Oct 26, 2023

Are Foreign Nationals Entitled to Apply for a Mortgage from Turkish Banks

666 devloper Are Foreign Nationals Entitled to Apply for a Mortgage from Turkish Banks

A Mortgage from A Turkish Bank

Contrary to many beliefs that a foreigner in Türkiye cannot apply for a loan from one of its banks, a foreigner in Türkiye has the right to apply for a consumer debt application submitted to banks to obtain a loan for a transportation loan or a mortgage.

Of course, many important documents must be shown to the bank in order to secure the desired mortgage.

Conditions for Obtaining a Mortgage from A Turkish Bank

A foreigner can apply for a mortgage from Turkish banks, which may reach 70% of the property's value when the property to be purchased is ready or, at least, 80% of it is built.

There will be interest rates on the mortgage from banks that range between 4.5-7.5% of the mortgage value, which is considered high compared to other countries.

Therefore, Homeland Real Estate, with its real estate consultants, does not advise taking a mortgage from Turkish banks, but rather withdrawing a mortgage from the original country of the investor.

However, if a Turkish bank is chosen for a mortgage, one of the most important conditions for obtaining a mortgage in Türkiye is:

  • Proof of the borrower's financial capacity; where the value of the payments due should not exceed 45% per month of the declared income.
  • The customer must be between 25-70 years old when obtaining a mortgage in order for the mortgage to be repaid before he/she exceeds 80 years of age. This varies from city to city and also from one bank to another.
  • Rental income from private property is not taken into account when calculating the income and financial ability of a customer wishing to apply for a bank mortgage.
  • The mortgage's interest rate in Türkiye ranges from 4.5-7.5% with a repayment period of 10-15 years.
  • Almost all foreign nationals can get a fixed-rate mortgage in Türkiye to pay it off.


Documents Needed for a Mortgage (Garanti Bank as an Example)

Certain documents are required when a foreigner applies for a mortgage from a bank. Among these documents:

  • The tax identification number in the Turkish state.
  • A copy of the passport.
  • Residence permit or work permit, both for a period of at least 12-24 months.
  • A 3-month tax certificate or bank statement instead of the income certificate.
  • Credit registry office record from the home country.
  • A copy of the residence address in the home country.
  • The appraisal report is determined by the appraisal companies and approved by the bank.
  • The presence of a guarantor of Turkish nationality to guarantee the repayment of the mortgage.
  • Be careful not to choose military-restricted areas or security zones.

This type of loan does not apply to nationalities prohibited from owning property.

These nationalities include Syrians, Nigerians, Armenians, and other nationalities; while other loans can be withdrawn, such as loans of need or owning a car.

As for the banks that provide loans to foreigners, they are divided into foreign banks and banks based in Türkiye; while almost all foreign banks provide loans to foreigners, a few government banks provide loans to foreigners.

These include Ziraat Bank, VakıfBank, İş Bank, Garanti Bank, QNB Bank, Ak Bank, and Halkbank.


Therefore, as the Homeland Real Estate Company team, we are ready to provide free real estate consultations to fulfill your desire to own a distinguished property. Do not hesitate to contact us at +905377793006.