fbpx
  • English
    • Arabic

Real estate loans in Turkey

Real estate loans in Turkey

Real estate loans in Turkey

The Turkish real estate market has witnessed an unparalleled turnout by investors and those who want to own property in recent years, and the pace of real estate purchases has accelerated, and apartments are owned by foreigners in various Turkish states, and perhaps the reason for this is due to Turkey’s transformation into a country that includes one of the largest real estate markets. Globally, investing in such a country would be a real opportunity for investors to make huge profits on their investments.

With a glimpse at Turkey as one of the most attractive destinations for foreign and Arab investors in general, the charming nature of the Turkish lands, the beauty of places and regions in various cities, the cultures and customs shared with their Arab counterparts, are among the factors that encourage investors to come to Turkey, undertaking real estate projects.

When talking about the facilities provided by the Turkish government, there are many of them, as the Turkish Ministry of Interior approved some of the decisions that work to encourage real estate investments that concern foreigners in order to advance the Turkish economy and reach the strongest global economies.

Among these facilities provided by the Turkish government, real estate loans in Turkey, these loans that are allocated to Turkish citizens and foreigners alike, are the largest opportunity to buy real estate in Turkey through real estate financing, and secure appropriate loans to buy real estate in installments, according to the limited budgets, and in the time periods that Fit them.

After the Turkish government issued the enactment of laws related to commercial financing and real estate loans in Turkey in 2007 AD, foreigners and citizens alike were able to buy an apartment or property in installments, by borrowing an amount from a Turkish bank.

Since that time, there have been many inquiries about the method of obtaining real estate loans for foreigners in Turkey, which in reality is no different from its counterparts in other European countries, such as France, Denmark, Spain and other European countries.

In this article we will try to clarify the general picture regarding the issue of obtaining real estate loans for foreigners in Turkey, and we will work to answer all questions related to real estate loans to foreigners, the extent of the loan that can be obtained, the interest rates that result from it, and the necessary documents that should be provided when applying On them, and other questions and inquiries on this topic.

What is the size of real estate loans to foreigners in Turkey?

Buying a property for people with limited income is not impossible, your dream of buying an apartment in Turkey or a specific property can be realized somewhere in one of the major Turkish states, by applying for a real estate loan from a Turkish bank. As there are some Turkish banks that offer great facilities in this regard for those who want to own property.

But it must be noted an important thing, which is that the maximum that can be obtained through real estate loans in Turkey is 75% of the general percentage of the value of the property to be purchased for Turkish citizens. Whereas, foreigners can get 50% of the total property value.

As for the subject of real estate appraisal, it is through summoning two sworn appraisers, who are approved according to the executive regulations of the General Authority in the Turkish capital markets. Where one of them works to verify the information registered in the real estate registry office, and the second visits the property in order to ensure that the registered information is correct, and that the registered property is correct, and they also work to check whether the real value of the property and the price registered in the real estate registry office are identical with each other. Other.

Those wishing to buy an apartment in Turkey in installments can obtain a real estate loan in Turkish lira or in foreign currencies, such as dollars and euros. But it is advised for foreign investors to take the loan in foreign currencies, due to the high inflation in the Turkish local currency.

What are the interest rates that result from real estate loans in Turkey?

With regard to the interest rates that result from real estate loans in Turkey, they range between 4.5% and 7.5%. But the interest rate charged on the mortgage depends on the amount and type of the loan, and this must be done on the condition that the payments in the monthly mortgage loan do not exceed a third of the income.

With regard to buying an apartment in Turkey in installments via mortgage, the documents that must be shown to prove your ability to pay the loans owed on you, will be bank statements or employment certificates.
What are the payment terms for real estate loans in Turkey?

Payment terms in real estate loans in Turkey vary from one bank to another, according to the currency adopted in the mortgage and the type of property to be purchased, but the maximum loan payment for the mortgage in Turkey is 15 years, and the age of the one who wants the mortgage should not be more than 80 years.
What documents are required to apply for real estate loans in Turkey?

There is a set of documents required by those who want to own property in order to apply for real estate loans in Turkey, and they are as follows:

A passport with a validity of at least 6 months, translated into Turkish, and certified by a notary.
A copy of the identity card of the property seller if he is a Turkish citizen, or the passport if he is a foreigner.
Tapu document that confirms the right of ownership.
Data sheet (provided by the real estate developer).
A tax number extracted from the local tax department.
A paper from a Turkish bank confirming the opening of a bank account in it.
The employee’s salary slip, issued by the entity in which he works.
Bank statements Any statement from the bank showing the value of income for the last three months.
Real estate appraisal report, prepared by the bank’s expert.
A verification certificate confirming the correctness of the information, address, residence permit, or identity card.

These papers that we talked about are the public papers that should be provided with employees who receive monthly salaries, and want to obtain a mortgage from the bank, in order to be able to buy a property in Turkey. But for people who work for themselves, that is, those who have established investment companies, they have some exceptions in the required papers, which are:

Company incorporation certificate.
In the event that there are partners in the company, a document showing the common shares should be proven.
The company’s balance sheet, the income statement from the last two years.
Company title deeds, and driving certificate for all cars that belong to the company.
Account movements provided by the company’s bank, showing the company’s cash flow.
Annual tax return.

The most important Turkish banks that provide real estate loans in Turkey?

There is a good group of Turkish banks that provide real estate loans to Turkish citizens and foreigners in general in Turkey, and it is noticeable that some of these banks have dealings with Arab banks, and the most important of these banks are:

Turkish Agriculture Bank Ziraat Bankası
Turkish Guarantee Bank Garanti Bankası
Turkish Business Bank Türkiye İş Bankası
Kuveyt Türk Bankası
Deniz Bankası

It is worth noting that the aforementioned banks are among the first Turkish banks that began offering real estate loans in Turkey, and they have real estate offers that attract the attention of investors and those who want to own real estate, and the value of the mortgage loan can reach up to 70% of the property value. This Turkish banks have a set of advantages that distinguish them from other banks, which are:

Offers of real estate loans are continuing, and they call the attention of those wishing to obtain real estate loans.
The presence of employees who can speak various foreign languages.
The competitive prices offered by these banks are the best compared to other banks in Turkey.
The loans offered by these banks have a term of up to 15 years.
The possibility of providing mortgage loans in different currencies: dollars – euros – pounds sterling.
Great cooperation with leading housing projects in Turkey.
Close cooperation with expert Turkish real estate agencies.

How can I get real estate loans in Turkey?

When you have chosen a specific property in Turkey, and as soon as you have the necessary documents for this property, you can apply for a mortgage loan from one of the banks mentioned earlier in our article. At that time, you will wait 3 to 4 days for the approval of the bank to come, and the bank will send the specialized real estate expert to the location of the target property to conduct evaluations of the approximate market price.

After the experts’ evaluation, your mortgage will be approved, and you will move to the next step of the title deed transfer process.
Is it possible that the laws on real estate loans in Turkey are subject to change?

Of course, this can be done according to the policy followed in the country, the laws on real estate loans in Turkey may be subject to change, and this can be linked with the political and financial changes of the country, and the transactions of major banks in Turkey play a big role in facilitating or complicating the process of obtaining a real estate loan for foreigners.

Important advice on this topic

There is no doubt that those who deal with real estate companies and investment businesses ask many questions about this topic, and Taksim Homes worked to collect all information related to this topic and put it on the watchers.

It is well known to everyone that real estate professionals agree on the issue that real estate loans can benefit low-income and middle-class investors and people interested in real estate ownership.

Therefore, we offer advice not to rely on these real estate loans, but rather we invite them to take advantage of all offers from real estate development companies, as the property can be purchased in installments for a period ranging from one to 5 years.

There are also some construction companies supported by the Turkish government roads, which provide apartments in Turkey in installments over 10-20 years, without interest, and with an initial payment not exceeding 10% of the property price.

Those interested in owning property in Turkey can get a long-term installment without interest, and will save a significant amount of interest that you will pay over the years in installments to the bank.

Conclusion

In this article, we talked about real estate loans that Turkish banks offer to foreigners and citizens alike, as we took a peek at the Turkish real estate market, and the great facilities provided by the Turkish government to investors, on top of which are real estate loans.

In the following paragraphs, we have provided everything in our effort, and we have done our best to clarify the general picture regarding the issue of obtaining real estate loans for foreigners in Turkey, and we have worked to provide answers to all questions related to real estate loans, such as:

What is the size of real estate loans to foreigners in Turkey?
What are the payment terms for real estate loans in Turkey?
What documents are required to apply for real estate loans in Turkey?
How can I get real estate loans in Turkey?
Is it possible that the laws on real estate loans in Turkey are subject to change?

We talked about the most important Turkish banks that dealt with Arab banks, which offer the best real estate loans for low-income people, and we did not forget to provide important advice on this issue.

Did you like our topic? You can share it with your friends!

Related posts

Arab schools in Istanbul

Arab schools in Istanbul Thanks to the great potential that Istanbul has With regard to...

Continue reading

Establishing a company in Turkey

Establishing a company in Turkey Many foreign investors want to establish a company in Turkey,...

Continue reading

Live in Turkey

Live in Turkey The great progress that Turkey has achieved in recent years, and in various...

Continue reading

Join The Discussion