At the moment (July 2023) the Turkish banks are not offering mortgages to our foreign clients. All the information given below is a general guide and will hopefully be valid again shortly.
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.
In general only repayment mortgages are available with loan terms of 1 to 10 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 generally offered and can only be arranged when the developer has secured mortgage finance against the development from the same bank.
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.
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.
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.
It is possible to get a mortgage on a property you already own via the remortgage product however terms are less favourable
- Most banks require you to have a bank account with them before any mortgage can be applied for.
- Joint applications are handled separately. Each party will be assessed individually for their credit rating and separate mortgage offers will be issued.
- The banks will not give mortgages 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. These properties may qualify instead for commercial credit.
- With some banks the responsibility for signing for the mortgage can be covered under the power of attorney to your lawyer.