Mortgage and Finance in Turkey

Buying a property is one of the most important investments that most people make in their lifetime! Evaluating the financing options that suit you can seem complex. Deciding whether to use a mortgage opportunity, choosing the right mortgage product, and then the payment plan that will suit your objectives, needs, and budget is as important as finding the right property.

As a foreign national living abroad you can access a wide range of Non-Resident Mortgage products whether for residential or investment purposes.

IREMWORLD has been cooperating with some quality and trustworthy Turkey’s Banks has arranged a brief overview of the mortgage in Turkey currently on offer. All of the information below is fully up to date.

Credit in Turkish Real Estate Market

A mortgage is a loan that is provided by a mortgage lender or a bank. While it’s permissible to take out loans to cover the entire cost of a property, it’s more common to secure a loan for some percent of the property value. The loan must be paid back on time. The real estate purchased stays as a guarantee for the bank.

What are the Conditions to Get a Turkish Mortgage for Foreign Buyers?

  • According to the newest Turkish Law up till 2019, a foreigner can get a mortgage from a Turkish bank ONLY with TL currency (Turkish Lira). Turkish banks do not give a loan in any foreign currency.
  • European and other countries citizens can claim a mortgage loan amount up to 65% of the value of the property.
  • The exceptions are Russians, for whom the loan ratio is 50% of the property value.
  • The value of the property is calculated according to the Property Appraisal Report settled by a neutral expert.
Documents Required for a Non-Resident Mortgage in Turkey
1. A proof of Income

for the last 2 months, showing your salary. In case you run your own business, a document from your accountant will be needed.

2. A residence Document
a certificate from the Registration Office in the home country, or a copy of a bill for electricity or telephone usage displaying the address of residency. What is important, the bill has to include the surname of the person who is applying for the loan.

All of the mentioned documents have to be either in English or translated into Turkish by a sworn translator.

What is significant, to obtain a mortgage process obviously a Turkish bank account is needed first.

Get Interest-Free Financing from a Property Developer in Turkey

Some of the construction companies provide the customer with credit possibility. We call it a payment plan. It is an advantage offered to increase the feasibility of real estate sales.

Usually, there is some down payment percentage obligated to be paid at the beginning of the transaction. It varies and depends totally on the company. If you will decide to use this kind of debt, the construction company will encumber the title deed with the remaining claim as a hypothec. At first, some of the construction companies request a down payment of 35% of the property price, others up to 70%. Later on, the rest of the amount can be paid with an installments payment plan within 12 to 60 months. Sometimes it can be less, sometimes even more. In the end, the construction company will take the hypothec off, after the full payment is done.

Advantages of Purchasing a Property with a Payment Plan:
  • Interest-free generally for one year, but it depends on the construction company
  • The interest rate is usually lower than the bank mortgage rates
  • No extra records are wanted
  • You can always complete the payment sooner than the deadline
  • Get the keys right away and pay the rest within the accepted payment plan
  • Usually, a payment plan possibility is provided for off-plan real estate, thus you can profit from this advantageous financial opportunity while waiting for your house to be completed

Frequently Asked Questions About Mortgage in Turkey

Yes, it is possible to obtain a Turkish mortgage as a foreigner in the correct circumstances. As a non-native, you should be aware of a variety of taxation and regulations that may differ from those in your home country.

Yes. A mortgage loan of up to 65% of the property’s value is possible.
There are many leading Turkish banks that are trust lenders of mortgages to foreigners.
In Turkey, anyone of any nationality can obtain a bank loan. The buyer must be at least 18 years old and have a documented source of income. Furthermore, people who previously took out a mortgage in Turkey and defaulted on their payments are no longer eligible.

No. According to the most recent Turkish law, foreigners can only receive a mortgage from a Turkish bank in TL currency since 2019. (Turkish Lira). Turkish banks do not offer foreign currency loans.

You will be needed to pay a holding deposit to secure the property (the minimum holding deposit acceptable is USD 2,000 or equivalent in Turkish Lira) and a date will be established for you to pay the full deposit, which is normally 1-2 % of the property’s selling price.
It may be more favorable for you if your home country offers lower mortgage interest rates, however, Turkey’s inflation rate is relatively high, and interest rates are higher than in most other countries.

The interest rates on foreign currencies are currently between 5% and 7%. The annual interest rates on TL are between 11 and 15 %. Banks like to provide you with a mortgage in the same currency as your earnings.

Typically, redemption periods range from 60 to 120 months. If you like, you can choose between 24 and 36 month periods.
Of course. You can use bank financing to assist you to fund the purchase of a home. Even if you buy a home with bank financing, you can receive a residence permit.

Lenders may look at the following to determine this:

  • Type of job you have
  • Age
  • History of credit
  • Income
  • Type of property

As followed:

  • Passport photocopies
  • Taxpayer identification number (The applicant shall apply to the local tax office in Turkey and get the tax number)
  • Open a Turkish bank account
  • A copy of the object’s title deed (tapu) will be purchased
  • The Property’s appraisal report ( Expert will arrange it by Bank)
  • An invoice with your native country’s address on it ( electric, water, gas, etc.)
  • Employer-signed income statement for employees
  • Income declared on bank statements (not older than 3 months)
Yes, as the country’s financial policy changes and the major banks in Turkey play a large role in facilitating or complicating the process of obtaining a mortgage for foreigners, the laws of obtaining a mortgage to buy an apartment in Turkey by installments change. You can get free advice from your real estate partner in Turkey Real Estate and get updates on mortgage laws in Turkey.
Yes, foreigners can borrow money to buy a home in Turkey. There is no requirement to open an account ahead of time. The mortgage is offered in the loanee’s major income currency, as is standard banking procedure. Euro credits, for example, are available to Europeans. Before opening a bank account, they assess your reliability based on your declarations and, if positive, open an account right away.
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Are you in Turkey now
and want to see the properties?

For arranging a property viewing in Turkey, send an e-mail a [email protected]. We will be happy to come to your accommodation/hotel and pick you up for free and non-committal viewing.