How to get a mortgage if you are a foreigner

How to get a mortgage if you are a foreigner

Most Turkey’s banks ensure foreigners a friendly mortgage policy. All foreigners who are going to buy a property in Turkey can apply for a mortgage in this country. Local banks offer a simplified procedure so that very often it is much easier to get a mortgage for foreigners rather than locals.

Mortgage terms and conditions may vary from bank to bank. But the most common ones include:

  • You can get a mortgage in dollars, euros, pounds, rubles and Turkish liras;
  • The mortgage term is usually from five to ten years;
  • The annual interest rate varies from 9,3 to 13,4%;
  • if you are buying a property under construction, the mortgage loan is usually around 40% of the property value and if your property is already completed – 80;
  • if you pay your mortgage off early, a bank charges 1-2% of the remaining sum of the loan.

To apply for a mortgage, you need to provide your bank with the required documents:

  • copy of the title deed (TAPU) of a property you are buying;
  • copy of ID or residence permit;
  • tax identification number that you can get at a local tax office;
  • copy of Iskan (technical certificate of habitation);
  • income statement signed by the employer for employees;
  • bank statement declaring the income (the last three months)
  • invoice proving your address in the country you reside (water, electricity, gas bills for the last three months).

After you apply for a mortgage, the bank considers your application within a short period of time. The bank’s property expert also appraises the property to be purchased and based on this appraisal the bank makes an offer. When the bank approves your mortgage, you need to pay for the bank services, house insurance, life insurance and the expert’s appraisal service.

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