Mortgage loan in Turkey

Real estate loan in Turkey and can foreigners get real estate loans? In this research, we will provide answers to many questions regarding real estate loans in Turkey. Do Turkish laws allow real estate loans in Turkey for foreigners, and what are the conditions that must be met to obtain a real estate loan from a Turkish bank, and other questions that you will find the answers to in our following article:

Real estate loan in Turkey

Introduction:

It is not necessary to have enough money to buy a property in Türkiye; Therefore, any investor can seek the help of a Turkish bank to obtain a real estate loan. Laws also allow a foreigner to obtain a real estate loan in Turkey. But with certain conditions and procedures, most of which we will explain in this article from Ebla Real Estate in Bursa.

Mortgage loan mechanism in Turkey for Turks:

A Turkish citizen can take his identification papers, go to the bank, and request a real estate loan, but the following conditions must be met: He must have a job or business and have insurance, and his age must be over 18, in addition to that his relationship with the bank must not have been previously damaged.

If he is married, he must bring approval to withdraw the loan signed by the wife according to Turkish law, and vice versa. The real estate loan applicant may include the loan with the family income, and after the transaction is completed by the Turkish citizen, the bank buys the property and sells it to him via installments or delivery. The amount is paid directly to the construction company in Turkey.

Real estate loan in Turkey for foreigners:

Foreigners can obtain real estate loans in Turkey, just like Turks, without prejudice and without significant difficulties. This is done through two methods:

First method:

It is done through building and construction companies in Turkey... where the property is sold in exchange for a down payment, which in some construction companies may exceed 50% of the value of the property... but on the condition that the loan is repaid on a monthly basis through installments distributed over months, in a specific formula and agreed-upon arrangement.

Second method:

It is carried out directly through Turkish banks. The real estate loan transaction is carried out in the bank according to specific conditions that may differ from one bank to another, which are:

Presenting a legal document to the authority concerned with the real estate loan, proving the income of the foreigner. The interest rate accrued on the real estate loan is determined according to the value and type of the loan. What may reach 70% of the value of the property price is given as a real estate loan; this is based on the report of the real estate expert who will submit the real estate evaluation report to the bank.

It is worth noting that the highest level of mortgage loan depends on the amount of income provided.. The age of the person applying for a mortgage loan in Turkey also plays an important role in determining the amount of the loan. As for the payment installments, it extends from a minimum of 3 months to a maximum of 120 months, but most banks offer the real estate loan to foreigners in Turkey for a period of only 60 months... and the construction readiness rate must not be less than 80% in order to obtain the real estate loan... In addition therefore, the bank provides insurance in cases of accidents, death, or other emergency matters. It is worth noting that a person can obtain a loan in the Turkish currency or dollars and Euros.

As for the documents and papers required for the foreign person concerned with obtaining a real estate loan, they are the following:

A copy of the passport, tax number, income document, residence permit, in addition to an extract from the loan department.

The most important banks that grant real estate loans in Turkey:

One of the best banks for real estate loans in Turkey is Halk Bank, a government-owned bank. It has a mitigating law that stipulates that the loan owner must pay the interest payments resulting from the loan within a period that may reach up to 15 years.

One of the distinguished banks for real estate loans in Turkey is the Turkish Vakif Bank. However, it does not grant a loan of more than 250 thousand Turkish liras. In addition, Ziraat Bank grants loans worth 500 thousand Turkish liras.

The most important bank is the Ziraat Government Bank, which reduces the interest on the amount granted by a fair amount. Therefore, it is considered one of the most popular banks and has a large number of customers from inside and outside Turkey because it is considered the main government bank.

In addition to Kuveyt Turk Bank, which is most popular with foreigners in Turkey, and many other banks, each bank has a different policy in real estate loans and others.

Government support for foreign investors in Turkish real estate:

The Turkish government has allocated privileges to foreigners on the real estate and investment levels, as a form of support for the investment renaissance in Turkey... and to encourage foreigners to carry out large projects and investments in Turkish lands... Therefore, the Turkish government has allocated financial supply programs for foreigners to own and buy real estate, granting the investor... Real estate and investment loans with facilities in the payment process within the conditions specified by the Investment Department. Taking into account that financial support is specified in some major cities in Turkey, such as Istanbul, Ankara, Bursa, and others.

Advantages of a real estate loan in Turkey:

One of the most prominent features of real estate loans in Turkey is that some loans to investment companies provided by the government are interest-free, as a kind of incentive and encouragement for investments in Turkish lands... Loans provided by the government are limited to specific types of investments, and obtaining a government loan is not impossible, but the conditions required to obtain an investment loan are it is somewhat difficult.

Easy Buy Real Estate services in Istanbul regarding loans in Turkey:

Easy Buy Estate Company in Istanbul offers many real estate offers at competitive prices, whether in cash or in installments... in addition to providing many legal and advisory services regarding real estate loans in Turkey. In addition, Easy Buy Estate Company can help its investor clients in establishing... A certified company to facilitate the purchase of real estate in Istanbul, obtain bank loans, and invest them in a sound and fruitful manner.

In conclusion, we hope that we have answered the most important questions related to real estate loans in Turkey, explained how to obtain them, and explained the conditions and required documents and the most important features provided by Turkish real estate loans. We note that the terms and conditions related to real estate loans in Turkey may change at any moment due to economic conditions. The decision whether or not to approve a real estate loan in Turkey is based on the bank’s policy, regardless of the people.