Turkish Mortgages: For Foreign Buyers of Property in Turkey

The Turkish Mortgage system came into effect in January 2007. Since then Turkish mortgages have become available for foreign buyers of Turkish property where a reciprocal agreement exists.

At this time only repayment mortgages are available with loan terms of 1 to 15 years on residential property. Finance can be arranged in most major currencies including Sterling, Euro and Dollar as well as New Turkish Lira. Mortgages may be granted for the purchase of a new property or the re mortgage of currently owned property. Off Plan mortgages are not yet widely offered and can only be arranged when the developer has secured mortgage finance against the development from the same bank.

Key Denizbank Mortgage Points:

  • Mortgage Type: REPAYMENT with fixed interest rate over the loan term
  • Loan Term: 1 to 10 years. 15 years at higher interest rate
  • Loan to Value: 50% of the banks property valuation dependent on the loan term.
  • Max Amount: No Limit
  • Min Amount: 30.000 Euros or equivalent
  • Age limitation: Minimum age of 25 and maximum age of 70 at maturity date.
  • Offer validity: 4 months
  • Early repayment penalty: 2% of the outstanding capital amount at any time throughout the loan or to close the loan early.
  • Current sterling rates are 0.7% monthly = approx 8.5% annual rate. This rate may be increased if you are remortgaging an existing property, require a 15 year loan terms or will be over 70 before the loan terms ends. It may also vary depending on the amount borrowed and the banks perception of risk factors.

Turkish Mortgage Process and Costs:

Denizbank mortgage arrangement fees cost 2% of the capital amount borrowed plus 650TL for the valuation report and 250TL in land registy fees.

Credit report

This requires completion of the banks application forms and submission of accompanying documentary evidence of salaries etc plus a credit rating report from your own country. Faxed copies will suffice with the initial application but originals must be sent before an offer is issued. Within 5 days the bank will confirm if they will lend based on your credit rating and how much.

Property Valuation

On application for a mortgage the bank will want to know which property you would like to purchase, what the agreed purchase price will be and how much you are looking to borrow (max of 50% of the purchase price would be normal) . Some documents will need to be supplied from your agent or lawyer regarding the property ownership and building status.

Mortgage Offer

Based on the credit report and property valuation a final mortgage offer is made. If you accept this offer an arrangement fee is generally charged from the bank at the time the loan is drawn down. The offer lasts for up to 4 months but can be extended up to 18 months with the payment of an additional fee.

Re Mortgage

It is possible to get a mortgage on a property you already own via the remortgage product. However the max loan term for such a mortgage is 3 years with a general ceiling of borrowing of 200,000TL.


  • Joint applications are handled separately. Each party will be assessed individually for their credit rating and separate mortgage offers will be issued.
  • When arranging a re mortgage any rental income achieved on the property will be taken into consideration in the credit report
  • The banks will not lend on any property technically classed as commercial. This may include sea front residential property as well as some ground floor apartments classified on planning as basement floor.
  • With some banks the responsibility for signing for the mortgage can be covered under the power of attorney to your lawyer.
  • If you prefer to deal through a UK based mortgage agent for Turkish mortgages you may wish to contact the following companies and advisers. These may also offer different and more flexible option with higher LTV (to 75%) and lower sterling interest rates than those we are able to source locally in the Turkish market.