New Legislation for Off plan mortgages in Turkey

Previously unavailable in Turkey, the new legislation allows foreigners to obtain a mortgage to buy off-plan property, which is excellent news for investors and those who don’t have 30-40% in cash to put down. Deniz Bank is the first Turkish bank offering this type of mortgage, but it is likely that most of the major banks will follow on. (see Also – Non Resident Mortgages in Turkey )

Mortgages for off plan property in Turkey currently apply to EU, USA, Australian and New Zealand citizens only. Before a Mortgage can be applied for by the client, the developer has to be pre-approved by the the lending bank in Turkey. This process is done by a Mortgage Broker acting on behalf of the Turkish Bank.

Basic Lending Terms for ALL mortgage products as follows:
Loan to Value: up to 65% (of valuation)

Interest rate: 6.96% pa (Euro) For a short period of time only, this is a promotional rate. Please note: normal Euro rate is 7.8%pa
8.4% pa (GBP)
8.4% pa (USD)
Turkish Lira also available

Nationalities: Any country that has a reciprocal agreement with Turkey (eg: Australia, New Zealand, EU & US)
Term: 5 to 20 years
Minimum Loan: €30,000
Maximum Loan: No Maximum
Interest Type: Fixed
Age of applicant: 25 to 70 years of age
Maximum age at loan maturity: 70 years of age
Early Repayment penalty: 2%
Requirements: - DASK (natural disaster Insurance) - arranged by Lender.
Property Insurance - arranged by Lender

Off Plan Property mortgage:

*Offered with full bank guarantee from Developer for total loan amount*
Costs: - 1.5% lender commitment fee
Valuation Fee approximately (paid by Lender)
DASK insurance & Property Insurance

Advantages of ALL mortgage products:
Self employed & retirees accepted
No geographical restrictions within mainland Turkey
Full rental income is taken into account when banks assesses affordability for client
A completed property is defined as 75% built
No requirement to become a Turkish resident
Loan offer lasts for 4 months. Can be extended to 18months (an extra 1% commission will be required to process this request)
No life insurance required
Loan interest rate fixed during full duration of loan

Contact us now for advice on Turkish Mortgages and we will arrange for our advisor to call you and arrange a ‘mortgage in principle’ before you visit.

Mortgage Product Types:

a) Completed Property Mortgages:
For properties that are completed, or are in the process of being completed (75% completed and up), the Lending terms on page 1 of this document are relevant.

b) Off Plan Mortgages:

To offer the ‘off- plan’ mortgage, both the Developer and their developments that require ‘off plan’ mortgages will need to be initially approved by the Lender. (Note: This process could take up to three to four weeks.)

The lender may already be approved, if not yet; you would be notified directly. The Developer or their Marketing representative (Realtor) will then have to contact their bank or mortgage broker to arrange Lender approval.

c) Re - Mortgage / Equity Release Mortgages:
Allows a client to withdraw up to approximately €40,000 (75,000 YTL) for any purpose. Loan term up to 5 years at the interest rate of chosen currency eg: 6.96% (Euro).

Information taken from Global Mortgages Direct

Mortgages for Off plan property in Turkey