Who is eligible to buy real estate in Turkey?

Foreign citizens or residents on the conditions of reciprocity with and paying obeisance to legal restrictions (the law on property purchase by foreigners in Turkey) are able to buy real estate in Turkey. They can buy property and land within a zoned municipal area, which means all cities, towns, the coastal resorts and large areas around them.

What is the best way for property search in Turkey?

The best way is to make some research via internet before your arrival. And try first to identify the location you are interested in. Although internet supplies various information on almost every subject, some of these information might be biased.

For such an important decision you definitely need to experience certain things yourself. There are many Property Inspection Trips you may attend with very low cost via reputable property agents. Your selection of the company should be based on their reputation as well as the wide portfolio they can offer in the area you are interested.

How are properties priced in Turkey?

Property values have been progressively increasing. As it is the case all around the globe, the property value defers based on the location and the quality of the construction material, as well as its architectural characteristics. Transportation, economic activities in the region, and availability of necessary services are also factors that determine the value.

Why finding a solicitor is important?

There is no obligation to appoint a Solicitor. However, since there are many transactions for buying a property and some stages are very critical, a cautious consumer will seek advice from a Solicitor who has experience on Turkish property law and who can give legal advice about all issues including a power of attorney. Besides it will save you time and money to travel back and forth to follow up the procedures.

How can I open an account at Garanti Bank?

You can open an account at Garanti Bank in your own name. All you need to do is get a tax number, and then submit it with a copy of your passport to a Garanti branch. If you issued a POA your Solicitor can obtain the tax number and open a bank account on your behalf.

How can I apply for a mortgage at Garanti Bank?

After deciding on a property, you have to fill out a Mortgage Application Form at a Garanti branch, preferably a branch close to your designated property. Garanti Customer Relationship Managers will provide you the payment options, current interest rates and the best payment plans that suit your needs. Garanti Bank will notify you with your application result after pre-evaluation.

How is the property value determined for a mortgage application?

After your application is received by Garanti, then the appraisal of the property will be arranged by the bank. Once the value of the property is set, the final loan evaluation and the loan amount will be decided accordingly. At the same time with mortgage application you must deposit the amount into your Garanti Bank account for the appraisal report and loan evaluation fees.

What are the transactions to be completed for a mortgage application?

After pre-qualifying for a mortgage, the Customer Relationship Manager at branch will request the signing of the English version of the Home Financing Pre-Agreement Information Form, as well as the Home Financing (Mortgage) Agreement and the Payment Plan printed in Turkish. As a beneficiary to the loan, consumers are to get a life insurance set up on behalf of their name, as well as a house insurance and DASK (National Disaster Insurance Authority) insurance for the property to be purchased.

In which currencies do you provide mortgages?

It is possible to have the mortgage in Turkish Lira for all foreign citizens but in Euro, British Sterling and US Dollar just for non residents.

Do you provide adjustable rate mortgages in different currencies?

Adjustable rate mortgages are available in Turkish Lira denominated mortgages only, as a result of the Mortgage Legislation in Turkey.

Do you provide fixed rate mortgages in different currencies?

Fixed rate mortgages are available in Turkish Lira, Euro, British Sterling and US Dollar.

What is the maximum loan-to-value (“LTV”) ratio at Garanti Bank?

Maximum loan-to-value ratio for EU member countries, Norway and Switzerland citizens is 65% of the appraised value of the property For other countries, the maximum loan-to-value provided by Garanti is 50%.

What is the minimum loan amount limit for a mortgage?

There is no minimum requirement.

What is the maximum loan amount limit for a mortgage?

The maximum loan is amount is TL 500,000 or its equivalent in other available currencies.

What are the minimum and maximum loan terms for mortgages?

There is a 3-month minimum term and a 240-month (20 years) maximum term for a mortgage loan.

Are there a minimum and a maximum age allowed to apply for a mortgage loan?

Consumers between the ages of 18 and 65 can apply for a mortgage.

Which nationalities may apply to have a mortgage?

All countries’ citizens can apply for a mortgage loan in Turkey via Garanti Bank.

Is there a maximum debt-to-income ratio to apply?

Yes, there is a maximum debt-to-income ratio of 40%.

Is there an early payment fee for full or partial repayments?

Yes. An early payment fee will be applied to all early payments / terminations for fixed rate mortgages. However, for adjustable rate products, there is no redemption or partial repayment fee.

Can such properties be rented to third parties?

Yes, but rent income cannot be taken into account for credit evaluation process.

How is the mortgage repaid? Do customers need a bank account with lender?

For repayments, customers are required to have a bank account at Garanti Bank.