Real Estate Credit in Turkey: Mortgage Options for Local and Foreign Buyers

Real Estate Credit in Turkey: Mortgage Options for Local and Foreign Buyers

Buying property in Turkey has become increasingly attractive, not just because of its location and lifestyle, but also due to the availability of real estate credit and mortgage options offered by local banks. Whether you’re a Turkish citizen or a foreign investor, it’s possible to finance a property purchase through a Turkish bank under specific terms.

Who Can Get a Mortgage in Turkey?

Both Turkish nationals and foreigners from eligible countries can apply for real estate loans. As long as there is reciprocity between Turkey and the buyer’s country, foreign nationals may access mortgage options through Turkish banks.

Some nationalities may have restrictions, so it’s important to verify eligibility before starting the application.

Mortgage Terms and Conditions

Loan conditions vary by bank, but typical terms include:

• Loan-to-value ratio: Up to 50–70% of the property value
• Loan terms: From 1 to 10 years, some banks may offer up to 15 years
• Interest rates: Usually 1.5% to 3% monthly, depending on currency and bank policy
• Down payment: Required portion is typically 30–50% of the purchase price
• Currencies: Mortgages may be offered in Turkish Lira, USD, or Euro depending on the bank

Interest rates and terms are subject to change, so comparing offers from different banks is recommended.

Documents Required for Foreigners

To apply for real estate credit, foreign nationals need to prepare the following:

• Valid passport copy
• Turkish tax identification number
• Proof of income (translated and notarized)
• Bank statements from the last 3–6 months
• Property appraisal report (SPK-licensed)
• Property title deed (TAPU) details
• Residency permit (optional but helpful)
• Credit history report (if requested by bank)

Turkish banks usually require proof of repayment ability, which can include salary slips, rental income, or savings.

Property Valuation Report Requirement

Before granting a loan, the bank will request a licensed appraisal report to determine the property’s market value. This is a mandatory step and often coordinated by the bank itself.

The final loan amount is calculated based on this valuation, not the sale price.

Which Banks Offer Real Estate Loans?

Many national and private banks in Turkey provide real estate loans to both domestic and international clients. Common banks include:

• Ziraat Bank
• Halkbank
• İş Bankası
• Yapı Kredi
• Garanti BBVA
• Akbank

Some banks specialize in offering services to foreign clients and provide English-speaking representatives for easier communication.

Alternatives to Bank Credit

In addition to bank financing, some construction companies in Turkey offer installment plans or developer financing. These usually require no credit check and have flexible terms, although interest rates may be slightly higher.

Such offers are most common for off-plan or new-build properties and can provide an easier alternative for buyers without local banking history.

Benefits