Can Foreigners Get A Mortgage in Turkey?

How Does the Mortgage System Work in Turkey?

There are many options for getting a mortgage for a property in Turkey. But as with all mortgages, getting your mortgage application approved in Turkey will depend on the terms of the providers and how they view you as a buyer. In general, the principles of obtaining mortgages in Turkey are not much different from the rules of mortgage lending in the most developed countries, such as Spain or France. However, the process may take a little longer.

To get a mortgage in Turkey, you will need to provide a minimum list of required documents. Banks typically process a mortgage application within three to five days. And the mortgage term can range from seven to fifteen years (with the option of early repayment with minimal penalties). EU residents can take a mortgage up to 80% of the property value. The housing loan amount for citizens of other countries such as Russia, Ukraine, and Kazakhstan varies between 30% and 50% of the flat price in Turkey. 

If you are between the ages of 21 and 65, you can apply for a mortgage in Turkey. Loans are issued in Euro, Dollar, Turkish Lira, British Pound, and Russian Ruble. The maximum capacity of a mortgage loan depends on the terms of a specific bank. The average threshold is €250,000.

How Can Foreigners Apply for the Mortgage?

To obtain a mortgage in Turkey, you must not be older than 70 years old. You should also have a clean credit history, meaning your rental, loans, and credit card payments should all be clean. In Turkey, you can borrow a mortgage for a minimum of 3 years and 10 or 20 years at max. And for sure, there are a lot of cities and banks where you can obtain a mortgage loan.

Foreigners who want to own a house in Turkey should contact the mortgage experts of the banks and get answers to their questions. After meeting the necessary conditions, they can have a dream house in Turkey or consider it an investment with the approval of the housing loan. It should not be forgotten that when choosing a property that suits their wishes and budgets after meeting with real estate consultants or housing project experts, it is beneficial to get comments from people living near that area.

What Documents Are Required for Foreigners to Apply for a Mortgage in Turkey?

The set of required papers for both private and state banks to apply for a mortgage in Turkey includes:

1. The applicant's passport and its photocopy with a notarised Turkish translation


2. A document confirming the applicant's solvency. It can be a statement from the bank regarding the movement of funds in the current account for six months or a year. It can also be an income certificate or financial statement for the last 6-12 months for entrepreneurs


3. Proof of the applicant's address. That may be an electricity or water bill (not very old, up to six months) fine. The applicant's name and address in their home country must be indicated on this invoice. If the applicant has a residence permit and address in Turkey, he can confirm his address in Turkey


4. A Turkish tax ID number. It is issued free of charge and can be obtained from a local tax office in Turkey


5. A certificate of ownership (a title deed and its photocopy) for a property you are going to buy in Turkey

It is also recommended that you consider non-mandatory documents that can help you get bank approval for a home loan in Turkey. These documents include:

• Papers confirming the fact of ownership of the real estate, cars, land, or any other valuable property


• Documents confirming the applicant's possible income (real estate lease, pension, alimony, etc.)

Which Banks Can Be Used for the Mortgage Applications in Turkey?

Both private and state banks have an amiable mortgage policy towards foreigners. Some of the banks including Ziraat Bankası, Garanti Bankası, Türkiye İş Bankası, Kuveyt Türk Bank, Deniz Bank, ING Bank, and Yapı Kredi Bank, etc. lend mortgages to foreigners who want to obtain property in Turkey.

What Are the Mortgage Rates and Payment Terms in Turkey?

Based on the credit report and property valuation a final mortgage offer is made. If you accept the offer, an arrangement fee is generally charged from the bank at the time the loan is drawn down. The offer lasts for up to 4 months but can be extended up to 18 months with the payment of an additional fee. Here we listed the top four banks for you:

• Deniz Bank offers reasonable mortgage lending rates for up to 15 years at %60 LTV. They also apply installment checks in foreign currency options.


• Garanti BBVA Bank offers fixed and variable interest rate mortgage options in different currency options. The max loan amount is 500,000 TRY or the foreign currency equivalent of this amount.


• HSBC Bank offers extended repayments for up to 10 years in TRY. The minimum mortgage amount is 5000 TRY, while the maximum is 65% LTV.


• Türkiye Finans Bank offers a 12-year payment plan with moderate profit and allocation fee rates. Financing support is provided for up to 75% of the house’s appraised value to be purchased. The real estate valuation is done by independent companies licensed by the Capital Markets Board (CMB).

How Many Mortgages Can You Get in Turkey?

The max LTV (loan-to-value) amount for foreigners is %70, meaning that if you want to buy an apartment valued at 100,000 TRY, the bank will lend you 70,000 TRY at max. However, some banks generally keep the maximum amount at around %65 loan-to-value.