Mortgage for Foreigners in Turkey

Why Do You Need to Buy a House in 2022?

With the Reciprocity Law prepared in 2012, the conditions for foreigners to buy housing from the country were improved. Thanks to the law, the limits for foreigners to buy housing from the country have expanded and sales have increased significantly. Also, with the help of the government's policies to support foreign investments in recent years, foreigners can easily take out loans from the banks in the country. Foreigners have two options. They can apply to the bank in person or they can give the power of attorney to a person based in Turkey, which will include the authority to use the loan and to sign loan agreements.

Foreigners applying for a mortgage must prepare the documents to be given to the bank in the official language of their country of citizenship. On the other hand, documents to be issued abroad must be approved by the relevant authorities of the country in which the regulation is made, and bear apostille annotation. Before the application, these documents must be translated into Turkish by the sworn translators in Turkey. The translated documents must be notarized.

Citizens of countries that do not have apostille application should prepare their application documents in the official language of their country. These documents must be approved first by the Ministry of Foreign Affairs of Turkey and then by the Turkish Consulate.

Foreigners must obtain permission from the relevant authorities before the sale at the land registry office within the framework of the principles of real estate acquisition specified in the national legislation.

Necessary Documents

·       Identity card or driver's license,

·       Income certificate, salary letter or payroll,

·       Foreigner Identity Number (YKN) or Tax Identification Number (VKN) document,

·       Mortgage request and application form,

·       Address document,

·       Signature sample,

·       Information about the profession,

·       Business contact information

Foreigners who want to own a house in Turkey need to meet with the mortgage experts of the banks and get answers to the questions in their minds. After meeting the necessary conditions, with the approval of the mortgage, they can become a homeowner in Turkey or benefit from the property as an investment.

Loan Application Conditions

First of all, foreigners who are citizens of a foreign country and reside within the borders of Turkey must prove the residence and work permits they have obtained from Turkey to receive a loan. Banks require foreigners to have a residence or work permit of at least 12/24 months.

For foreigners to apply for a loan, a residence permit or a work permit is not sufficient by itself, and a guarantor is required. Banks demand that a Turkish citizen be shown as a surety in case foreigners leave the country not to return.

When applying for a loan to purchase real estate, the title deed, water, or electricity bills of the property in question must also be submitted to the bank. Banks determine the loans they give to foreigners according to the value of the relevant real estate.

Foreigners working in Turkey are required to submit their payrolls and documents showing their quarterly income to the bank; it is unlikely for unemployed foreigners to take out loans. However, to ease the situation for unemployed foreigners in Turkey, the banks may request foreigners to present documents showing transactions in bank accounts in their countries.

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