two in advance to speed up the process. Online banking is usually faster.
- After submitting the required documents, the bank will carry out a credit check. After approval, the bank then carries out a valuation and appraisal of the property, which can take a few days.
- The bank then confirms the loan offer, which remains valid for four months if things go well.
- The bank also carries out the examination of the title deed.
Hopefully, you will need to sign the formal deed of sale (Tapu) and mortgage at the Tapu office.
Documents required including but not limited to:
- The borrower’s passport
- Copy of passport of the seller/owner of the property
- The title deed to the property
- Real Estate Developer Datasheet
- Turkish tax code
- Pay stub, pay slip or income from the last 3 months
- Bank receipts/bank account history
- Property Valuation Report
- Certificate of address verification/invoices in your country of residence, documents proving ownership,
- Information about other income and documents related to the car you own.
5. Which bank is best for a mortgage loan in Turkey?
As a foreigner, if you have a residence or work permit, you can definitely apply for a loan in Turkey to buy a house, a vehicle, etc. Each bank may have different agreements, payment schedules, policies, interest rates, fees charged, and rules. This part is dedicated to the bank, from which bank you can get a mortgage/loan and more.
Some of the banks including Ziraat Bankasi, Garanti Bankasi, Türkiye Is Bankasi, Kuveyt Türk Bank, Deniz Bank, ING Bank and Yapi Kredi Bank etc. lend mortgages to foreigners in Turkey.
- Turkey Finance Bank offers a 12-year payment plan with reasonable profit rates and attribution fees. Up to 75% of the appraised value of the home to be purchased is financed. The valuation of the property is carried out by independent companies authorized by the Capital Markets Board (CMB).
- Guarantors BBVA Bank offers fixed and variable rate mortgage options in various currency options such as: B. TRY, USD, EUR and GBP. The maximum loan term is 240 months. The maximum loan amount is TRY 500,000 or the equivalent in foreign currency. Citizens of EU countries can borrow up to 65% while non-EU countries can get up to 50% LTV.
- HSBC Bank offers extended repayments up to 10 years in TRY. The minimum loan amount is 5,000 Turkish lira and the maximum is 65% LTV. HSBC requires the customer to pay a deposit of 35%.
- Deniz Bank offers moderate mortgage lending rates up to 15 years at 60% LTV. They also apply installment checks in foreign currency options, e.g. H. USD, EUR, RUB and GBP.
