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Property mortgage in Turkey for foreigners
If you plan to buy a property in Turkey with a bank loan, at first, it’s better to get familiar with the terms. Getting mortgage in Turkey for foreigners has its own particular conditions. In order to buy a home, the agent, after reviewing the terms will be able to provide 75% of the property value to the applicant, which is attractive. The repayment of the facility is generally lasts 10 years.
The policy of the Turkish government is to grant housing, vehicle and other facilities through a system of validation or credit through various operating banks. In this system, your credibility is based on your business’s track record, the net profit of your business. if you are an employee, will be assessed for the rights you receive and finally all of your real estates, movable and immovable properties.
You have two basic ways to take advantage of credit
First: You must start a business by registering a company in Turkey, then you will receive a work permit. During the first company’s financial year, you will increase the company’s finance and pay taxes, and justify the bank to give you appropriate credit.
Second: this way is to settle your business through another company. In this method, revenues are earned by real estate.
If you have the above conditions, you first need to submit request for a property loan to the desired bank. After submitting a request for purchase of a property in Turkey with a mortgage, the bank will evaluate application form.
The maximum amount of property mortgage for foreigners in Turkey by bank is seventy five percent of the total value. Of course, for this evaluation, the bank sends a representative to visit the property. also, another noteworthy point is when someone buy a home with bank loan in Turkey , the installments amount equivalent to fifty percent of the applicant’s monthly salary or income. The duration of the installment lasts a maximum of 15 years. Another issue with buying a property with a bank loan in Turkey for foreigners is the possibility to pay the loan back in other currency. That means you can choose EUR or GBP currency instead of Turkish Lira. In addition, when you buy a home using property bank loan in Turkey and after a while you decide to withdraw the loan and intended to settle your loan with the bank, you must pay a fine to the bank.
According to the law, if there are more than 36 installment remain, applicant will is supposed to pay 1% of the total amount of the loan to the bank. And if more than 36 installments are left, 2% of the fines in addition to the remaining of the loan amount will be deducted.
Another important point is age of applicant for a bank loan in Turkey. When you decide to buy a home in Turkey with a bank loan, you should be between 25 and 70 years old. Also, if your property has two owners at the time of applying for a bank loan, both owners must separately complete the bank forms.
Ways to apply for Turkish bank loans for foreigners
There are, of course, other ways that can replace the purchase of property in Turkey with a bank loan for foreigners. One of them is to purchase projects under construction. Because you pay up to 20% or 30% when making purchases. you pay the remaining amount according to the project timetable as the installment agreement with the owner.
The superiority of the method mentioned above to buying a property in Turkey with a bank loan is that you do not need to pay more profit like banking profits. In addition there is another way as an alternative to buy a property in Turkey with a bank loan for foreigners. You can buy ready to move projects, that give you the terms of purchase from 1 to 5 years and the property document is fully cleared in the name of the customer upon completion.
Altogether, foreigners have two options to apply for a mortgage in Turkey. The first is to go to the bank personally, and the second option, the foreigner can give the lawyer or someone else this permission to apply for a loan with the official power of attorney.
The application form, as well as all documents submitted by an external citizen to the bank for applying for a loan, must be in the official language of his/her country. Also all documents must also be certified by the ministry of justice or any other related organization inside the applicant’s home country. At the same time as applying for mortgage in Turkey, all of these documents must be translated and certified by the official translator in Turkey. And the last condition that foreign nationals must comply with when applying for a property loan, is to obtain authorization from the relevant authorities before selling.
Required Documents for mortgage in Turkey for foreigners
Foreign nationals, after having complied with the conditions set out above, prepare and submit these documents to one of the branches of the bank concerned and submit their application.
- National ID card
- Employment certificate, and work Page
- Kimlik number for foreign nationals, or tax number
- Application form and mortgage application
- Accommodation tab
- Signature sample
- Information about the job you are doing and contact information at work