Your Guide to Financing a Property in Turkey with Estates Istanbul

1. Explore Finance Options in Your Home Country

One of the attractive aspects of Turkey’s emerging real estate market is the affordability of its properties. Many expats, enticed by the allure of living in Turkey, have chosen to sell their homes in their native countries, using the proceeds to buy their Turkish dream property outright. For those eyeing a summer retreat, drawing from the equity of their primary residence or securing a second mortgage from their home country can be strategic choices. Before diving into Turkish financing, consider the options at home. You might find them more favorable!

2. Taking a Mortgage from a Turkish Bank

While it’s feasible for foreign buyers to secure mortgages in Turkey, it’s vital to tread cautiously. Several Turkish banks cater specifically to foreign buyers, even providing English-speaking advisors to guide you through the process. Some offer attractive deals, especially for off-plan properties, where financing is tied to construction milestones. Typically, banks may finance up to 70% of the property value and offer multicurrency loan options.

However, a word of caution: Turkey’s interest rates can be steep. If you’re buying property primarily for rental income, high borrowing costs could diminish your returns. Hence, consider fine-tuning your budget to avoid mortgages or to minimize borrowed amounts.

Also, ensure your property has an iskan (habitation license) and is free from outstanding debts. This license guarantees the property adheres to governmental living standards. It’s often the case that older properties lack this license, pushing many foreign investors toward newer builds.

When applying for a Turkish mortgage, be prepared with:

• A signed application form
• Notarised passport copies
• Recent bank statements proving income
• Proof of stable employment or a two-year financial record (if self-employed)
• An overview of personal assets and debts
• Turkish tax number
• Credit rating certificate from your home country
• A copy of the property’s title deeds.

3. Developer Financing: A Popular Choice

Across Turkey, especially in urban centers like Istanbul, many property developers offer bespoke financing plans. These usually require an upfront deposit (typically 30-35%), followed by monthly payments, often with 0% interest, spread over several years. This is particularly favorable for investors, as it aligns with discounted off-plan property prices.

Take, for instance, the apartments in City Center of Istanbul or Beylikduzu: With just a 25% down payment, buyers can distribute the remaining amount over four years. These apartments also boast amenities like a pool, restaurants, terraces, and a fitness club.

Interested in such deals? Get in touch with Estates Istanbul! We’ll provide you with a curated portfolio of homes offering extended payment plans. Or browse our collection of properties from all around Istanbul