How to apply for a mortgage?
Prior to 2007, most houses in Turkey were financed via leases. Legislation passed in 2007 led to the introduction of mortgages, similar to those available in much of Europe and the United States. Mortgage repayment periods typically range from 5 to 20 years and many providers stipulate that the mortgage holder must repay their mortgage before they reach a certain age. Applications for a mortgage must be supported by clear evidence of the ability to keep up with repayments.
In Turkey, there are other fees which need to be paid, in addition to the purchase price of a property. These include fees associated with registration (lawyer, notary, interpreter and permits), which are usually about one percent of the purchase price.
The following fees are shared between the buyer and the seller:
-
Stamp duty, which is charged at 0.75 percent of the purchase price
-
A three percent title deed charge, which is paid to the Land Registry when the TAPU is received
-
A commission of about six percent for the estate agent
Property tax is a municipal tax on both land and property. The rate depends on the property's classification. In the year that the property is sold, it should be paid by the seller, with the buyer taking responsibility the following year. The buyer should inform the local authority of the price paid for the property.
Earthquake insurance is compulsory when buying a property.
So you’ve decided to buy property in Turkey but you haven’t got enough money? Not a problem! We will tell you everything you need to know about getting a mortgage in Turkey.
-
We will take you to the nearest branch of DenizBank, Akbank, Küveyt Türk, Garanti Bank or any other, where we will discuss the best conditions of mortgage with an advisor;
-
You will fill in the application form and the bank will start the assessment of the credit;
-
The bank will send the appraiser to assess your future home;
-
Within 5 working days the bank will inform you of their decision;
-
You will receive the guarantee bank letter to collect the necessary documents;
-
After receiving the guarantee you have to pay the bank’s services for issuing the credit;
-
Within four months you have to submit the following documents:
-
DASK: (real estate insurance from natural disasters)
-
Iskan Ruhsati: (the certificate on house input in operation)
-
Permission from the Ministry of Defence of Turkey on acquisition of real estate by you
-
National insurance number received in local internal revenue service
-
The additional documents provided by the borrower
-
Open bank account
After collecting all documents, you obtain the credit and you can purchase real estate.
In individual cases the bank can consider questions of financing the purchase of objects under construction.
|
Credit size
|
50-60% of estimated cost (not always corresponding to market price)
|
Limit of monthly payment
|
Maximum 50% of the monthly income
|
Income assessment
|
Income received over last two years, including pension
|
Maximum sum
|
Unlimited
|
Minimum sum
|
Unlimited
|
Nationality
|
Citizens of all countries having the right of purchase of real estate in Turkey
|
Length of credit
|
5-15 years
|
Credit in Turkish lira
|
Yes
|
Credit in Euro
|
Yes
|
Credit in USD
|
Yes
|
Credit in GBP
|
Yes
|
Purpose of credit
|
Final
|
Early repayment
|
Possible (2% penalty commission charges)
|
Property assessment
|
At bank’s discretion
|
Age of the borrower
|
25-70
|
Maximum age of the borrower
|
70
|
DASK: (real estate insurance from natural disasters)
|
Registration through crediting bank
|
Life insurance
|
Not applicable
|
Monthly repayment
|
Automatic payment from the bank account
|
Accompanying documents necessary for issuing of the credit.
|
Salary-earning employees
|
Company owners
|
Retired
|
Reference letter from the tax office for the last year (from the originating country)
|
|
√
|
|
The copy of Tapu (certificates of real estate ownership) for the acquired property
|
√
|
√
|
√
|
Certified photocopy of the passport
|
√
|
√
|
√
|
The letter of employment and salary issued by the employer
|
√
|
|
√
|
Certified reference letter confirming personality signed by the employer
|
√
|
|
√
|
The letter of receipt of funds on the bank account (no later than 3 months)
|
√
|
|
√
|
Statements of accounts for the last 2 years. Photocopy of partners letters
|
|
√
|
|
Monthly expenses letters (rent, payments by installments for real estate, expenses)
|
√
|
√
|
√
|
Documents on possession of property
|
√
|
√
|
√
|
Completed application form
|
√
|
√
|
√
|
|
All documents should be officially translated into the Turkish language.
Author: RestProperty
All materials and articles published on www.restproperty.com are protected by copyright. Full or partial copying, reprint and placement in mass media and the Internet, without consent of RestProperty is forbidden. After the consent is received, materials can be published on the Internet — only with the active link to our website.
The following articles may also be of interest:
Apartments in Turkey
The benefits of home ownership in Turkey
Rent your property out
Book a free Inspection Tour in Turkey
<< Articles about real estate in Turkey