Mortgage for foreigners in Turkey

How does it work and what are the conditions now?

Since 2022, it has been almost impossible for a foreigner to get a mortgage in Turkey. Those who wanted to buy a home but did not have the full amount were only able to pay in installments without % from the developer.

But now, in the fall of 2024, foreigners can get a mortgage again. We will tell you more about the conditions, documents and the registration process in this article.

Who issues the loan and on what terms

Several state-owned banks in Turkey do provide mortgages to foreigners. The main requirement is that the borrower has 60% of the property value.

That is, banks cover no more than 40%, in rare cases – up to 45%. The processing times are reasonable: the process takes up to two weeks.

What documents are required to obtain a mortgage in Turkey:

• Foreign passport.
• Certificate of income (translation into Turkish, certified by a notary by a certified translator, is required). It can be in the form of 2-NDFL. You can present a lease agreement or a bank statement on the deposit and interest accruals.
• A document indicating the residential address (we are talking about the address in the home country) - utility bills, confirmation in the passport. A translation by a certified translator is required, but without notarization.
• Tax number.
• A copy of the title deed to the property.

Additional documents if the borrower is married

• Spouse's passport
• Marriage certificate (translation by a certified translator is required)
• An official document, translated into Turkish, confirming the composition of the family (including children, if any)
• Copies of passports of children under 18 years of age
• Consent of the spouse (the spouse must personally come to the bank and sign the document in the presence of a bank employee)

What amount can they give and at what interest rate?

The amount indicated in the income certificate must be twice the monthly loan payment. Banks, as a rule, do not conduct a detailed check, but all documents must be submitted for reporting.

The mortgage is issued for a period of 36 to 120 months, depending on the borrower’s request.

The most favorable conditions are offered for loans up to 60 months with an interest rate of 1.15% per month, or about 13.8% per annum. All loans are issued in euros or dollars.

Real Estate Requirements

The property must either be already completed (it can be either new or resale) or ready for at least 90%. A loan is not issued for housing under construction.

In the second case, you can use another option - interest-free installments. The borrower can use this tool until the construction is completed, and then take out a mortgage to pay the remaining part.

Additional costs:

When applying for a mortgage in Turkey, the borrower must also pay:

• earthquake insurance (600-1000 TL per year);
• property insurance (about 2-3 thousand TL per year);
• personal insurance (about 20 thousand TL);
• mortgage registration (approx. 1.5 thousand TL, one-time payment);
• real estate appraisal (around 10-15 thousand TL);
• Also, upon approval, a fee of 0.5% of the total loan amount is charged.

How to pay off the loan in the future - if from Russia?

Payments from some Russian banks are still being processed. You can also pay through partners – transfers in rubles are possible without interest fees, but the rate will differ from the exchange rate.

Another option is cryptocurrency, but here too you will need an intermediary – a real estate agency can help with this. It is enough to transfer the required amount to the agent’s crypto wallet, and he will then pay off the loan.

If the borrower decides to repay the loan early

In a state bank, you will have to pay a fine of 2% of the remaining amount. That is, if the remaining payment is €10 thousand, then the borrower must additionally pay approximately €200 - in different banks, the fine amount may vary slightly.

But if you want to pay off part of the loan to reduce the remaining payments, there are no problems. You need to come to the bank and write an application to reduce the monthly payment or the loan term - this can even be done by the owner himself or his authorized representative.

If you suddenly want to sell your apartment, and the loan has not yet been repaid, it is better to contact a real estate agency: it will help re-register the debt and quickly find a buyer. Otherwise, if you stop making payments, the property will be put up for auction. After the sale, the bank will take the amount of the debt for itself, and the remainder will be transferred to the client. And there is no way to influence the process.

Resume:

The mortgage interest rate in Turkey for foreigners is not the most favorable, but this is an option for those who do not have the full amount on hand, but need real estate now - for example, to obtain a residence permit. Another case: you found a property at a very attractive price on the secondary market and understand that it is more profitable to overpay for the loan, since such real estate will cost even more in the future.

There is no need to be afraid of refusal. As a rule, mortgages are not issued only to those who made mistakes in the preparation of documents.

The whole process is simple: collect the documents, give them to a certified translator, select the property and send a request to the bank to issue a loan. Once all the documents are ready, the cadastral office will place an encumbrance on the property, and the amount that the bank issues as a loan will be transferred to the seller's account. When the loan is fully repaid, the encumbrance will be removed automatically.

The buyer becomes its owner immediately after signing the contract. He can use the property, rent it out, but sell it only after the loan is paid off.

My company UPTREND HOMES offers a wide range of real estate in Alanya for rent and purchase. This is a licensed family agency that cares about each client and provides an individual approach. By contacting us you will receive privacy, security and high quality service.

We are also investors and offer our partners reliable properties with high profitability. Our management company will provide full management of your property so that you receive a stable income without unnecessary hassle.

Sign up for a free consultation on all issues.