Financing/Mortgage in Turkey

Buying a home is one of the most important investments that you will make in life!
Evaluating the financing options that suit you can seem complex, deciding whether to use a mortgage, choosing the right mortgage product and then the payment plan that will suit your objectives, needs and budget are as important as finding the right property. Don’t worry too much! We are here to help.

TERRA Real Estate Ltd in cooperation with some of Turkey’s High Street Banks have compiled a brief overview of the mortgage products in Turkey currently on offer.

As a foreign national living abroad you can access a wide range of Non-Resident Mortgage products whether for residential or investment purposes. Here are some of the Generic Features that apply to most of the mortgage products on offer.

Generic Features:

  • May be taken out in TL or as indexed to foreign currency (USD/EUR/GBP).
  • The maximum term for the loan is 240 months (20 years)
  • The maximum loan amount is TL 500.000 or foreign currency equivalent.
  • EU residents, Switzerland and Norway are eligible for a loan to value of 65% of the property. For other nationals, the loan ratio is 50%.

Required documents (Notarised Turkish translation where required)

  1. Tax Identity Number (to be delivered by the local tax office in Turkey).
  2. Property Appraisal Report from the bank. Raised in underwriting process.
  3. Copy of passport or certificate of residency.
  4. Proof of Income, bank account/credit card statements, for last 3 months.
  5. Certificate from the credit record office of customer's own country
  6. Proof of Address in your country of residence, from a relevant authority. A copy of a utility bill or similar displaying address of residency or photocopy.

Fixed Rate Mortgage

Allows for a fixed monthly repayment and works well for clients working with a specific monthly budget.

Features:

  • The maximum term for the loan is 240 months (20 years).
  • The Bank's fixed interest rate at the time of issuance is applied.
  • In the case of early repayment, an early repayment fee will be levied.
  • While a guarantor is not required the banks reserve the right to ask it.
  • Up to 65% of the appraisal value can be financed through mortgage. 

Shrinking Payment Mortgage

If you want to pay higher instalments at first and lower them in the following periods, the Shrinking Payment Mortgage will be most suitable for you.
With the Shrinking Payment Mortgage, you can lower the interest burden of your loan by up to 40%.

Features:

  • The maximum term for the loan is 240 months (20 years).
  • The Bank's fixed interest rate at the time of issuance is applied.
  • In the case of early repayment, an early repayment fee will be levied.
  • While a guarantor is not required the banks reserve the right to ask it.
  • Up to 65% of the appraisal value can be financed through mortgage.

Graduated Mortgage

If you want to pay lower instalments at the earlier stages and gradually increase them in the following months, you can use the Graduated Mortgage.

Features:

  • The maximum term is 240 months (20 years).
  • The Bank's fixed interest rate at the time of issuance is applied.
  • Early repayment, 2% of outstanding amount levied as early repayment fee.
  • While a guarantor is not required the banks reserve the right to ask it.
  • Up to 65% of the appraisal value can be financed through mortgage.

Deferred Payment Mortgage

Ideal option for those with ‘100% cash flow confidence’ requiring a few months to organise and facilitate the repayments into the agreed mortgage package.

Features:

  • The interest rate can be determined as fixed or as variable.
  • While a guarantor is not required the banks reserve the right to ask it.
  • In the case that the loan payments are deferred up to 3 months from the start of the term, the loan amount issued will be a maximum of 65% of the appraisal value of the property that is the subject of the loan. In the case that the payments are deferred up to 4-6 months from the start of the term, the loan amount issued will be a maximum of 60% of the appraisal value of the property that is the subject of the loan.

Flexi-Term Mortgage

With the Flexible Term Mortgage, your instalments will stay the same even if the interest rates fluctuate. Instead of changing the instalment amount you can shorten or extend the term of your loan.

Features:

  • The maximum term for the loan is 240 months (20 years).
  • Any early payment fee will not be charged.
  • The Bank's variable interest rate at the time of issuance is applied.
  • While a guarantor is not required the banks reserve the right to ask it.
  • Up to 65% of the appraisal value can be financed through mortgage.

Document Disclaimer:
We recommend that you seek independent financial advice when considering any financial product. All of the information herein is intended as a general guide and not a detailed document of terms and conditions. Furthermore, it does not form any agreement or contract in part or full which you may enter in at a future date with TERRA Real Estate Ltd or its associated companies and partners.