Non Resident Mortgages Turkey

Non – Resident Mortgages in Turkey

Some of Turkey’s leading banks are now offering excellent terms on non resident mortgages in Turkey.

Mortgages are relatively new in Turkey, and Terms vary according to the bank, with many only able to offer ‘repayment only’ options. However, GarantiBank are currently offering a large range of products and services, from fixed rate mortgages to variable rate mortgages, based on different needs, preferences and risk preception, in local currency (YTL), 1.29 % per month or in foreign currency starting from 0.47 % per month with terms up to 240 months.

If you are thinking of buying a property in Turkey in the near future, we can arrange for our advisor to call you and arrange a ‘mortgage in principle’ before you visit. The advantage of a pre-agreed mortgage figure is that you will then have a definite budget in mind before you travel, allowing you to view properties that you know you can afford. Contact us now for advice on Turkish Mortgages >>

The Mortgage Application is generally very easy, but the process can be slow due to the administration system in Turkey. If you are genuinly interested in buying a property, it is possible to obtain a pre-acceptance before you start viewing property. This will give you a much better idea of what you can afford to buy before you start looking.

To apply for a non-resident mortgage in Turkey, the following documents will need to be submitted to the bank:
* Turkish Tax ID Number. (This can be arranged by an estate agent or lawyer and is a very simple process)
* Appraisal report fee (YTL 500)
* Completed Application Form (provided by the bank from whom you will be obtaining the mortgage)
* Original or photocopy of the passport
* Credit Bureau record from applicant’s home country
* Utility bills stating address in your home country

For GarantiBank the following terms apply, although some banks will increase the Maximum to 75% LTV or purchase price – whichever is lower. Non Resident mortgages are usually only available on the coast and in Istanbul although this may change in the future.. In some smaller villages, it is still the case that you will be required to form a company in order to purchase property there. (Rates and offers change constantly as banks become more competitive. Contact us for latest information).

Terms:
* Origination available in New Turkish Lira (YTL), Euro, US Dollar, GP Sterling and Swiss Frank
* Maximum loan term of 20 years
* Maximum loan-to-value (LTV) ratio of 65 % of the appraised value
* Maximum loan amount of YTL 500.000 or equivalent in foreign currencies
* Life insurance, personal house insurance and Natural Disaster Insurance Authority (DASK) will be requested

For off plan property, mortgages are not available until the property is complete. Having an offer in writing will ensure that you are able to obtain funds when the time comes, but until the banks inspect the property on completion, the exact valuation will not be known. Further information on off plan mortgages in Turkey >>

Below is a monthly installment table (based on rates Jan 2008) for available currencies and terms, based on a credit amount of 100.000 in each currency,

	Currency YTL			EURO
Term (Months)	Interest Rate (Monthly)	Interest Rate (APR)	Monthly Payments	Interest Rate (Monthly)	Interest Rate (APR)	Monthly Payments
12	%1,34	%16,08	9.076,87	%0,55	%6,60	8.634,25
24	%1,34	%16,08	4.900,13	%0,55	%6,60	4.459,15
36	%1,34	%16,08	3.519,65	%0,55	%6,60	3.069,45
48	%1,34	%16,08	2.838,13	%0,60	%7,20	2.403,91
60	%1,34	%16,08	2.436,06	%0,60	%7,20	1.989,57
72	%1,34	%16,08	2.173,59	%0,60	%7,20	1.714,52
84	%1,34	%16,08	1.990,77	%0,60	%7,20	1.519,06
96	%1,34	%16,08	1.857,59	%0,60	%7,20	1.373,35
108	%1,34	%16,08	1.757,38	%0,60	%7,20	1.260,78
120	%1,34	%16,08	1.680,12	%0,60	%7,20	1.171,42
132	%1,34	%16,08	1.619,44	%0,60	%7,20	1.098,92
240	%1,34	%16,08	1.397,26	%0,60	%7,20	787,35

	Currency USD			GB Sterling
Term (Months)	Interest Rate (Monthly)	Interest Rate (APR)	Monthly Payments	Interest Rate (Monthly)	Interest Rate (APR)	Monthly Payments
12	%0,60	%7,20	8.661,90	%0,70	%8,40	8.717,35
24	%0,60	%7,20	4.486,33	%0,69	%8,28	4.535,51
36	%0,60	%7,20	3.096,86	%0,68	%8,16	3.141,02
48	%0,60	%7,20	2.403,91	%0,67	%8,04	2.443,17
60	%0,65	%7,80	2.018,08	%0,71	%8,52	2.052,62
72	%0,65	%7,80	1.743,57	%0,70	%8,40	1.772,92
84	%0,65	%7,80	1.548,68	%0,69	%8,28	1.572,61
96	%0,65	%7,80	1.403,52	%0,68	%8,16	1.421,81
108	%0,65	%7,80	1.291,53	%0,67	%8,04	1.303,95
120	%0,65	%7,80	1.202,73	%0,67	%8,04	1.215,39
132	%0,65	%7,80	1.130,80	%0,67	%8,04	1.143,70
240	%0,65	%7,80	824,04	%0,67	%8,04	838,93

Note:Terms, conditions and payment plans will vary from bank to bank and change over a period of time. Figures given above for non resident mortgages in Turkey are from GarantiBank Jan 2008