Finance for property in Turkey

Updated: 24 June 2020 Created: 19 May 2013

Finance for property Turkey

How to Get Finance for Property in Turkey


1: Finance in your Home Country

Turkey’s modernised real estate industry is still in its infancy, and in some places, masses of housing keeps prices down. This means that buying a house in Turkey is often a fraction of the value in other more developed countries. Expats who want to live here all year round, often sell their home and can afford to buy a property in Turkey, outright with cash. Others who want a summer holiday home, often release equity, or get another mortgage in their home country. It is worth looking at options in your home country before getting finance from Turkey, and for excellent reasons.


3. Mortgage from a Turkish Bank

Foreign buyers can arrange finance through a few Turkish banks, most of which will have English speaking financial advisors to help buyers navigate the process. Some Turkish banks offer off-plan finance for buyers with homes still under construction. This option will hinge on obtaining a guarantee from the construction company. Banks will provide as much as 70% of the property value, with some offering finance in Dollars, Euros or Pounds. Repayments take place over a maximum of 20 years, and cannot be more than a third of your income. However, there is a catch.

Turkey’s high-interest rates are the chief reason foreign buyers refrain from seeking finance from a Turkish bank. If you are a property investor looking to earn rental income from your new real estate purchase, the prohibitive cost of borrowing will eat into any rental income you receive. We recommend amending your budget so you can invest with no mortgage.

If you opt for a Turkish mortgage, remember a bank will not allow a mortgage if your property does not have an iskan (habitation licence), or has debt standing against it. An iskan shows the home meets the government regulations, making it liveable. Quite a few older resale properties do not have this licence, which is one reason foreign buyers opt to buy new build properties in Turkey. When you apply for a loan, your bank will go to the local land registrar to find out these details.

Forms that you will need for a Turkish mortgage include signed application form, notarised passport copies, bank statements no older than three months proving income, if employed, your payslips. If self-employed, records showing two years of financial history, overview of private assets and debts, Turkish tax number, credit rating certificate from your home country and title deeds copy of the property you buy.


3: Obtain Finance through your Property Developer

Across the country, but especially in Istanbul, Turkish developers often offer finance terms over periods of up to five years. You will generally need to put down between 30 and 35% as a deposit, and then pay the rest in monthly instalments. The subsequent finance terms are usually favourable because some also have 0% interest. The properties are off-plan or new build, and for real estate investors offer much potential because they also tap into discounted off-plan prices.

These one to three-bedroom apartments in Maltepe are the perfect example. Buyers put down a down payment of 25% and then pay the remaining amount over four years. The apartments also have a variety of communal lifestyle facilities including a swimming pool, restaurants, terraces, and fitness club. If you would like to receive a portfolio of homes for sale that offers long term payment plans, or more details about finance for property in Turkey, contact us today, and we will send details via e-mail.

Alternatively, browse our portfolio of apartments and villas for sale in many areas of Turkey, including Istanbul, Antalya, Fethiye, Bursa and Bodrum. Each listing includes everything to know, including price, location, home features and how to find out more or arrange a viewing. The following articles will also be of use in your search to finding your dream home in Turkey.


Articles of interest

Best Places in Turkey to Buy a Holiday Home: When it comes to investing in a place in the sun, specific destinations fair better than others because of the holiday ambience they offer. Most of these are towns and coastal resorts along the Aegean and Mediterranean. We look at which places are soaring ahead in popularity.

Is It Safe to Buy Off-plan Property? While some buyers opt for new build or resale homes, many others like to tap into the discounted prices that off-plan property offers. Of course, they have concerns, so in this article, we look at what you need to know when investing in a property that hasn’t already been built.

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