About Financing Property in Turkey and Mortgages for Foreigners

4 mins read

If you are looking at financing property in Turkey, rest assured that there are quite a few options. Even though Turkish house prices have considerably increased over the last three years, Turkish property is still affordable, especially compared to other countries like Spain, France and Portugal. Moreover, with an average of 50,000 sales a year of apartments and villas to foreigners, Turkey still proves itself as one of those destinations where foreigners find comfort and safety in buying. In this article, we look at what to know about financing and also the options available to you.

How to Finance Property in Turkey

property in turkey

1: How Much are Deposits on Houses in Turkey?

Deposits on houses in Turkey vary depending on what you buy and from whom. For example, many prominent developers constructing large lifestyle complexes in Istanbul will ask for a deposit of 0 to 10%. However, the amounts vary if you choose to buy a resale house. Typically aim for at least a 5% deposit to be paid.

2: Can a Foreigner Get a Mortgage in Turkey?

Yes, they can. Many high-street banks in Turkey offer mortgages to foreigners, including Ziraat, Garanti, Turkiye Is, Kuveyt Turk, Deniz, ING and Yapi Kredi Bank. However, check the interest rates and repayment terms because they can be pretty high sometimes.

  • Banks typically offer between 50 to 65% of the property price
  • The mortgage will typically last for ten years
  • The mortgage can be in Turkish lira, euro, us dollars, Swiss France or GBP
  • The bank will carry out their property valuation
  • Anyone between the ages of 18 to 70 can apply
  • Mortgage fees will include the loan opening, appraisal, valuation, and establishing fee

homes in turkey

3: Documents needed for an Application for a Turkish mortgage

  • Title deeds of the property you want to purchase
  • Passport photocopy and residence permit, if applicable
  • Previous year’s tax declaration
  • Proof of income for the last three months
  • Bank statements for the previous six months
  • Reference from the employer for employed people
  • Credit rating from the country where you usually reside.
  • Copy of bills for the current residence
  • Please note that all foreign documents need to be officially translated and notarized

4: How to Apply for a Turkish Mortgage

If the application is approved, the buyer will pay the bank to conduct a property valuation. If the valuation is agreed upon, the buyer will sign the proposal and submit approval from the foreign ministry to buy property, alongside DASK, house, and life insurance. The title deeds will then be signed over the mortgage deeds issued to the bank.

5: Mortgages for Off-Plan Properties

Not all banks in Turkey offer mortgages for off-plan properties; if they do, it will only be their pre-approved mortgages where they work directly with the developer. So enquire with all relevant banks to find out which projects they cover. Read more about Turkish mortgages and the advice from our managing director Julian Walker.

6: Mortgage Alternative – Structured Payment Plans

Many foreigners opt for a popular alternative, interest-free structured payment plans. These are typically seen in developments in Istanbul. Ranging from one to ten-year, home buyers pay structured payments with 0% interest, and in many cases, they make a wiser and cheaper investment than a mortgage.

7: Don’t Forget Closing Costs for Buying the Property

As well as funding the actual property purchase, you will also need to fund the closing costs, and these typically come in at between 6 to 8% of the purchase price. They include….

  • Stamp duty
  • Solicitor fees
  • Land registry fees
  • Notary costs
  • Translation costs
  • Agency fees

Note – When buying a house in Turkey as a foreigner, it is worth knowing about foreign exchange rates on currency and how the market works. Read about them here.

More About Financing Property in Turkey

If you have further questions about financing property in Turkey, call us today and chat with a local agent. Alternatively, see our portfolio of apartments and villas for sale. Each listing contains everything to know, including price, location, home features, and contact details to find out more via email or telephone or to arrange a viewing. For all our clients that purchase property through us, we give detailed payment plans structuring what needs to be paid and when so you are entirely in the driving seat of your property purchase in Turkey. You might also be interested in the following articles

Residency and Turkish Property: You can rent property in Turkey and get residency. Additionally, owning property does not automatically entitle you to residency. You still must go through the residency permit application process and prove that you are eligible to apply. This article looks at real estate purchases, residence permits, and foreign house buyers who can acquire Turkish citizenship.

Living Permanently in Turkey: Turkey is an all-rounder, attracting European, Asian, Middle Eastern and African communities. The country feels like home to anyone who chooses to make these shores their permanent dwelling place. So, let us look at what to know about living permanently in Turkey, how to go about the move, and famous places for expats.

financing property in turkey

About Natalie

Natalie is a dedicated real estate professional currently working at Spot Blue International Property. With over a decade of experience in the industry, she has acquired a wealth of knowledge and expertise regarding global properties.

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