In Turkey, mortgages have been specifically made into something that only locals can obtain easily. Local developers had to use creative ways of offering financing methods to their customers from Europe and the Americas as well as many interested investors from Asia. At the beginning of 2024, people who decided to take on a loan to buy a property still in development were able to extend repayment periods but just by a year or two which is simply not enough. Other paths to financing a purchase were simply unavailable!
In February 2024, the exclusive mortgage program for foreigners by STAY PROPERTY started taking shape. Now, we have good news. It is possible to get a mortgage in Turkey on a fully constructed property!
If you do not have enough to outright buy a property to obtain permanent residency, a solution is available! Let’s take a closer look at proposals from banks for people who want to get a mortgage.
Here are the basic conditions for a mortgage:
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A loan can be provided to buy a fully constructed property or 90% concluded property. We have suitable projects in our portfolio. They come with Tapu. You can also check out the local market for properties on sale.
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A foreigner may get a loan equal to up to 50% of the market value of the property. In Turkey, mortgages are usually less expensive in terms of down payment, but foreigners without any properties purchased previously have to pay a significant amount upfront.
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In Turkey, apartment owners enjoy additional benefits. If a foreigner and/or their close relatives own properties in the country, the loan-to-value will be reduced to just 25%.
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Loaners may repay any amount of credit prematurely but must be ready to pay a 2% commission.
Currencies and interest rates in Turkey: mortgages for foreigners in 2024
You can receive loans in US dollars or euros depending on your current residency and preferences.
Monthly interest rates depend on the overall period:
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When it is shorter than 5 years, you pay 1.15%.
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When it is longer than 5 years but shorter than 10 years, it is bumped to 1.25%.
Prices in Turkey: apartments and city units
You won’t be able to apply for anything that costs less than 80 thousand euros for a 1+1 apartment in the vicinity of Alania. Prices start at 120 thousand euro in the downtown. In Istanbul, the capital of Turkey, mortgage options are even pricier. Most available properties are in newly developed buildings.
If a buyer plans to apply for permanent residency, the target property must be valued at $200 thousand or more. The location must be appropriate for ikamet (residence permit).
When buying property to apply for citizenship, target properties must be valued at $400 thousand in total.
Documents necessary to get a mortgage approved by a foreigner
In Turkey, mortgage applicants must provide the following:
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Passport (international, you cannot use national IDs)A.
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Income statements covering the last three months, certified by a notary and with a full Turkish translation.
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A document confirming residency. It can be a utility bill or a copy of a page in your passport with relevant entries. These documents should also be certified and translated.
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Get your TIN, which is the ID for all taxpayers living in Turkey.
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Make sure to bring a valid copy of the Tapu for the target property.
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All applicants must have a local mobile plan to receive SMS messages from their banks.
Married applicants must provide additional papers for spouse and children under 18:
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The same identification document (passport).
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The marriage certificate to confirm the relationship.
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Birth certificates for children under 18.
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Proof of sponsor’s income (bank statements for the last three months).
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A written consent of a spouse to a mortgage and its conditions. The spouse must be present in person.
Note that any and all documents brought in must be notarially certified after being translated into Turkish. Also note that you must insure the home, and health, and insure against earthquakes. These are paid annually and usually set you back by 750 euros per year.
Loans also come with a commission collected for approval, processing, and evaluations. It costs roughly 1250 euro + 0.5% of the total amount of credit.
We recommend you collect everything you need before applying since both spouses must be present in person! Talk to our specialists and learn more about the documents you will definitely be thankful to have when applying to get a mortgage successfully and without any issues!
Property to buy in Turkey: apartments in Istanbul and Alania
We have several projects suitable for mortgages. We invite you to an improvised tour below.
If you are seeking a valuable investment in Turkey, real estate projects akin to the visionary Exodus Green Hill should be on your priority list. It is a full-featured, contemporary living ecosystem designed for living and having fun.
Comfortable dwellings are also liquid investments that can be made into long-lasting storages of value that happen to tick all the boxes when it comes to quality of life and safety.
The gated community of the Exodus Green Hill residence has everything you need:
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Relax in an open swimming pool.
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Let your children explore the playground.
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Get sweaty on tennis and basketball courts.
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Enjoy the convenience of central heating.
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Use unique amenities like backup generators, Wi-Fi, and satellite television.
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Also, covered parking spaces.
The cadastral value is enough to pursue permanent residency if you decide to get a mortgage for a single property. Two units will be enough to apply for citizenship. Passports will be issued to the owner, their spouse, and children under 18.
The residence is in the lively Kartal district just 600 meters away from a massive forest with developed recreational areas, springs, and lakes. When trying to find a good place to buy in Turkey, mortgage applicants must take this residence into consideration.
Call our managers today! Don’t miss out on an excellent opportunity. Banks of Istanbul and Alania are drowning in applications. Make sure to be among those who beat the competition by calling us as soon as possible and receiving in-depth answers to all your questions.