How to Get a Loan for Your Property Purchase in Turkey?

In the Turkish real estate market, you can locate the property at a price that works for you for a long period. The choices you have for obtaining a Turkish bank loan for your property will be examined if you do not already have the funds necessary to do so. To put it another way, property loans are loans that consumers can use to buy items like homes or land.

Most people’s salaries may not be sufficient to cover the cost of the home they desire, making it difficult to raise the necessary funds to make a down payment (Erol & Patel 2005,277). To buy a home, most people prefer to take out a loan. The lender holds the borrower’s property as collateral for this sort of loan. When a borrower fails to pay back the loan, the lender might foreclose on the property to recoup their investment. When the borrower receives the money from the lender, purchases property, and pays back the loan, the mortgage or property loan is over.

An individual must be unable to pay for the property outright to get a property loan. Many people would purchase land or a house, but they lack the financial means to do so. In this case, property loans could be a fantastic advantage. When a borrower purchases a home, they take out a loan and pay it back at a later period. Another aspect is the desire of investors to shift their money into other types of investments, such as mutual funds (Karakas & Ozsan 2005,37).

As a form of capital investment, some individuals and organizations may be able to donate money. It is because of this that they can make money by disbursing loans and mortgages and collecting interest. The borrower must adhere to a set of rules to get the money from this type of loan. A borrower must meet all of the lender’s standards to get a loan (Karakas & Ozsan 2005,37).

Increases in Turkish investment rates have been a direct outcome of Turkey’s Lira devaluation. A decline in the value of real estate occurred as a result (Erol & Patel 2005,275). As a result, you can have a high-quality home at a cheap price. But they must follow the lender’s terms based on how the lender believes the borrower can acquire a loan. Potential lenders will assess your eligibility based on the information provided in this loan application (Erol & Patel 2005,275). If you’re applying for a mortgage, lenders will often look at your employment type, age, income, credit history, and property type (Mugleston 2021,3).

What is a Mortgage?

A mortgage is an important type of Security. A mortgage is just a transfer of ownership interest in a specific piece of real estate. In contrast to a sale or a gift, the mortgage does not transmit an absolute interest in the property that is being mortgaged.

Is the transfer of an ownership interest in immovable property in or to the payment of money that has been borrowed, is owed, or is due to be owed in the form of a debt or financial obligation.

Mortgage loans, on the other hand, come in two flavors: fixed and variable. It is possible to have a fixed interest rate over a term of 15, 20, or 30 years. In a short-term loan, the borrower will be saddled with a large monthly payment. However, the lower the monthly payment amount will be if the time is considerable. Even if interest rates rise, the borrower will still pay the same amount each month on this fixed-rate mortgage.

Secondly, there is an adjustable-rate mortgage or variable-rate mortgage loan. It may be fixed for a short time, but it will fluctuate during the loan, with the monthly payment of the borrower increasing automatically if market interest rates rise.

What is the Difference Between Mortgage and Housing Credit?

Housing credit is made especially for people who need financial help in purchasing or constructing a residential property. Unlike, the mortgage loan has no limits on the usage of the loan value. The main difference between house credit and mortgage loans makes it clear that each has its purpose in Marthe ket today.

Who is the Mortgagor?

A mortgagor is a transferor, in other words, “the borrower” who is seeking a loan to purchase a home. In other terms, the mortgagor is defined as the debtor and the property owner, whereas the creditor is the bank and mortgage.

Can foreigners get a mortgage in Turkey?

Yes, foreigners can get a mortgage in Turkey.

While this practice was common in Turkey just a few years ago, it has now faded. The situation has deteriorated for foreigners, including Turkish and non-Turkish alike.

Turkey does not limit the sort of property that can be mortgaged by foreigners or the interest rate that they can get. However, only Turkish banks can secure mortgages on Turkish real estate and foreigners are only permitted to do so with Turkish banks. Loans from Turkish banks controlled by foreigners are subject to different terms and conditions. Turkish government-owned and non-government banks charge interest and fees that are considerably different from those charged by the Turkish bank.

Make sure you’re on the right side of the law by checking with Turkish banks for a real estate business. Getting a mortgage in Turkey has been more expensive and this is true, especially for banks that use various techniques to protect themselves, such as hiring better appraisers and undervaluing the properties they want to lend money on. People in Turkey can take advantage of a variety of interest rates given by various financial organizations, the most popular of which is fixed interest rates. Government pressure on banks to lend to foreign buyers is widely accepted.

Turkey’s economic saviors are commonly referred to as real estate companies because of their widespread support and their role in helping the country recover from the global financial crisis. Even despite this, there isn’t a single commercial product or service that is both complete and successful. Many foreigners who live in Turkey are concerned that they are applying for a mortgage although their salary is low, which is a regular issue. The banks demanded a statement of account from the borrowers to verify their ability to repay the loan.

If you wish to buy a house in Turkey, there are a few Turkish banks that will give you money. High loan-to-value ratios are expected in the foreseeable future, but borrowers should be prepared for them. It is important to consider a foreigner’s ability to repay a loan when assessing whether or not they are eligible for one from Turkey. Finally, the monthly gross income of the borrower is determined to see if the loan exceeds 33% of that figure.

One of the most important things to avoid is foreign currency. Therefore, mortgages are lent in the national currency of non-resident foreigners (USD/EUR/GDP) as a result.

How to Get a Mortgage in Turkey?

The process is straightforward but involves a lot of paperwork. First, the borrower should apply to the bank, coordinated by a lawyer or real estate agent. You can follow the steps below on how to get a mortgage in Turkey.

  1. Determine your budget and funding requirements.
  2. Contact your mortgage broker to compare and discuss your choices and get pre-approval.
  3. Obtain your Turkish tax number.
  4. Review the Tapu with Land Registry.
  5. Register with the lang registry to finalize and sign the contract.
  6. Sign the agreement and dispatch the deposit.
  7. Here, you should provide a detailed application for your mortgage or apply from zero.
  8. The title deed is ready now.
  9. Lastly, take your ownership papers when the Tapu is prepared upon paying the total amount and taxes.

What are the Interest Rates on a Turkish Mortgage?

Weighted Average Interest Rates for Banks Property Loans between 2015 and 2021.

Date Housing (TRY)(Flow Data, %) Consumer Loan (TRY)(Personal+Vehicle+Housing)(Flow Data, %) TP Consumer Loan (TRY)(Personal+Vehicle+Housing)(Including Real Person Overdraft Account)(Flow Data, %)


17,88 22,06



17,94 22,24 23,81
1.06.2021 18,00 22,39



17,79 22,41 23,61
30-04-2021 18,06 22,79



17,88 22,45 23,41
26-02-2021 17,85 21,81



18,13 21,73 22,39
25-12-2020 18,69 22,14



16,10 20,54 18,82
30-10-2020 15,18 18,70



14,80 17,85 17,20
28-08-2020 13,31 16,57



9,22 10,77 11,92
26-06-2020 9,01 11,00



11,13 11,84 13,02
24-04-2020 11,49 8,45



11,41 14,43 15,52
28-02-2020 11,32 13,61



11,50 14,18 15,07
27-12-2019 12,64 14,69



12,88 15,74 17,00
25-10-2019 13,10 17,12



13,06 17,41 19,33
30-08-2019 12,88 19,28



20,49 26,34 26,57
28-06-2019 22,23 27,86



21,86 28,86 28,91
26-04-2019 19,35 26,12



17,10 22,07 24,29
22-02-2019 21,47 25,18



24,93 27,97 29,30
28-12-2018 27,39 31,74



28,38 33,78



29,28 36,96



28,00 37,03



23,15 29,82 27,95
27-07-2018 19,43 24,49



13,14 19,61 21,05
25-05-2018 13,01 18,02



14,84 18,81 20,66
30-03-2018 14,96 18,56



14,70 18,88 20,70
26-01-2018 14,08 18,69



13,78 17,85 19,71
24-11-2017 13,14 17,19



13,01 17,03 19,04
29-09-2017 12,88 16,53



12,69 16,62 18,47
28-07-2017 12,12 16,07



11,78 15,82 19,02
26-05-2017 11,71 15,85



11,45 15,33 17,43
31-03-2017 10,95 14,69



11,28 14,97 17,30
27-01-2017 11,46 15,13



11,43 14,51 17,03
25-11-2016 11,48 14,63



12,09 15,43 18,02
30-09-2016 12,05 15,28



12,07 15,64 18,67
29-07-2016 13,72 16,42



13,79 16,37 19,30
27-05-2016 13,93 16,43



14,13 16,62 19,57
25-03-2016 14,44 16,98



14,43 17,01 19,85


14,41 16,90


25-12-2015 14,07 16,42



13,98 16,36 19,70
30-10-2015 14,41 16,84


25-09-2015 13,74 16,54



12,93 15,36 18,36
31-07-2015 12,33 14,80



12,14 14,48 17,76
29-05-2015 11,60 14,25



10,96 13,57 16,42
27-03-2015 10,95 13,48



10,75 13,54 16,49
30-01-2015 10,91 13,77


What are the Requirements for Mortgage in Turkey?

Before applying for a mortgage in Turkey, make sure you have all the requirements below.

  • The borrower’s age should be between 25-70 years old. For example, a borrower who is 60 years old receives a loan for ten years but a borrower for 65 years only has five years.
  • Life insurance is mandatory.
  • Proof of document for an existing house outside Turkey.
  • The payback period of the loan is 15 years only.
  • Personal tax number returns for the last two years.
  • The loan currency is holding the US dollar, British pound, Euro, or Turkish lira only.
  • Borrowers must choose the fixed interest rate.
  • Early repayment opportunity with 1% – 2% penalty.
  • The Insurance document for the property (DASK) is mandatory.
  • The minimum value of the loan is US$28,000 or equivalent to the Turkish lira.

What are the Documents Needed for a Mortgage in Turkey?

The documents needed for a mortgage in Turkey are can be found in the table below.

Individual Employed Business owners Pensioners

Documents required to apply for a mortgage loan



Turkish return tax number taken a year before, issued in the Mortgagor country.


A copy of the document affirming the right of ownership (tabu) and technical passport of the property purchased.



The buyer’s passport is translated into Turkish and certified by the bank or notarized.



Letter of Employment issued by the employee.


Photocopy of the seller’s passport.



Borrower’s statement of account for the last 6 months stamped & signed.



Company Registration Certificate


Document proving common shares in the case of partnership and activities of the company done for the previous two years.


Information on other borrower incomes ( Payment of apartment, loans, monthly expenses, etc..)




Valid documents ensure the borrowers’ property title ( Real estate, vehicles, stocks, etc..)




A statement of proof showing that borrowers have no loan or other debts to any bank




Turkish Tax Number




Mortgage loan application signed by the borrower




After collecting all the documents needed and translating them to Turkish, they will be delivered to the Bank for examination. The process follows the steps below.

  • The bank will review the documents with the real estate agent and then issue a pre-approval document, including the loan value, interest rate, and payment terms.
  • Bank will provide the offer period of -4 months. At this phase, the borrower should consider paying US$170 to the company for its services.
  • Start with the Tapu certificate of title registering process, in which the Tapu will be given to the new owner, and the Bank imposes the mortgage.
  • The buyer receives the certificate of title when the Bank will pay the loan through transfer to the real estate agency into their account.
  • When the loan is paid, the borrower should pay the additional expenses to the bank at 2%.

How many mortgages Can You Get in Turkey?

Foreigners can arrange their mortgages through Turkish banks, but each bank carries different offers. For example, most banks are ready to offer you 70% of the property value, in very few will give you a higher percent, while other banks will limit loans up to 65%.

Most of the banks in Turkey can lend you a loan of around 75,000 USD which makes approx. 67,500 in Euros, but here you’ll have to repay in USD currency. Also, loans are offered in Dollars, Euros, or Pounds for borrowers who want to avoid exchange rates.

What are the Payment Options of Mortgage?

After receiving your loan from the bank, you must pay it back upon the payment terms agreed on. You will pay your debt in monthly mortgage installments to the bank from a bank located in Turkey by opening an account in the same bank you granted the mortgage to and then transferring the amount.

Although you can make payments from the bank in your home country via transfer or cash, neither of these methods is recommended since both can create problems that you want to avoid.

You must always pay your debt on time. Otherwise, a 1% to 2% penalty may apply to the monthly payment.

What are the Banks that You Can Get a Mortgage in Turkey?

If you have a residence permit or work permit in Turkey, you can take out a loan to purchase the property. However, each bank has its own rules, payment plans, interest rates, different contracts, and fees they will charge you.

Banks, including Garanti Bankasi, Kuvyet Turk Bank, Ziraat Bank, and Deniz Bank lend mortgages to foreigners in Turkey. The top banks to get a mortgage in Turkey are listed below

  • Deniz Bank is one of the leading banks providing mortgages to foreigners up to 60 % for 15 years. They give the loan with three different foreign currencies USD, EUR, and GDP. Also, installments are accepted in other foreign currencies.
  • Garanti BBVA Bank provides fixed and variable interest rate mortgage options in different currencies for 240 months, the max term of the loan. The max loan value is 500,000 TRY or the equivalence of the foreign currency. Furthermore, a special offer is made for EU citizens, in which they have the right to take a loan for 65 % LTV, while non-EU citizens for 50 % LTV.
  • Turkey Finance Banks provides a 12-year payment plan with a reasonable allocation fee rate. In addition, the mortgage loan is up to 75% LTV for the purchased property.

Which Bank is Best in Turkey for Foreigners?

For foreigners, it is possible to open an account at any bank in Turkey. However, there are banks that foreign nationals prefer the most. The bank preferred for opening an account should be able to meet the needs and expectations of individuals and offer the best service. It is also important that the preferred bank supports opening an account in foreign currency. The most preferred Turkish banks by foreigners living in Turkey are listed below:

  • Yapı Kredi Bank
  • Ziraat bank
  • Turkey Is Bank
  • HSBC
  • Garanti Bank
  • Akbank
  • Denizbank
  • Halkbank
  • Vakifbank

How Long Does It Take to Get a Loan in Turkey?

After the branch officer receives your loan application, the approval process is completed within a few minutes or a maximum of 2 working days, depending on the working principles of the banks.

How to Find Property in Turkey?

If you’re looking to find a property in Turkey as a foreigner, some conditions must be considered before making any decision.

Yet, Turkey today is one of the top countries for property purchasing in the real estate market. However, the Turkish market had few protections for the property buyer until the government took the hand and worked hard to improve this situation.

There are essential steps to follow upon deciding to purchase a property in Turkey. Follow these steps and find the property you’re looking for.

  1. Conduct research about the Turkish market to collect information about the lifestyle, the culture of the country, and the kind of properties that meets your budget and needs.
  2. If you haven’t been to Turkey before, you will need to visit it to decide which area you want to reside in, knowing each city has its colors, culture, and lifestyle.
  3. Find a professional certified real estate agent. They can provide you with many options for properties across Turkey, give you answers to your questions, and take you on a free ride to check projects constructed and done.
  4. Go on a property tour guide with the real estate agent you choose that will provide you with detailed information about the prices of properties depending on the region and the city you choose.
  5. Get some advice from a lawyer about your property choice within location and fair price.

How Much Deposit Do You Need to Buy a House in Turkey?

On the date of completion of the contract, to secure the property, you will be asked to leave a non-refundable holding deposit. The holding deposit of a property is 2,000 USD which is given to the seller of the property.

What are the Prices of Houses in Turkey?

As a result of the country’s diversified terrain, there is no limit to Turkey’s enchantment. In Turkey, deciding where to reside might be difficult. Take a look at Turkey’s top locations if you’re trying to figure out where to go.

Turkey’s largest city, Istanbul, sits on two continents, Asia and Europe, and is the country’s commercial and cultural center. The city of Istanbul has always been a popular destination for investors looking to buy and sell property and enterprises.

There is a wide variety of properties for sale in Istanbul nowadays, prices of houses in Istanbul from low-cost apartments to high-end luxury apartments and villas. It was easy for investors to take advantage of new buildings being built with young professionals and new enterprises being founded when the Turkish lira dropped in value in 2018.

With an average price of US$66,800, the Beylikduzu neighborhood on Istanbul’s European side was attracting investors in 2020. Properties with sea views can also be purchased for US$600,000 in Zeytinburnu and Bakirkoy. Families in Bahcelievler and Bahcesehir may be of interest to investors seeking a cheaper price point.

Kucukcekmece and Kadikoy homes, on the other hand, are quietly costly since they are located in the heart of Istanbul, which is a major draw for buyers. In addition, transportation is easier to reach in this neighborhood because of the proximity of Metrobus and Metro stations. Because of this, the average price of each property is US$140,000 and US$250,000.

Bodrum is the ideal location for worldwide brands and high-end properties in terms of luxury and leisure. Property prices in Bodrum range from US$957,092 to US$1,544,620.

If you’re looking for an all-year-round vacation spot with an abundance of history and culture, Antalya is the place for you. Antalya is home to premium residences aimed at young and established professionals. Side is the finest option for families looking to buy or rent a home in the Sunshine Valley. Kemer and Belek, on the other hand, are ideal locations for high-end residences and villas. In Antalya, the cost of property fluctuates throughout the year, with the prices rising each season.

Is Buying Property in Turkey a Good Investment?

Yes, buying a property in Turkey is a good investment.

The first thing you should know, Turkey has one of the fastest-growing economies in the world today. People always choose to move and live in Turkey, because it’s a cheap country compared to European countries. The cost of living is relatively low because the price of renting a house is approx. 300 USD, buying clothing is cheap, and services and expenses are low. However, the prices of properties of the sale in Turkey are much lower than properties in Europe of the Gulf.

Turkey is the only country on the map located between Asia and Europe, literally place in the heart of the world. So even their transportation costs and the system are wide easy and can access from most places around the world.

The real estate market in Turkey provides a great choice of properties for sale for every budget.

The most important benefit of investing in Turkey is getting a Turkish residency or citizenship granted by the government by buying a property.

Does Turkey Grant Citizenship to Home Buyers?

Yes, Turkey grants Turkish citizenship to foreigners who complete the following upon buying a house for 400,000 USD with the new regulations. You must complete the following steps to obtain citizenship.

1. Get a tax registration number: You need your passport and photo to obtain the tax registration number from any tax office in Turkey.

2. Open a Turkish bank account: You need your passport, tax registration number, and rent contract with the residence permit ID received from the Turkish government.

3. Finding a property: It’s necessary to purchase a property for 400,000 USD to register it at the land registry. After that, the property can’t be sold nor transferred for a minimum of three years.

4. Buying the property: Get title deed registry with not to be sold for three years. Then payment must be one through a bank transfer and document the transaction by a receipt.

5. Obtain the certificate of Conformity: Bank receipt showing that the amount has been paid to the seller and real estate valuation report requested to apply to the Ministry of Environment and Urbanization.

6. Application for Turkish Residency Types: If you hold a tourist visa, you can apply for a tourist residence permit. Your residence permit validity will be up to 1 year. You must present the property ownership documents or rental contracts in Turkey to officials. Application documents must be translated into Turkish and notarized in the Turkish Notary office.

If you hold a business visa or open a business in Turkey, you can apply for a business residence permit. Residence permit validity will be up to 1 year. Evidence of financial independence and the ability to support dependent family members is required.

If you have lived in Turkey, you can apply for long-term residence. You must be stayed in Turkey for at least eight years. You can’t get financial help from the Turkish government and must be financially self-stable. No criminal record is required.

If you want to study in Turkey, you can apply for a student residence permit. You need a letter of acceptance from the Turkish educational institute, evidence of Turkish private health insurance, and a financial self-sufficiency declaration.

If you are a victim of human trafficking, then you can apply for a residence permit. You can get residence permit validity for thirty (30) days. The residence permit extension is for six (6) months.

In addition, if you have a Turkish spouse or relative, you can apply for a family residence permit, which is valid for three years.

If you are suffering from the displacement of civil war, violation of human rights, and refugees, you can apply for a humanitarian residence permit valid for up to one year.

Documents required for Turkish residency are listed below.

  • Residence permit application form.
  • Four biometric photographs.
  • Original passport photocopy.
  • Notarized Rental Contract
  • Statement of Account holding the amount of 1,000 USD approx.
  • Health Insurance is valid for a year.

Documents for Turkish citizenship application are listed below.

  • Birth certificate
  • Certificate of residence
  • The vital record that shows all family members (Husband, Wife, and Children) / Divorce Certificate / Marriage certificate
  • Health Insurance 
  • 12 biometric photos taken on white background 
  • Original Passport 
  • Original and notarized Turkish translation of these documents 
  • Power of attorney 
  • If the applicant is widowed, the spouse’s death certificate
  • Application form

Other options for receiving Turkish Citizenship include:

  • Invest a minimum of five hundred thousand United States dollars (USD 500,000) for a minimum term of three (3) years in a fixed deposit in Turkey.
  • Purchase real estate for no less than two hundred and fifty thousand United States dollars (USD 400,000)
  • Create job opportunities for a minimum of fifty (50) employees.

Is It Safe to Buy Property in Turkey?

Yes, it is safe to buy a property in Turkey. 

If you want to do things right and make it easy for you, you should search for a professional real estate company that provides you with years of experience in this field and confidence. 

When specifying your requirement to the real estate agent, they will fulfill your needs with their luxurious properties. 

There are great locations with a sea view and green areas to purchase a property in Turkey. You can check the destinations below.

  • Istanbul including the district of Kadikoy, Uskudar, Sariyer, Zeytinburnu, Bakirkoy, and Atakoy.
  • Trabzon 
  • Antalya
  • Bodrum
  • Izmir
  • Sakarya

Is There Property Tax in Turkey?

Yes, there is, but it depends on residency.

If you’re a citizen of Turkey, you have to pay income tax in Turkey. If you want to buy a property in Turkey, you will need to pay a tax property. Even if the amount is small, you will have to pay it both ways.

The real estate tax in turkey is familiar with the taxes you pay to the local government in any country. It is calculated on the value of the property you purchase (land or buildings). In metropolitan cities, taxes are set between 0.1% and 0.3% of the notional value per year. VAT on Property in Turkey doesn’t require property owners to pay VAT on the sale of a real estate agent unless they happen to be a real estate agency or corporate entity.

Capital Gain Tax in Turkey is for the sale of immovable property. If this property is owned for less than five years, you’re required to pay the income tax on the money you receive. But after five years, you are exempt from paying the income after holding the property.

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