By Justin Mays:
Purchasing a property is viewed as a solid investment. Many make overseas property investments to get better value for their money.
Turkey is popular as a holiday destination for many, especially its Mediterranean region for its warm climate and serene atmosphere. The diverse property market in this country has won over many and receives foreign buyers from around the world.
If you are interested in buying a property in Turkey and need information on getting a mortgage or financial assistance for this purpose, this blog is the perfect answer. Read till the end to get answers to all your questions.
What is a Mortgage?
A mortgage refers to a loan that either a bank provides or a lender gives. This loan is borrowed to purchase a property and covers either the full cost of the property or only some percentage of the cost. Ultimately, the borrower has to pay the loan back on time.
Can Foreigners Get a Mortgage in Turkey?
Yes, a foreigner can easily get a mortgage in Turkey. To get a mortgage in Turkey as a non-resident, you have to be clear about all the rules, regulations, and taxes you will encounter.
A foreigner can get a mortgage from a Turkish bank while the interest rates differ from bank to bank. There are two types of interest rates; variable interest rates and fixed interest rates; with fixed interest rates being the most preferred among locals and foreigners since the rates do not increase over time.
You can either be present to get your mortgage or allocate the Power of Attorney to your lawyer to be your legal representative to complete the mortgage acquisition for you.
For most countries, the mortgage loan foreigners can claim is approximately 65% of the total value of the purchase. There are exceptions to this rule, though.
For Russian citizens, the loan percentage is 50%. The experts from the Property appraisal Report estimate the value of the property purchased. You will need a Turkish bank account to obtain a loan from a Turkish bank.
The high inflation in Turkey translates to higher interest rates. Your home country may offer lower rates in comparison. Research and weigh your options before applying for a mortgage in Turkey.
What Documents Are Required For Getting a Mortgage?
The documents you will require to initiate a mortgage application are::
- The Turkish title deed (or TAPU) for the property.
- Notarized photocopies of passports.
- Turkish Tax number.
- Payroll having the employer’s signature, or in case of self-employment; records possessing 2 years of financial income information.
- A bank statement for the last 3 months.
- In case of retirement; a retirement letter.
- A photocopy of a bill of water or electricity, possessing the address of the residence.
- Credit Registration Bureau Record from the country where the borrower resides.
- Official documents verifying the borrower’s personal assets, and any debts.
- The application form with signature.
How to Get a Mortgage to Buy Turkish Real Estate?
You can consult with Prime Property Turkey’s in-house legal team for guidance and take advantage of our real estate consulting services to choose a property to buy.
Once you select a property, you must acquire a valuation report to determine the amount of the loan you can get.
You can then complete the mortgage application form and submit your documents. The final step is for you to sign the mortgage proposal.
How to Get Financing From a Property Developer in Turkey?
If you don't want to apply for a bank loan, you can always go for a payment plan.
A payment plan is a loan offer from a Turkish property developer. They offer this facility to ensure that their deals will go through.
Most payment plans are 35% to 70% of the total property value. You have to pay a down payment to the developer, while the rest of the loan is paid in installments. They will keep the title deed of the property until you make full payment.
Is it Possible to Buy Properties in Installments?
You can browse Prime Property Turkey’s many properties to find options with great installment plans. You can also get connected with our team so that they can help you find attractive properties such as apartments, villas, penthouses, home offices, etc in different parts of Turkey and help you get Turkish citizenship in return for your investment.
More to read from us:
The Decline of the Turkish Lira and Its Impact on the Real Estate Market in Turkey
