The cherished dream of many citizens is to have their own home on the seashore abroad. Turkey is considered one of the most popular destinations for real estate investors. Beautiful nature, favorable maritime climate, comfortable beaches, good service, well-developed urban infrastructure, reasonable prices attract a stream of foreign buyers every year. Living here is a pleasure! Some foreigners cannot afford to buy an apartment in one of the most popular regions of Turkey due to the lack of an opportunity to pay the full amount at once. An acceptable solution in this case is a mortgage loan.
A mortgage loan is an excellent opportunity to purchase real estate, even if you do not have the entire required amount on hand. The Turkish government has taken steps to support the real estate sector, in particular, providing a convenient option for buying a home on favorable terms. Now in Turkey you can buy real estate on mortgage terms with a reduced interest rate.
A mortgage loan for real estate in Turkey and its issuance by the country’s banks since 2007 is regulated at the legislative level. The service is available not only to Turkish citizens, but also to foreigners. A mortgage is a type of lending where the property being purchased becomes a collateral for the transaction until the loan is fully repaid.
After the opportunity to obtain a mortgage appeared in the Republic of Turkey, the demand for housing increased significantly. In particular, foreign citizens received an additional opportunity to purchase expensive real estate. Loan funds are issued not only for finished objects, but also for those under construction, so it will not be difficult for the buyer to choose the most optimal option for himself in terms of price, location, area, content.
What are the conditions for a mortgage in Turkey for foreigners?
Mortgage lending conditions for foreigners in Turkey differ from bank to bank.
Here is some of them:
There is no limit on the amount of the loan.
Interest rates in Turkish banks for mortgage loans are in the range of 5.5 – 9% in dollars or euros, 14% in Turkish lira, which is quite advantageous compared to many countries in Europe and the CIS. To date, banks lend only in lira, except for Kuveyt Turk. You can get detailed information by contacting our company NESTIN PROPERTY.
Loan term – from 1 to 15 years.
The loan rate is fixed for the entire maturity.
The down payment is approximately 40-60% of the appraised housing price.
The minimum loan amount is 10,000 euros, the maximum should not exceed 50% of the real estate appraisal.
The age of the borrowed foreigners is from 21 to 65 years old (meaning that the borrower should be no more than 65 years old on the date of completion of the loan payment).
The amount of the monthly payment cannot exceed 40-50% of the declared income of a foreign citizen.
In case of early repayment of a mortgage loan in Turkey, a penalty is provided in the amount of about 2% of the remaining amount.
The bank carries out an expert appraisal of real estate for which the client pays. As a rule, the amount of the assessment does not exceed 150 euros.
The cost of obtaining a mortgage loan in Turkey is about 2%, in addition to the cost of an expert assessment and an insurance policy against earthquakes DASK.
After submitting an application to the bank and a positive response, the offer remains valid for the client for 4 months (no more). If the buyer does not use the lending service during this period, he will have to go through the entire procedure for registration, including costs, anew.
Stages of registration of a mortgage and the documents required for this
To buy an apartment in Turkey on a mortgage
You will need to collect a package of documents, which includes:
A copy of the passport, certified by a notary office.
A copy of the certificate of ownership of the property (TAPU), which will be used for the sale and purchase agreement.
Certificate from the employer about the received wages.
Information about receipts to a bank account for the last three months.
Credit history from the bank.
Papers confirming the ownership of real estate in your state.
All listed documents must be translated into Turkish and certified by a notary office. Application forms filled in at the bank are attached in duplicate. At its discretion, the bank may require additional documents.
How to get a mortgage in Turkey?
The buyer has to go through several main stages:
Choose real estate in Turkey on credit.
Deal with the conditions offered by Turkish banks and choose the most suitable lending for yourself, collect the necessary package of documents. It is important to understand that the conditions for obtaining credit funds will differ in different institutions, so it is worthwhile to study this issue in detail and in advance.
Obtaining an individual tax number at the tax office at the location of the property.
After agreeing on all the conditions with the banking organization, the buyer fills out an application, thereby starting the registration process.
Appraisal of an apartment bought on credit. This is a paid service for which a specialist from the bank is invited to the facility. The entire process of assessing and issuing a document on the results of work takes about three to five working days.
After the application is approved by the bank and the letter of guarantee is issued, the client must make an initial payment for the property, pay the registration fee and sign the loan agreement. Also, at this stage, loans are issued for the purchase of property (as a rule, the money goes directly to the seller’s account).
The real estate acquired on credit is registered to the new owner, while the mortgage encumbrance for the loan repayment period is recorded in the TAPU. The buyer has to go through several main stages.