Until now, mortgage lending was not available to foreigners in Turkey, and they usually used interest-free installment plans from developers until construction was completed. Recently, Denizbank, one of the leading banks in Turkey, announced the possibility of providing mortgage loans to foreigners. Real estate companies were the first to know about this news, as they were sent a newsletter from Denizbank.
Several years ago, Turkish banks still gave loans to citizens of other countries up to 50% of the market value for up to 10 years, then this practice was stopped. However, requests for mortgages from foreign buyers are still periodically received. The conditions proposed by Denizbank are more strict, the loan will be quite expensive, 15% per annum, and obtaining it will require the buyer to have approximately 60% of the cost in hand, because the maximum provided is half the appraised value of the property (not the market value, which is usually higher). However, additional opportunities are still opening up for foreign buyers and this is a good sign. Mortgages for foreigners in Turkey are possible again.
Mortgage lending conditions from Denizbank:
- mortgages are provided only for the purchase of apartments in new buildings that have already been put into operation, and do not apply to the secondary market
- the loan amount cannot exceed half of the estimated value of the property
- the mortgage term is up to 5 years, the amount is provided in dollars and euros, with a monthly interest rate of 1.25%.
