As of 2007 it is now possible for non-Turkish citizens to obtain a mortgage to fund the purchase of a Turkish property. This loan can be raised either in the UK (or country of residence) or through a Turkish bank.
Kaya Estate's UK Mortgage broker is Conti Financial Services Ltd; https://www.mortgagesoverseas.com/index.asp?page=Applicant1&Agent=kayaestate or visit their website; www.mortgagesoverseas.com .
In Turkey we recommend Deniz Bank mortgages; http://www.denizbank.com.tr/EN/Credits/Mortgage/
Turkish Mortgages now available: Turkey has a reciprocal agreement for the purchase of land and property with many countries. This means that the nations who allow Turks to buy land in their countries, can in return, buy land in Turkey. Foreigners may purchase in their own name if the property is outside a military zone. Based on these agreements foreigners of the following countries are eligible; United Kingdom, Russia, Germany, Australia, Austria, Belgium, France, Holland, Ireland, Spain, Italy, Canada, Luxemburg, Norway, Greece as well as some African and South American states.
No matter where the land or the house may be situated if the buyer is a foreign person, the deed office has to officially ask for prior approval or permission from the military in the area before transferring the title deeds (Military Check). The request for this permission can take between 30 and 60 days. The reason for this is to ensure that foreign buyers will not acquire a property within military zones. No land or property n forbidden regions or safety regions can be sold, transferred or rented.
Applying for a mortgage in Turkey is very similar to applying for a mortgage in the UK and will be subject to a Credit and Military check. Therefore you will be required with Kaya Estate’s assistance to supply the following information as listed below to the DenizBank Fethiye Branch Office.
Requested documentation for Turkish mortgage application
• Official tax statement of the most recent year in the home country (for example P60)
• Copy of the Tapu of the property or land that will be bought (only for existing land or
property).
• Copies of passports translated and signed by the branch or a notary 
• Income statement of employers signed by the employer
• Official document/declaration from notary that the person who signed the income
statement is allowed to sign
• Bank statements declaring the income (not older than 3 months)
• Annual report of the holding company for the last two years together with copy of
shareholder register
• Documents proving monthly financial obligations (rent, house loan installments,
alimentation)
• Overview of private assets proven by official statements
• Overview of private debts proven by official statements
Features of Turkish loan
Loan to value |
Maximum 65% of the appraisal value (not always equal to the sales price) |
Debt to income |
Maximum net salary to spend to installment for total loan position 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 |
Off plan mortgage |
Yes, with full bank guarantee from constructor for the total loan amount |
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) |
 Rates 1/02/08
|
|
MATURITY |
RATES |
EURO |
USD |
GBP |
YTL |
|
|
3 |
0,58% |
0,62% |
0,65% |
1,31% |
6 |
0,58% |
0,62% |
0,65% |
1,31% |
9 |
0,58% |
0,62% |
0,65% |
1,31% |
12 |
0,58% |
0,62% |
0,65% |
1,31% |
18 |
0,58% |
0,62% |
0,65% |
1,31% |
24 |
0,58% |
0,62% |
0,65% |
1,31% |
36 |
0,58% |
0,62% |
0,65% |
1,31% |
48 |
0,58% |
0,62% |
0,65% |
1,31% |
60 |
0,58% |
0,62% |
0,65% |
1,31% |
72 |
0,58% |
0,62% |
0,65% |
1,31% |
84 |
0,58% |
0,62% |
0,65% |
1,31% |
96 |
0,58% |
0,62% |
0,65% |
1,31% |
108 |
0,58% |
0,62% |
0,65% |
1,31% |
120 |
0,58% |
0,62% |
0,65% |
1,31% |
180 |
0,58% |
0,65% |
0,65% |
1,31% |
240 |
0,58% |
0,65% |
0,65% |
1,31% |
How to get a Mortgage from DenizBank?
- Please bring all the required information to the nearest branch of your new house. Together with the branch you will discuss all the conditions and benefits of the loan
- After your approval we will complete the application form and start the application procedure
- The bank will send a appraiser to you house to value your property
- Maximum 5 working days later the branch will inform you about the offering that we can do to you
- You will be handed out the pre term sheet that you can use as our written promise to you
- After presenting the pre term sheet to you, you are asked to sign the pre term sheet and pay the commitment fee
- After signing a period of maximum four months starts to arrange:
- DASK: (nature disaster insurance)
- House insurance; İskan Ruhsati (house permission)
- Approval of the ministry of Defense (Savunma Bakanliği)
- Tax number and opening a demand deposit account
- After collection of all the documents mentioned above the bank will give its final approval 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 at upfront agreed conditions. Go to you nearest branch to ask for our current joint promotion
If you have any questions or would like any further information on mortgages please contact us at info@kayaestate.com
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