Property Mortgage Options in Turkey
Gokce, Friday, 12 December 2014
There a number of mortgage and loan options for foreigners who would like to buy a property in Turkey. The mortgage process is quite complex in Turkey due to several variables like interest rates, the amount you would like to borrow, price of the desired property, documentation issues, permissions, and many others.
Mortgage system in Turkey is relatively new and operates differently than other countries, probably different than your home country too. The average interest rates are around 6-7% and many of the Turkish banks help foreigners on mortgage issues. With correct documentation and the correct mortgage provides, your dream home in Turkey may be just a few steps away.
The process of getting a mortgage has been much easier over the years, and you may find a number of companies that can guide you through this process. Most banks offer mortgage up to 70%. A number of banks that offer mortgage are: DenizBank, Finansbank, GAranti Bank, HSBC Bank, Alternatif Bank, ING Bank, Sekerbank, Turkiye Is Bankasi (IsBank) and Ziraat Bankasi.
Mortgages are granted for buildings with a deed. It is not easy to secure a mortgage for an non-built property. By filling the application forms and providing the necessary documentation your mortgage will be put in process. Also, you should consider the possible fees you will be charged for processing the application, which also vary from one bank to another. Sometimes banks make special offers and promotions by eliminating those additional fees, which is one important research area that you should consider.
The documents that you need to submit are as follows:
All countries that have a reciprocal agreement with Turkey are eligible for mortgage application. Loans can be given in Turkish Liras, Euros, Dollars or British pounds. The interest types are fixed and early repayment in possible with possible penalty fee. Application can be made between the ages 25-70 in most banks and there is no obligation for life insurance. Off plan mortgages are also available with banks with full bank guarantee from constructor for the total loan amount.
Most banks have English speaking staff and have special loans especially designed for foreigners. You may go to the branch that is suitable for you and get the necessary information. Once you apply, the branch will inform you regarding your application and the continuation of the process.
One important decision you have to make is how much cash you will need in relation to the mortgaged amount. To give an example, you may want to pay 50% of the purchase price in cash and 50% to be mortgaged. You should be clear about the interest rates, loan terms and the money you have available. Of course, your monthly repayment cost is one important figure that should shape your decision.
You may always use a translator, or a Turkish speaking friend during the whole process as it may get complicated. Sometimes, the loan process may take longer than you expected, and it is good to have someone speaking Turkish to follow up your case. You may also have a lawyer who would follow up your application, but this will be an extra cost for you.
Always be careful about misleaders. Do your researches broadly and always apply to trusted organizations.
There a number of mortgage and loan options for foreigners who would like to buy a property in Turkey. The mortgage process is quite complex in Turkey due to several variables like interest rates, the amount you would like to borrow, price of the desired property, documentation issues, permissions, and many others.
Mortgage system in Turkey is relatively new and operates differently than other countries, probably different than your home country too. The average interest rates are around 6-7% and many of the Turkish banks help foreigners on mortgage issues. With correct documentation and the correct mortgage provides, your dream home in Turkey may be just a few steps away.
The process of getting a mortgage has been much easier over the years, and you may find a number of companies that can guide you through this process. Most banks offer mortgage up to 70%. A number of banks that offer mortgage are: DenizBank, Finansbank, GAranti Bank, HSBC Bank, Alternatif Bank, ING Bank, Sekerbank, Turkiye Is Bankasi (IsBank) and Ziraat Bankasi.
Mortgages are granted for buildings with a deed. It is not easy to secure a mortgage for an non-built property. By filling the application forms and providing the necessary documentation your mortgage will be put in process. Also, you should consider the possible fees you will be charged for processing the application, which also vary from one bank to another. Sometimes banks make special offers and promotions by eliminating those additional fees, which is one important research area that you should consider.
The documents that you need to submit are as follows:
- The bank’s application form
- Your official tax statement in your home country for the most recent year
- Copy of your passport signed and notarized
- Employer’s income statement signed by the employer
- Official document/declaration from the notary that the person who signed the income statement is allowed to sign
- Bank statement which are not older than 3 months that show your income
- Shareholder register and annual report of the company (for self employed applicants)
- Documents that prove monthly obligations such as rental agreements, loans and etc.
- Copy of private assets proven by official statements
- Copy of private debts proven by official statements
All countries that have a reciprocal agreement with Turkey are eligible for mortgage application. Loans can be given in Turkish Liras, Euros, Dollars or British pounds. The interest types are fixed and early repayment in possible with possible penalty fee. Application can be made between the ages 25-70 in most banks and there is no obligation for life insurance. Off plan mortgages are also available with banks with full bank guarantee from constructor for the total loan amount.
Most banks have English speaking staff and have special loans especially designed for foreigners. You may go to the branch that is suitable for you and get the necessary information. Once you apply, the branch will inform you regarding your application and the continuation of the process.
One important decision you have to make is how much cash you will need in relation to the mortgaged amount. To give an example, you may want to pay 50% of the purchase price in cash and 50% to be mortgaged. You should be clear about the interest rates, loan terms and the money you have available. Of course, your monthly repayment cost is one important figure that should shape your decision.
You may always use a translator, or a Turkish speaking friend during the whole process as it may get complicated. Sometimes, the loan process may take longer than you expected, and it is good to have someone speaking Turkish to follow up your case. You may also have a lawyer who would follow up your application, but this will be an extra cost for you.
Always be careful about misleaders. Do your researches broadly and always apply to trusted organizations.
Search for property and real estate for sale in Turkey. Buy cheap property in Altinkum, Bodrum, Fethiye, Dalyan, Side or Kusadasi. Houses for sale by owner or agents.
Buying a property in Turkey is a lot easier than in the UK, since all deeds are controlled and issued by the government and detailed records are kept
in the district deed office. Foreigners may purchase land and property in Turkey in their own name provided that properties are not located in a
military zone.
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