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Mortgage loan terms in Turkey in 2020

If there is a lack of finance, you can use the mortgage lending service, which is issued by local banks in Turkey. The mortgage is issued only if the customer is ready to pay the first payment to the seller. The amount of the first payment is approximately 40-50 % of the total price of the property. The final decision on the amount of the loan is made after examining the object and evaluating its market price.

Mandatory conditions for issuing a mortgage loan in Turkey:

1. Mandatory assessment by a specialist of the objective value of Turkish real estate that a foreigner has decided to purchase with a mortgage.

2. Payment by a banking organization is made exclusively directly to the seller, that is, the creditee will not be able to receive funds on hand or to their own bank account.

3. Repayment is possible in the period from 1 to 10 years. Premature payment of the loan is fraught with a fine of about two percent.

4. Each month, the agreed amount will be debited from the current account of the creditee.

5. If you decide to take out a mortgage loan and have previously agreed on a positive decision from the Bank, the offer of the financial institution will be valid for 4 months. At the end of this period, you will have to go through the entire procedure again.

Documents for obtaining a mortgage in Turkey:

1. Passport.

2. If the client is an employee, he will need to provide a certificate of 2 personal income tax, if a private entrepreneur – a tax return, which will display income for two years.

3. Credit history from the bank.

4. Certificate from the bank about the flow of funds on the current account.

5. TAPU on purchased square meters in Turkey.

6. Conclusion about the cost from an independent appraiser.

All these documents must be in the original, and in the Republic of Turkey they are translated and notarized.

The Turkish Bank reviews the application and the collected set of documents within 5-7 days. After that, a conclusion is made on whether the Bank is ready to issue the requested amount.

The interest rate on a loan in Turkey is calculated individually. The Bank employee, after receiving input data about the purchased object, calculates the interest rate and the amount that the client will pay monthly. The interest on the loan depends on the selected financial institution and for the current year 2020, these indicators are an overpayment of about 6-7% per year. Turkish banks mainly lend in euros and dollars. Special attention is paid to the issue concerning the amount of monthly payments – the payment must not exceed forty percent of the income of the creditee.

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