Turkey is one of the few countries to have opened up its economy to allow people from a majority of places in the world to invest in the country. It allows foreign nationals from reciprocal countries to buy property and land in Turkey. For the uninitiated, reciprocal countries are those that allow Turkish nationals to buy property in their country. While the list is exhaustive, major countries that are allowed to buy property and land in Turkey include the United States of America, Australia, Italy, Great Britain, Sweden etc. Nationals of countries like China, Kenya, Ukraine, etc. can buy only property and not land. However the total area that he can buy in a certain area cannot exceed 2.5 hectares. They can also not buy more than 10% of the total area in a place. They are allowed to buy property covered under the Implementary Development Plan, but not under areas marked military, strategic or security. Neither can they buy from areas that are designated under specific zones including energy, agriculture, mining, history etc. An English speaking solicitor is the best person to help you navigate these rules and regulations.
Mortgage loans are available for purchasing a property, so are refinances for home improvements. And if the property is in the process of completion, the loan amount is not disbursed until completion of work and registration. While the minimum amount that can be borrowed is € 30,000, the maximum cap is set at 85% of the value of the property. And if the property is purchased at a significant discount, 100% mortgages are available. The maximum repayment term is set at 20 years and is available up to the age of 75. The documents required can vary from bank to bank, but generally includes proof of earned income, pension, investment or rental income etc.
The current rate of interest for a period of 10 years can vary according to the currency. For example, for Japanese Yen it starts from 4.80% and 6.40% for Euro. Needless to say, you need to have insurance for the property to avail the loan.
The process begins by submitting documents to the bank. Documents to be submitted include copy of your passport, proof of income, bank statements, bank statement on the state of your current outstanding loan status, credit report etc. Fixed and variable mortgage are the most common mortgages offered by banks. Fixed mortgage is available for reduced interest and stable premiums for short term plans and higher interest rates for long term plans.
The Turkish legal and administration process can be slow and long drawn and hence make sure you’ve started the loan process even before you’ve begun a search for the property.
Resource Box: Yapi Kredi has the lowest konut kredisi hesaplama and the highest en uygun kredi. You can calculate the kredi hesaplama here.
Kredi Hesaplama 