Full information about mortgages in Turkey: interest rate, registration, documents

Full information about mortgages in Turkey: interest rate, registration, documents

Turkey is an economically developed country with a mild climate. It is popular among foreign citizens for both recreation and permanent residence. Every year the number of foreigners willing to buy property in Turkey is growing. The desire to purchase real estate in a resort area by the sea has various reasons. Someone wants to spend their vacation in their holiday home without a need to search for accommodation. Others decide to move to a sunny country for permanent residence and obtain a residence permit or Turkish citizenship. But what about those who do not have the required sum to purchase real estate? The answer is obvious: issue a mortgage in Turkey to buy real estate.

How to get a mortgage in Turkey for foreigners

A few years ago, foreigners could apply for a loan in almost any bank in Turkey, including real estate under construction. The loan amount accounted for up to 60% of the real estate value. At the moment, the situation has changed. Currently, you can get a mortgage in euros and dollars only in 2 banks - Kuveyt Türk and Al Baraka. The loan is also issued by Garanti BBVA, but only in the national currency - in Turkish lira.

The process of obtaining a mortgage on real estate has several stages. You will need:

  • Select a property.
  • Finalize a buy-sale agreement.
  • Get a Turkish tax number.
  • Open an account in any bank in Turkey.
  • Apply for a loan and wait for a decision from Istanbul Central Bank.
  • Agree on a payment schedule with a banking institution, and pay the registration costs and life insurance.
  • Deposit to the owner and send a request for a TAPU, a certificate of ownership.
  • Receive a TAPU with an encumbrance in the presence of a bank lawyer. Restrictive measures are valid until the full repayment of the debt.


In the case of transactions involving mortgages, not only the buyer, seller, and the sworn translator must be present at the Cadastral Office, but also a bank lawyer is required to control the transaction.

  • Pay off the loan to the seller. The money is not issued to the borrower but is transferred by the bank directly to the account of the seller, which guarantees the direct receipt of funds for specific purposes.
  • Pay off mortgage. You can repay the debt ahead of schedule with penalties of 2% of the remaining loan amount.

The mortgage process usually takes one business week. But it is better to have a few more days to spare. If for some reason, you cannot stay in Turkey for so long, it is enough for you to visit the Republic to open an account in a Turkish bank and provide a set of documents. After that, you leave a notarized power of attorney for the representative of the New Time Investment company, and our legal department will deal with the process.

Terms of mortgage lending in the Republic of Turkey

Какие условия ипотеки в Турции для иностранцев

In 2021, a mortgage is issued for a fully finished or 85% completed real estate with the mandatory ISKAN, a technical passport. It is impossible to take advantage of the opportunity to obtain a loan at the initial stages of construction. A mortgage loan is not issued for real estate less than 50 m².

The size of the mortgage is up to 50% of the real estate assessed value, which in reality is 30-40%. The monthly maximum payment threshold is no more than 50% of the borrower's official income. The down payment is approximately 60% of the total amount.

Mortgages are issued to borrowers aged 25 to 65 years. The maximum loan term for foreigners in Turkey is ten years, but it is better to shorten it not to overpay on interest.

Documents for obtaining a mortgage in Turkey

Какие бумаги нужны для оформления ипотеки в Турции
The list of documents for obtaining a mortgage loan and the mortgage terms may differ in different banks in Turkey. You will need:

  • TAPU for the purchased real estate;
  • notarized photocopy of the passport;
  • Turkish TIN;
  • certificate of salary from the place of work, signed by the employer and translated into Turkish;
  • a statement of your bank account for the period of no later than the last three months;
  • document confirming the address in the country of residence (receipt for payment of electricity, water supply, etc.);
  • credit history data from the bank;
  • documents on the ownership of real estate (if any).

If you are an individual entrepreneur or owner of a company, you need to provide the bank with a certificate stating that you hold the position of general director. The paper is issued by your chief accountant and certified by the signature and seal of the organization.

Documents brought from your country must be translated into Turkish by a sworn translator accredited in Turkey. It means that it is necessary to provide only original documents for them to be translated and notarized in Turkey.

What is the mortgage interest rate in Turkey?

Процент ипотеки в Турции для иностранцев

The mortgage term in Turkey is measured not in years but months. Therefore, bank employees report not an annual interest rate but a monthly one. If converted to annual interests, they will be about 6% per annum when applying for a loan in euros or dollars. Of course, the rate may vary slightly and change depending on the mortgage terms. If the mortgage is issued in Turkish lira, the percentage will be much higher - from 18% per annum. It is a fixed percentage that will be valid for the borrower for the entire time of payment or the mortgage amount.

Additional expenses:

  • bank commission in the amount of 2% of the amount;
  • state fee for the issuance of TAPU;
  • document preparation services:
  • a sworn translator fee;
  • state fee for the property;
  • DASK earthquake insurance.

Are you willing to buy an apartment by the sea in Turkey profitably? Contact a licensed real estate agency New Time Investment. Our specialists will accompany you at every stage of a buy-sale agreement and help you get a mortgage on real estate in Turkey on the most favorable terms.

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