Turkey Property Mortgages

 

Mortgages are now available for Turkish properties from a select number of European and Turkish lenders. Our recommended sources are Denizbank in Turkey and BNP Paribas of France.  In addition DHB of Netherlands and major Turkish banks offer finance for purchasing Turkish real estate at varying rates of interest.

Please see below some essential reading relevant to Turkish mortgages offered by BNP Pariba

  1. Turkey property Finance and Mortgage Guide – View
  2. Turkey property mortgage approval in principle – info required View
  3. Turkey property mortgages – loan to equity – interest rates July 2009 (check with us for current rates ) View
  4. Turkey property mortgage repayment calculator (based on 2010 rates) View

How to get a Mortgage from DenizBank?

  1. Please bring all the required documents to the nearest branch of your new house. Our friendly branch staff will inform you about all the conditions and benefits of the loan and answer your questions on the spot;
  2. After your approval we will complete the application form and start the application procedure;
  3. The bank will send an appraiser to your house to be and appraise your property;
  4. Maximum 5 working days later the branch will inform you about the offering that we can do to you;
  5. You will be handed out the pre term sheet that you can use as our written promise to you;
  6. After presenting the pre term sheet to you, you are asked to sign the pre term sheet and pay the commitment fee;
  7. After signing a period of maximum four months starts to arrange:
    • DASK: (nature disaster insurance);
    • House insurance; Iskan Ruhsati (house permission);
    • Approval of the ministry of Defense (Savunma Bakanligi);
    • Tax number and opening a demand deposit account.
  8. After collection of all the documents mentioned above the bank will give its final approval and will make an appointment to pay out the loan and put the mortgage on the title deed at the Tapu office.

Off plan mortgages

DenizBank makes deals with project developers to finance uncompleted houses in a project. Sometimes DenizBank gives loans before completion of the house or gives you upfront the commitment that DenizBank will pay out a loan after completion. Go to your nearest branch to ask for our current joint promotion with developers and ask for the special conditions.

The features of the loan:

Issue Feature
Loan to value Maximum 70% of the appraisal value (not always equal to the sales price)
Debt to income Maximum net salary to spend to total loans installments: 50%
Valuation of income Only salary income transferred to a bank account, average profit of the last 2 years, pension income
Maximum amount No maximum
Minimum amount € 30.000 euro
Nationalities All countries that have a reciprocal agreement with Turkey
Maturity 5,10,15 and 20 years
Loan in YTL Yes
Loan in euro Yes
Loan in Dollars Yes
Loan in British pound Yes
Interest types Fixed
Early repayment Possible (2% penalty fee)
Property valuation Done by DenizBank or appointed appraisal by Denizbank, pre-valuation paid by DenizBank
Age of application 25 -70 years
Maximum age at end of maturity 70 years
DASK: nature disaster insurance, House insurance To arrange via DenizBank
Life insurance No obligation
Monthly installment payments Automatic payment from a DenizBank account
Validity of the pre offer 4 months
Extension of validity of the pre offer (except interest rate) Until 18 months (1% extra commission required)

Supporting documentation for your mortgage application

 
Employed
Self employed
Retired
Official tax statement of the most recent year in the home country (for example P60)
Yes
Yes
Yes
Copy of the Tapu of the object that will be bought (“Kat mulkiyet tapusu” or “Kat irtifak tapusu + yapi kullanim izin belgesi”)
Yes
Yes
Yes
Copies of passports made and signed by the branch or notary
Yes
Yes
Yes
Income statement of employers signed by the employer
Yes
 
Yes
Official document/declaration from a public notary/cadastre that the person who signed the income statement is allowed to sign
Yes
 
Yes
Bank statements declaring the income (not older than 3 months)
Yes
 
Yes
Annual report of the holding company for the last two years together with a copy from the shareholder register
 
Yes
 
Documents proving monthly financial obligations (rent, house loan installments, alimentation)
Yes
Yes
Yes
Overview of private assets proven by official statements
Yes
Yes
Yes
Overview of private debts proven by official statements
Yes
Yes
Yes
Signed application form
Yes
Yes
Yes

* Official translation of all documents into Turkish is required (the branch is happy to assist on this).