You can buy a property without having the full amount of money in your hands in two ways: deferred payment or with a mortgage loan.

 

          DEFERRED PAYMENT

Purchase with deferred payment is a long-term plan for payment – for a year, a year and a half, two or more years. Deferment from the developer is a popular type of lending of foreign citizens in Turkey. Almost all developers offer interest-free deferment (or at the minimum rate) until construction is completed. At the same time, deferment are usually tied to the completion of certain stages of construction, which additionally motivates the developer to deliver the objects on time, and gives the investor control, clearly stated in the contract. Some developers even offer deferment for up to 5 years after completion of construction at a low interest rate, usually comparable to the bank.

          What are the advantages of deferred payment?

  • Easy registration – in order to register such a purchase, it is enough to have passports of the buyers and the initial payment.
  • Lack of additional expenditures for the registration, for the translation of documents, also, it is not necessary to prove you are capable of payment.
  • Lack of the opportunity to get a refusal for deferred payment.
  • Convenient negotiable payments – these are not obligatory monthly payments, you can make a payment once a month or once in 3 – 6 months.
  • Sometimes, deferment can be provided on conditions of a small rate, but in any case, the rate will be smaller than if you register a mortgage.

          What are the conditions for receiving a deferment of payment?

  • A buyer must make an initial payment, the amount of which is agreed with the developer and specified in the contract.
  • For the remaining amount, from the required, the developer provides deferment from 1 year to 5 years.
  • As a rule, the deferment for 1 year is interest-free.
  • In case of a deferment for a period of 2 and more years, the rate of the loan is negotiated with the developer and fixed in the contract of sale.
  • When paying with a deferment, the buyer becomes the full owner of the property only after the full payment of the entire amount for the real property.

          STEP IN cooperates only with reliable and verified builders that have completed and commissioned many high-quality properties.

 

          MORTGAGE

A mortgage loan is a loan secured by property. The collateral may be property, for the acquisition of which the loan is taken, and previously acquired property.

          What are the advantages of a mortgage loan?

The most important thing is that, taking a loan, you arrange the property for ownership and get TAPU, on the basis of which you can get a long-term residence permit. You can use your home without any restrictions, gradually paying the rest of the amount to the bank. Mortgage loan can be issued for a period of 15 years.

To obtain a mortgage loan in Turkey, you can contact the following banks: DenizBank, Garanti Bank, Fortis Bank, HBSC Bank and many others. Loan currency are euros, dollars, Turkish lira, pounds sterling or Russian rubles. Conditions for obtaining and servicing a mortgage loan may vary depending on the chosen bank.

          General terms and conditions for the obtaining of a mortgage loan for individuals with foreign citizenship in Turkey

Approval time of a loan application 5 – 7 working days
Bank’s offer validity period 2– 4 months (there is the possibility of extension to 18 months, with an additional fee of 1%)
Maximum loan percentage Up to 50 – 60 % of the appraised value of the property
Financed property type Existing housing
Monthly payments Maximum 50% of the gross monthly income of the Borrower
Minimum / Maximum loan amount From 30 000 TL (≈ $ 5,000)
Payback period From 12 to 180 months (15 years)
Loan currency Euro, U.S. dollar, British pound, Turkish lira
Interest rate type Fixed rate
Early repayment opportunity With 2% penalty
Insurance Mandatory DASK – against earthquakes, total property insurance, Borrower’s life insurance.
Expert examination / Appraisal To be performed by a special expert company of the bank. Payable by the Borrower. Average cost is about 150 euros.
Borrower’s age 25 – 70 years old (thus, a Borrower who is 60 years old can receive a loan only for 10 years, and a Borrower who is 65 years old –  only for 5 years!)

          Notes! Obtaining a loan is possible only for foreign citizens-individuals! Getting a loan in the name of a company for foreign nationals who established this company in Turkey, or foreign citizens who have a company in another country of the world under these conditions is not possible!

          Notes! When you are processing a loan for purchasing a commercial property – a shop, a shopping center, industrial facilities, etc., there appears an additional KKDF tax with a floating rate, which is calculated individually depending on the amount of the loan and its terms.

          Loan obtaining procedure

  1. Documents required to obtain a mortgage loan
  • The tax return for the last year, issued in the Borrower’s country (Form NDFL-2).
  • The photocopy of TAPU and Technical Passport of the property being bought.
  • A certified by the bank or notarized photocopy of the foreign passport.
  • Information letter on salary issued by the director/employer (for employed persons).
  • A notarized signature of the director/employer (for employed persons).
  • Statements on the Borrower’s bank accounts cash flow (for the last 6 months).
  • Data on the activities of the company for the last 2 years, provided in conjunction with a list of the co-owners of the company (for business owners).
  • A document showing the Borrower’s monthly expenses (payment of apartment rent, payments on loans, expenses for food, etc.).
  • Documents confirming the Borrower’s title to property (real estate, vehicles, stocks, bonds).
  • A document evidencing that the Borrower has no loan or other debts to a bank or any other structure.
  • A signed by the Borrower application for the mortgage loan.
  • Tax number received in Turkey.
  • Turkish residence permit.
  1. Expert decision of the bank

The bank invites an expert appraiser of property, analyzes the documents and issues a preliminary approval of the loan, which records: the loan amount, its term, interest rate and other conditions. Submission of documents to the bank, their verification, calling an expert and issuing a decision on a loan takes from 5 to 7 working days. At this stage, the recipient of the loan must pay the services of an expert company in the amount of approximately 150 euros. After approval of a loan application, the standard offer term for a bank is 2 – 4 months, depending on the bank.

  1. Mortgage transaction

The next step is the procedure for registration of the Property Certificate (TAPU) for the property Buyer. At the time of TAPU transfer to the new Owner, the bank imposes the mortgage encumbrance on it. To make possible TAPU transfer to the Borrower and, respectively, loan obtaining, all the permits from the Office of Cadastre and the Military Department must be obtained. Once the Buyer has received the certificate of title, the loan will be paid to the real estate owner by the bank by a direct transfer into his/her account. At the time when the loan is paid the Borrower must pay the additional expenses of the bank at the rate of 2% of the loan amount and the cost of the various types of insurance.

          If you have decided to buy property in Turkey with a mortgage loan, STEP IN is ready to provide you with professional assistance and support at all stages of obtaining a loan.