Is it Possible to Get a Mortgage to Buy Real Estate in Turkey?

After Turkey has become a major destination for investors and businessmen from all over the world and specifically in the real estate market, it was accompanied by the emergence of many financial, legal and administrative solutions and facilities to encourage the real estate investment market in the country more and more, which gives the investor wishing to enter this vast field a huge number of options Outstanding.

It is no secret to anyone that Turkey has become one of the most prominent destinations in the region because of its nature, weather and history, and therefore the Turkish government is working to encourage foreign real estate investments in order to revive Real Estate in Turkey and contribute to its prosperity, and this appears in the opportunity of financing and loans available to non-residents in Turkey In order to buy a property in Istanbul or other Turkish cities, work to facilitate real estate financing operations in Turkey and buy an apartment in Turkey in installments.

Is it Possible to Get a Mortgage to Buy Real Estate in Turkey

Returning to the beginnings, there was no possibility to buy an apartment in Turkey in installments through the real estate loan for foreigners as well as for Turkish citizens, but then in 2007 the Turkish government issued and enforced laws on real estate financing in Turkey, and in general, the principles of obtaining a real estate loan in Turkey do not differ For mortgage loan rules in the most advanced countries in this area.

Under the current circumstances, and within the scope of the measures taken against the emerging Corona Virus pandemic, the rate of repayment of housing loans from banks has been reduced to 10%, where up to 90% of the housing value can be used within all banks, and a number of requests have been submitted to The Turkish Banks Association and the Banking Regulation and Supervision Agency to meet the bank credit of consumer demand, and with the liquidity provided by the Turkish Central Bank, it was intended to facilitate the terms of loans to banks, whose financing problems were solved, and in the real estate sector, the general expectations are that after the emergence of the threat of the new Corona virus, it will increase Demand real estate prices will rise, and expert advice is that it will be profitable to buy a property in this period.

What is the size of the mortgage loan that you can get?

The maximum possible loan amount is 70% of the purchase amount, while the mortgage loan can be obtained within major cities only such as Istanbul, Antalya, Izmir, Ankara, Bursa … Foreign buyers are usually only interested in buying an apartment in Turkey in installments In those big cities, the interest rate ranges between 4.5% to 7.5% and at the same time the monthly mortgage payments must not exceed a third of the income. As for evidence that proves your ability to pay, bank statements, employment certificates and other documents will be necessary to buy an apartment in Turkey in installments Through the mortgage.

Mortgage terms

  • The maximum loan to pay off a mortgage loan in Turkey is 15 years. With regard to the age of the applicant, the borrower must be no more than 80 years old, and age restrictions also differ from one region to another and from one bank to another, and depend on the currency and type of property, and in the case of early repayment of the loan A fine of 2% of the amount is paid.

  • The interest rate on the real estate loan depends on the amount and type of the loan, and a rate of 70% is given at most of the value of the real estate price as a real estate loan, according to the report of the real estate expert who will present his report to the bank or authority concerned with granting this loan.

  • An official document of the foreigner’s income must be presented to the relevant authority.

  • The highest level of a loan depends on the value of the income provided and the age of the person applying for it.

  • Payment installments are for a period of three months as a minimum, to a maximum of 120 months.

  • The loan can be obtained in Turkish lira, dollars or euros.

  • The bank makes a guarantee of accidents, deaths, or the like.

  • The readiness for construction must not be less than 80% of construction for the loan to be obtained.

  • The maximum period for handing over the title deed is three months.

The documents required for the person wishing to obtain the mortgage loan

  • Tax Number.

  • A copy of the passport.

  • A registration document related to the Loans Department.

  • A copy of an official invoice in the country of the applicant, indicating its exact address.

  • For the income document, a related tax document, bank account document for the previous three months, or credit card is shown.

Banks granting the mortgage loan in Turkey

  • Garanti: provides loans up to 1.03 percent up to 10 years of maturity and 1.23 percent up to 20 years of maturity, until the property is fully paid up.

  • QNB Finansbank: Provides customers with 1.09 percent up to 5 years of maturity, 1.08 percent up to 10 years of maturity and 1.28 percent up to 15 years of maturity.

  • HSBC: provides loans up to 10 years of maturity, at a rate of 1.40%, up to 10% of maturity if additional collateral is offered

  • Yapı Kredi: provides unpaid housing loans with a monthly interest rate of 0.99 percent.

  • TEB: Provides customers with 0.99 percent maturity up to 5 years, 1.08 percent maturity up to 10 years, and provides customers with unpaid home loans.

  • Ziraat Bankası: Turkish Agricultural Bank.

  • Türkiye İş Bankası: Turkish Labor Bank.

  • Kuveyt Türk Bank: Kuwait Turkish Bank.

If you want to know how to buy Istanbul real estate , or if you need someone to help you with the steps of buying a property in Turkey, or even if you are looking for real estate for sale in Istanbul, we are ready to help you determine your most suitable choice, and to ensure that you get the best available options What makes you profitable and saves the value of your future real estate that you wish for housing or investment in Turkey, take advantage of our guidance and advice completely free of charge, which our experts will offer you with pleasure and welcome to , contact us .