Mortgage in Turkey
2 Types of Mortgage in Turkey
Whether you purchase real estate in Turkey on credit from a construction company or a bank, it is easy to make the purchase. There are 2 basic types of mortgage in Turkey which are detailed below.
#1 Credit From the Construction Firm
Get credit directly from a construction company through an easy and simple process. All that is needed is a sales contract with a construction company where all payment details are composed. No additional documents, costs or paperwork are involved. The downpayment generally involves 50 percent of the real estate price. The remaining 50% can be paid with installments adding up to 5 years or 60 months. From a period of after 1 to 5 years, you need to pay interest at rates 20 percent lower than bank rates. There is a 1 year credit sans interest. Whenever you pay half the cost of real estate, the TAPU or title deed delivery is handled with the hypothec on your name. This is the remaining money owed to the construction firm. The sales process is handled in a risk-free way for the buyer and the seller as a result of this.
Payment of monthly installments can be automatically carried out from the buyer to the seller account. The currencies for payment range from Euros to US $ and TL or Turkish lira. The payment matures from 1 till 5 years, with the minimum credit of 20,000 Euros. This mortgage can be availed for individuals between 25 and 70 years of age.
Payment plans of construction companies can, however, vary. Some companies may offer interest free installment for 12 months and others offer interest rate maturity of around 60 months. While the down-payment is determined by construction company, the remaining amount can be issued in installments.
#2 Bank Credit
Banks require documents for mortgage in Turkey including notary certified translation passport, Tax ID number (procured form the tax office) and a residence permit. Also needed are the customer income document and the Tapu or title deed.
A credit application is made to the bank once the documents have been prepared. Preliminary approval from the bank follows a few days later. This can range from a period of 3-4 days. The bank then sends an expert to value the property. Once the valuation is done, the bank loan is approved. After this, buyers and sellers complete their title deed (Tapu) application.
You need to put across the residence permit, photocopy of title deed, tax ID, certificate of salary with Apostille, and passport for bank credit. Banks offer credit for a variety of properties in Turkey.