Mortgage and Property Financing in Turkey

Türkiye provides numerous financing options available for home purchases. Bank loans are the first option for purchasing real estate in Turkey. As a foreigner, you do not need to be a Turkish citizen or resident to get a mortgage to buy a home in Turkey. Turkish banks provide different types of home loans that can be repaid over a period of time, typically between 10 and 20 years.

Alternatively, real estate developers offer installment payment plans, particularly for newly constructed homes. You can make monthly payments after making a specified down payment, usually spread out over a number of years.

Here will focus on getting a mortgage in Turkey. It will go over the specifics of how much you can take out, the terms, and the expenses.

What are the benefits of getting a mortgage in Turkey?

The procedure is, first of all, incredibly quick, secure, and simple. You can easily explain your concern as most Turkish banks have English-speaking staff. As the most essential factor, there is a high rate of mortgage approvals for foreigners. Especially if you work with experts, they point you on the right path and make sure you do not go on an adventure that will not work out well.

Moreover, the length of a mortgage might also be highly individual. A mortgage can be taken out for a minimum of 3 years or for 10 or 20 years. That’s why investors can have a great deal of flexibility. Also, you do not need to take out extremely huge loans because real estate prices are not very high in Turkey.

Well, are there any risks of getting a mortgage in Turkey? Banks protect all of your rights, but there is a chance that the mortgaged property could be lost if the borrower does not make payments on time. For this reason, the banks look up your credit history as well. Applying for loans to buy property in Turkey will require you to have good credit, just as in any other country.

What are the interest rates and repayment terms for mortgages in Turkey?

The interest rates on the Turkish Lira vary from 12% to 20% annually. Interest rates on foreign currencies can range from 5% to 10%. Banks provide you with a mortgage in the same currency as your income. Those who get their income in foreign currencies are eligible for loans in USD and EUR as well.

The maximum amount of a mortgage to buy a property in Turkey is 65% of the appraised value of the property for EU member countries, Norway and Switzerland citizens, and 50% for other countries.

Regarding maturity, banks differ in their practices. While the maximum loan period varies depending on the bank, it is available for a maximum of 240 months.

What are the requirements for obtaining a mortgage in Turkey?

If you are buying a house through a company, having the company's lawyer or real estate professional on your side will make the entire process much easier. If you are handling everything yourself, it is advised that you work with a legal counsel who speaks Turkish and is familiar with the procedure. This is because you will need to demonstrate to the bank your eligibility for a mortgage. Important things to consider both before and during the mortgage application are:

• The person purchasing the property should visit the bank to apply for a mortgage.
• You should examine the property's current legal status at the title deed office.
• You should ensure that there are no ongoing mortgages or pledges on the property.
• You should check the building permit.
• You should check whether there is any “İskan ruhsatı” or a “Yapı Kullanım İzni”.
• You should find out about local taxes and service costs.
• The local civil employee of the Office of Land Registry may request that you use a translator during the transfer and registration process to make sure you understand all the information.

You must submit an application with the required paperwork for a mortgage in Turkey for foreigners after reviewing these. Documents differ based on the banks. The following are commonly requested:

• Application form
• A photocopy of a passport or residency permit that includes the applicable person's foreign residence address
• Title deed document
• Formal tax declaration for the previous year, to be obtained from the buyer’s home country
• Latest quarterly payroll signed by the employer abroad (for working people) or retirement letter (for retired people)
• Bank statement for the most recent six months
• Official document certifying personal assets
• Copy of an invoice (water, electricity, etc.) proving the address of the buyer

It is possible to request further documents. Moreover, notary permission and translation services might be needed. The fees associated with getting an overseas mortgage in Turkey vary based on the banks. It is not possible to provide a specific price.

How can I find a good mortgage lender in Turkey?

TEKCE helps you with every step of the mortgage process, including the additional steps that may arise, with a team of lawyers and real estate experts who are knowledgeable about bank transactions.

TEKCE launched the TeleMortgage system as a result of its considerable success in this area and positive returns.

TeleMortgage is an innovative solution that bridges the gap between buyers and their dream overseas properties. In a short amount of time, the TEKCE team completes all procedures on your behalf with the power of attorney. As a result, you do not need to travel or visit banks to conduct transactions.

Alternative Financing Options for Buying Property in Turkey: Purchasing a Home in Installments

There are several property financing options for purchasing a home in Turkey, including both interest-free and interest-based choices.

Many construction companies offer attractive installment opportunities, especially for properties in the project or construction phase. With this method, it is typically possible to become a homeowner by paying a 20-40% down payment, followed by 24-60 monthly installments. Some new developments also offer appealing plans such as zero down payment and interest-free installment options. Government-backed projects provide even more favorable conditions.

The installment plans are applicable to both Turkish citizens and foreign nationals. Additionally, foreign buyers can still obtain Turkish citizenship, even if they buy the property via installments, if the property is worth at least USD 400.000.

You can visit our dedicated page to explore all the properties in Turkey with installment plans.

Interest-Free Financing Companies, Construction Firms, and Housing Loans in Turkey

Non-interest financing companies provide alternative models that allow buyers to purchase a home in installments without the need for a bank loan. These programs can offer significant financing amounts for property purchases, and offer low or no down payments, affordable monthly installments, and commission-free credit card payment options.

Profit-sharing principles are applied in many of these financing programs, providing an interest-free banking system. This allows more individuals to become property owners at more affordable prices and with easier payment terms, while remaining aligned with Islamic practices.

TOKİ Social Housing Programs

TOKİ social housing programs are designed to assist low- and middle-income families in becoming homeowners by offering affordable prices and favorable terms. With government support, these projects typically require a down payment of just 10% and provide installment plans of up to 240 months (20 years). Homes are usually delivered within around 36 months, making these projects ideal for families wishing to move in quickly.

The payment plan of TOKİ projects is updated according to a single-index payment system, meaning that installment increases are based solely on the Domestic Producer Price Index, rather than multiple factors. This approach makes the payment plan more predictable.

Emlak Konut – Yeni Yuvam Model

The Yeni Yuvam Model, developed in cooperation with TOKİ and Emlak Katılım, offers an advantageous financing option with no interest, no down payment, no interim payment, and with installments of up to 60 months.

In this model, the buyer pays 50% of the property price to Emlak Konut in 60 installments, and the remaining 50% to Emlak Katılım Savings Financing Company in 30 installments. The program comprises 23 prestigious projects located in İstanbul, Antalya, and Balıkesir.

Important Notes

When purchasing a home with installment plans in Turkey, choosing the right company and seeking professional assistance is essential. Both the sales agreement and the installment contract should be reviewed by legal experts.

To benefit from some of the financing options, you must have a stable monthly income and be able to document it. Your credit score plays a significant role in bank-based financing, and securing a guarantor can help strengthen loan applications.

You can always get in touch with TEKCE experts for more info about property financing and mortgages for foreigners in Turkey.

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