Mortgage Loan for foreigners in Turkey
In this article, we will provide answers to many questions regarding mortgage loan for foreigners in Turkey.. What are the conditions for obtaining a Turkish mortgage loan for foreign buyers? Can a foreigner get a mortgage loan in Turkey? And other questions that you will find answers to in this article:
An introduction:
Turkey is one of the largest real estate markets in the world, especially for those who are interested in owning or investing abroad. Therefore, purchasing a property in Turkey is a huge investment opportunity. Moreover, having enough money to buy a property in Turkey is not necessary; any investor can obtain a real estate loan from a Turkish bank.
Mortgage loan in Turkey for Turks:
A Turkish citizen can apply for a mortgage, but the following conditions must be met: He should have a job or work and have insurance. Moreover, he should be over 18 years old. Furthermore, he should have no previous problems with the bank. And if he is married, he must bring approval signed by the wife according to Turkish law and vice versa.
After completing the transaction, the bank buys the property and sells it to the Turkish citizen by installments or directly delivering the amount to the construction company in Turkey.
Mortgage loans in Turkey for foreigners:
Foreigners can obtain real estate loans in Turkey as well as Turks without prejudice and without any difficulties through two ways:
First method to obtain real estate loans in Turkey:
It is through the construction companies in Turkey, where they sell the property in return for a down payment.
Usually, there is some down payment percentage obligated to be paid at the beginning of the transaction.
It varies and depends totally on the company.
Some of the construction companies request a down payment of 35% of the property price, others up to 70%. Moreover, the buyer can pay the rest of the amount with a payment plan within 12 to 60 months, sometimes it can be less, sometimes even more.
Second method to obtain real estate loans in Turkey:
It is through Turkish banks directly, according to specific conditions that may differ from one bank to another, which are:
Presenting a bank statement showing income for the last three months.
Submit a real estate valuation report prepared by a bank expert.
It is worth noting that the max LTV (loan-to-value) amount for foreigners is 70%. Moreover, the banks give the loan according to the real estate evaluation.
Besides, the bank makes insurance for accidents, death or emergency matters.
Also, the age of the person applying for a mortgage loan in Turkey plays an important role in determining the amount of the loan.
Furthermore, the construction completion percentage must not be less than 80% in order to obtain the mortgage.
In addition, a person can get the loan in Turkish currency, dollars or euros.
As for the payment plans, they extend from a minimum of 3 months to a maximum of 120 months. However, most banks offer mortgages to foreigners in Turkey for only 60 months.
In addition, the interest rate of the mortgage loan is determined according to the value and type of the loan.
As for the documents and papers required for the foreign person to apply for a mortgage loan in Turkey, they are as follows:
- The buyer’s passport, translated into Turkish and authenticated.
- Copy of the seller’s passport.
- Certificate of address verification (residence document).
- Tax number, income statement, in addition to extracting a record from the loan department.
The most important banks that grant mortgage loan in Turkey:
- Halk Bankası
- Vakif Bankası
- Turkish Agriculture Bank (Ziraat Bankası)
- Turkish Guarantee Bank (Garanti Bankası)
- Kuveyt Türk Bankası
And many other banks, and each bank has a different policy from the other regarding real estate loans and others.
Turkish government support for foreign investors in real estate sector:
Many investments in Turkey are being addressed constantly, in order to encourage the foreign investors and strengthen the Turkish economy.
Moreover, the Turkish government is seeking to attract more foreign investors to its markets, through various forms of incentives.
Turkey grants real estate loans for foreign investors with facilities in the payment plans within the conditions specified by the Investment Department.
Taking into account that the financial support and mortgage loans are just available in some major cities in Turkey, such as Istanbul, Ankara, Bursa, and others.
Advantages of a mortgage loan in Turkey:
One of the most prominent advantages of real estate loans in Turkey is that some loans provided by the Turkish government to investment companies are without interest, as a kind of incentive and encouragement for investments in Turkish lands.
It is worth noting that Ebla Real Estate offers services in Bursa regarding real estate loans in Turkey:
Ebla Real Estate Company in Bursa provides the valued clients with a lot of real estate offers in Bursa at competitive prices, whether in cash or in installments.
In addition, Ebla provides many legal and advisory services regarding mortgage loans in Turkey.
Additionally, Ebla Real Estate in Bursa can assist the clients and investors to establish an approved company to facilitate purchasing real estate, obtaining bank loans and investing in Turkey.
Thus, we hope that we answered the most important questions related to mortgage loans in Turkey and explained how to obtain them.
In addition, we talked about the required conditions and documents of the loans and the most important advantages that Turkish real estate loans provide.
We note that the terms and conditions related to real estate loans in Turkey may change at any moment due to economic conditions.
Edited by: Ebla Group Real Estate
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