Turkey is home to some of the best properties that you can buy without breaking the bank. If you fancy real estate assets that come in a sun-kissed environment with beautiful beaches, then Turkey is your best bet.
Turkey is home to Istanbul, which is dubbed the “Dubai of Europe.” In Turkey, you can find all the types of properties that you will ever dream of. While the properties are offered for cheap, many buyers will still need some financing to make their investments.
In Turkey, if you are looking to finance your property acquisition, you can easily do this through a mortgage. Using a mortgage means that you can approach one of the Turkish banks in the country. As a foreigner, you can easily get a mortgage to purchase any type of property in the country.
However, you have to know that a majority of the banks in Turkey will offer a mortgage that covers about 70% of the total purchase price. This mortgage will usually last for 15 years or more. Foreigners can get their loans in foreign currency. There are several lenders, such as HSBC, Garanti BBVA, Denizbank, and Akbank.
You can get your Turkish mortgage without residing in the country. A Turkish notary can help you do this with sufficient and professional representation.
Loans from your native country
Many foreigners who come to invest in the real estate sector also use home loans to service their investments. You can get a loan from your home country and purchase properties in Turkey. This is usually better if the loans from your country of origin come with low-interest rates.
Many foreign countries usually have finical instruments that help their citizens invest and maintain their business interests in foreign countries. This option is a valid way of financing your property acquisition in Turkey.
Financing through property developers
One other great way to finance your properties in Turkey is the use of property developers. Many Turkish property developers have financial packages that are developed for their customers. You can try large-scale real estate developers that usually help out their customers to access various payment plans that they have on offer.
This means that you can buy a property with a down payment and pay the balance in installments. Many property developers understand the importance of a house to its buyers.
This is why they usually help them out with this effective financial instrument. It is possible to make a 30-35% down payment and be able to get a mortgage facility from your property developer. However, this mortgage has a validity of 5 years.
Financing property purchase in Turkey: Key hacks to remember
With the Turkish Lira, you can expect to get interest rates that range from 11% to 15% per year.
Interest rates on foreign currency range from 5% to 7%.
Foreigners and non-permanent residents in Turkey can get a mortgage without being physically present in the country.
There are special documents that you will need to get a mortgage in Turkey such as TAPU, notarized copies of passports, tax numbers, utility bills, bank statements, financial history, and so on.
