From year to year, Turkey strengthens its position as an investment-attractive country rich in resort places. The government and banks of Turkey are trying to simplify the procedure for buying housing and make the conditions for obtaining housing loans even more favorable for foreigners.
The procedure for obtaining a mortgage loan in Turkey is regulated by the “Law on Mortgage Lending to Foreign Citizens” dated March 6, 2007.
In order to stimulate sales, the 3 largest banks in Turkey: Ziraat Bank, Halkbank and Vakıf Bank lowered the mortgage rate to 0.99% per month. The loan repayment period was increased from 10 to 15 years (180 months). The maximum loan amount is determined by each bank individually.
Mortgage loans to foreign citizens are issued by Turkish banks to persons aged 21 to 65 years in foreign currency (euros, dollars, etc.) or in Turkish lira. If the borrower is not a citizen of Turkey or the European Union, then the bank will issue a mortgage in the amount of 50% of the appraised value of an apartment or villa in Turkey, if he is a Turkish citizen, then the loan can reach 80% of the cost of housing. The assessment is carried out by independent experts, the interest rate (as of December 2019) is 5 – 6% per annum. Appraisers evaluate the object within 1-2 days from the date of acceptance of your application by the bank.
Finance Minister Berat Albayrak gave a positive outlook for 2020 regarding the reduction of bank rates to 0.78 on mortgage loans.
In 2019, the number of real estate transactions for foreigners broke a record and amounted to 316,052 units. Iraqis ranked first in real estate purchases, purchasing 105,046 housing units.
Total home sales are expected to exceed $1.2 million in 2020. Units. This growth is due to consumer confidence and increased business activity in general due to the positive trend on the part of the Government to reduce state duties and VAT.