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1. Definitions of mortgage terms

This blog you are reading is what you should read if you are a foreigner interested in buying a home in Turkey. You can find precious information on this blog, and we will do our most ok to address any concerns you may have.

First of all, let us start with the basic definitions to understand a mortgage.

A mortgage is a loan from a bank. Here, the bank serves as a mortgage lender, which can lend you money to purchase a home. You need a property that you can use as collateral to get money. In addition, you must repay this debt promptly.

Mortgage vs. housing credit: Interest rates are the only difference between these two. In contrast to a mortgage, which guarantees a property, a housing credit has a constant interest rate.

What is the connection between the mortgagor and the creditor? We can consider the mortgage owner as a debtor and the mortgagee as a creditor.


2. Is it possible to get a mortgage in Turkey as a foreigner?

This section aims to determine whether or not foreigners can obtain a mortgage in Turkey. Ok, let’s continue.

Definitely! Turkey offers mortgages to foreigners interested in purchasing the property.

The most straightforward approach is just visiting the Turkish banks!

The mortgage interest rates: The interest rates depend on the bank. You will hear two different interest rates: variable and fixed interest rates. The fixed interest rate is popular among Turkish nationals and foreigners. Of course, most mortgage borrowers prefer fixed-rate mortgages, ensuring that the rates won’t change or go up.

The maximum duration to repay your debt: In Turkey, you have to pay your debt back in about 15 years, yet, make sure you pay it in 10 years.

Visiting Turkish banks is the easiest way to get started!

Mortgage interest rates vary depending on the bank. There are two kinds of rates: variable and fixed. Most mortgage borrowers prefer fixed-rate mortgages because they guarantee the rates won’t change or rise. Foreigners and Turkish citizens alike frequently choose fixed interest rates.

In Turkey, you must pay back your debt within 15 years; however, we recommend paying it back within ten years.


3. The mortgage process in Turkey

We will explain here how to obtain a mortgage and buy a property.

Mortgages are only available to people under the age of 70. Turkey has a desirable and affordable real estate market that offers higher profits than many other countries. Having an apartment or house is an excellent investment.

Foreigners who are not residents of Turkey can apply for a mortgage via bank statements and employment certificates and prove their ability to repay the loan. Conditions vary according to your country, bank, currency, and type of property you wish to purchase.

To apply for a mortgage, what conditions must you meet?*

You should have a clean credit record, including renting, taking out loans, and paying credit cards. For foreigners, mortgages are available in TRY, USD, EUR, GBP, etc. Turkish mortgages could be financed for three years and ten or twenty years maximum. 


4. The amount of mortgage you can take in Turkey and the repayment process

This section discusses how much you can borrow, how you repay your debt, and what application process you should follow.

What is the maximum amount you can borrow? A foreigner can borrow up to 70% of the value of the property as LTV (loan-to-value). So, if your apartment is worth 120,000 TRY, you can borrow up to 84,000 TRY. Banks, on the other hand, typically limit the maximum loan-to-value amount to 65%.*


What are your repayment options in Turkey? 

You have to pay back the loan in the determined schedule. 1% – 2% penalties may occur if you did not pay mortgage debt on time. You can use your Turkish bank account to complete the transaction of your monthly debt payments. Paying with cash is also possible, and paying with a bank in your country.

The following tips can help you while preparing your documents:

The mortgage documents must be in the customer’s native language or translated into the customer’s language and signed by the customer. The customer’s spouse must sign a separate document if they are married. You should complete mortgage applications at least one or two months ago to streamline the process. The bank conducts a credit check once you provide the necessary documentation. It is generally quicker to do your banking online. 


The bank will then conduct a survey and valuation of the property when approved, which may take several days. The bank will confirm the mortgage offer when all goes well, remaining valid for four months. The bank will also conduct a title check. If everything goes according to plan, you must sign a formal Deed of Sale (tapu) and mortgage in the Tapu office.


So what kind of legal documents do you need in the process?

• A copy of the borrower’s passport

• Copy of the passport of the owner or seller of the property

• It is essential to have a copy of the property title deed

• Datasheet prepared by a real estate developer

• Tax Identification Number (TIN)

• Last three months’ salary statement, payroll statement, or income statement

• Receipts from the bank/history of the account

• Valuation report for the property

• Documents proving ownership of properties, information on other incomes, and certificates to verify your address and invoices in your country of residence.


Yes, in this blog article, we have given you some explanations about mortgages, and we tried to detail one of the most frequently asked questions, one of which is the mortgage. But we do not want to confuse your mind by giving you bank information. If you are interested in this matter, you can send us your questions through our communication channels. To choose suitable projects, you can get support from the professionals of our team at any time, and you can evaluate the investment tools that are suitable for you from our vast portfolio.

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