Obtaining a real estate loan in Turkey

Perhaps it would be unreasonable for many if we say that a mortgage can be obtained in Turkey since obtaining an apartment in Turkey is the basic dream for every person, obtaining a property in Turkey was unimaginable about 15 years ago!

To move the real estate market in Turkey on the basis of cash purchases and no one will consider applying for a mortgage in Turkey. However, with the Turkish economy growing rapidly in the early 2000s, and with the implementation of the new financial regulations, it allowed Turkish banks to provide local mortgages and then granted the loans to thousands of foreign investors interested in acquiring real estate in Turkey.

So, if you are also interested in getting an apartment in Turkey, it may be helpful to read this step-by-step guide on how to get a mortgage in Turkey

How to get a mortgage in Turkey

If the buyer is a citizen of a number of reasonable countries such as Iran, Syria, Cuba or North Korea, he is entitled to apply for a mortgage in Turkey.

Iranian citizens have the right to buy a property in Turkey and can apply for a mortgage in Turkey as of 2018 current Turkish financial and banking laws.

The documents required to apply for a mortgage in Turkey

The documents required to apply for a mortgage in Turkey vary depending on you, an employee, or an employee.

Documents required of employees;

Salary statement from your company
A statement of account for the last 6 months prior to submitting the application
Proof of residence by invoice (the date of application must not exceed 3 months)

Required documents from employers;

The company's income statement for the last two years
A bank statement of the last 6 months prior to submitting the application
Company registration and trade details including shares in the company.
Proof of residence by utility bill (application date must not exceed 3 months)
Title deeds and various proof of ownership of the assets.

Please note that the documents must be in the English language, if they are not in the English language, and they must be translated into English or Turkish when a sworn translation can be done either in your country, residence or in Turkey.

Apply for a mortgage when choosing a property

The mortgage process in Turkey operates in two parts;

Application to check if a person is eligible for a mortgage in Turkey
The funds are released as soon as the property is evaluated by the bank

It may also be a good idea to start making an initial request to confirm the bank’s approval to grant a mortgage. Once approved, it is possible to calmly start searching for a property knowing that the bank supports the foreign investor once a property is found in Turkey.

After the approval of the bank is issued

After the approval of the request to obtain a mortgage in Turkey is issued and the property is chosen, it is necessary to go and evaluate the property and calculate the value of the property (the apartment), and then the bank is given the loan at 65% of the value of the property, regardless of the agreed purchase price. And 45% is paid in installments by the buyer until the agreed price of the apartment ends.

Questions and answers about obtaining a real estate loan in Turkey

In which currency can I obtain a mortgage?

You can apply for a mortgage in Turkish lira, as well as euros, US dollars, and British pounds.

Is there a maximum age limit for applying for a mortgage in Turkey?

According to the current regulations, only those who are at least 18 years old and no more than 80 years old are eligible for a mortgage in Turkey.

Can I get 100% LTV?

No, according to the current regulations, you can get up to 65% of the permanent value.

What penalties should I close my mortgage before the end of the period (early payment)?

Yes, banks usually charge +/- 2% based on the lending amount if you close your mortgage before the end of the period.

Are all banks in Turkey offering a mortgage to non-citizens?

No, only a few select private banks give mortgages to non-Turkish. Please contact us for recommendations on the best banks to work with.

Are there Islamic banks in Turkey that offer real estate loans?

Yes, there are Islamic banks in Turkey, which we can recommend providing with non-mortgages.

Do I need to be in person to apply and get a mortgage?

No, you can also appoint a legal representative in Turkey, through a certified official power of attorney, who can apply and obtain a mortgage on your behalf. Please contact us for more details on how to apply for a mortgage with a proxy.

Can I mortgage my property?

No, current regulations do not allow you to mortgage your holdings.

Can I get a mortgage on my company registered outside Turkey?

No, the current regulations make it very difficult to obtain a mortgage for a company outside Turkey. Please contact us for details if you want to get more details about this.

Fardous Al-Hayat Real Estate has assisted more than a thousand real estate buyers abroad in obtaining the property of their dreams in Turkey. With in-depth knowledge of the market and very close relationships with many big banks in Turkey, we are pleased to provide you with more information on the ways to apply for a mortgage in Turkey.