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Mortgage for a foreigner in Turkey

Mortgage for a foreigner in Turkey

Mortgage for a foreigner in Turkey - easier than you think!

What is the essence of a mortgage loan?

Mortgage is called a real estate mortgage. Accordingly, a mortgage loan is the purchase of housing with the condition of its mortgage. This is a widespread worldwide way of buying a house or apartment for those people who are not able to immediately pay the required amount. As a rule, there is usually a down payment, after which the buyer draws up the housing in the property, and at the same time it is pledged to the bank, uses the housing, paying monthly payments to the bank every month during a certain contract period.

Can a foreigner in Turkey buy housing by taking a mortgage loan from a bank?

This opportunity has been provided by Turkish banks for a long time. A foreign citizen, who may be the owner of housing in Turkey and who has submitted the relevant documents to the bank, in whose favor the bank has decided to issue a loan, may use it to purchase housing. It should be noted that the conditions of such loans are quite attractive low interest rate and ease of processing.

What banks offer mortgage loans for foreigners?

Initially, Denizbank was the leader in this area. Many foreigners, including Russian citizens, received loans from this bank. But we must not forget that the conditions for granting at each bank at least a little, but different, and citizens have the right to choose. Currently, in addition to Denizbank, is actively lending to Garant, Fortis and other banks.

Terms of contract

Loans to foreigners are issued in Turkish lira, dollars, British pounds or euros for a maximum period of 10 years, as a rule. A loan for persons who are not citizens of Turkey and the European Union can be issued from 50% of the estimated value of housing (Guarantee Bank) to 70% (Denizbank). Evaluates housing independent organization. From practice, it can be noted that if housing is purchased at an adequate market price, then one should not expect a significant undervaluation by the appraiser. Interest rate from 7.8% per annum. Banks also determine the maximum loan amount - usually 250,000 Euros, Denizbank notes and the minimum - 30,000 Euros. It turns out that you can get a loan in Denizbank for housing, the value of which exceeds 40,000 Euros. Fortis and Garantiya do not put the borrower in such a framework, so there you can apply for a loan and for smaller amounts.

What documents must be provided to the bank for processing a loan?

In addition to the passport and statements, you must confirm the creditworthiness of the borrower. To do this, each bank will require an income statement. For employees, this is salary data signed by the head of the company, for entrepreneurs - reporting documents. Also, some banks say they need to provide a certificate from the Bureau of Credit Histories. There is no single bureau in Russia, there are several (and often information is provided different), so it’s enough to get a certificate in one of them. It makes sense to take with you documents confirming the borrower's other income - alimony, rental income, etc. If the property of the borrower has real estate, cars, other valuables, then take the papers confirming the property rights. This will be an extra plus in favor of granting you a loan. All documents already in Turkey are translated into Turkish and notarized.

The list of documents also listed permission from the military. Here we come to the most interesting, namely: waiting for this permission lasts for several months, and only after receiving it will the bank pay the cost of housing to the seller. Therefore, choosing an object, it is always necessary to clarify whether the seller agrees to expect payment within 3-4 months. This circumstance today is a serious limitation of the ability of foreign citizens to acquire real estate on credit. It can be overcome either by shortening the time for consideration of documents in Izmir, or by the development of a different lending scheme by banks.

How long does it take for the bank to process a loan application and what are the additional costs associated with issuing a loan?

If all documents are ready, the bank will consider the application as soon as possible. Almost all banks are ready to meet the work week. The appraiser is sent to the object, then the received documents are processed and a decision is given. As for expenses, it is very difficult to give the exact amount, since it depends on both the object and the borrower’s identity. Costs will include the payment of bank services, payment of property insurance, the life of the borrower, in some s, payment of expertise. If we talk in general, we are talking about 800-2000 Euro additional costs. Of course, not including the payment of the translator, notary, as well as the cost of registration of Tapu.

How large is the failure rate, in other words, is it easy to get a mortgage loan?

Turkish banks today are very interested in providing loans to foreigners. The procedure is simple. It is no secret that many data provided by the borrower can not be verified. But the bank is sufficiently protected. The interests of the bank are represented in the very fact of real estate pledge, and at the expert value, as well as in the mandatory conclusion of insurance contracts for real estate and the life of the borrower. In the event that payment under the contract cannot be continued, the bank, without any obstacles, is able to realize housing at a public auction. Employees of banks say directly that a foreigner in Turkey to get a mortgage loan is easier than a Turkish citizen. The statements of the Turks more carefully

Is it possible to verify that the transaction is really a purchase and sale, and not a way to receive funds at a low%. Foreigners in most s do not go for tricks, but really acquire housing.

to issue a power of attorney for a loan to another person, for example, a realtor?

Of course. The banks have special forms of power of attorney, filling out which, you give the realtor or another authorized person the right to engage in your credit. Of course, this is very convenient for those who do not live permanently in Turkey or do not speak sufficiently Turkish.

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