Record decline in mortgage lending rates in Turkish banks: assistance to the real estate sector in the context of the coronavirus pandemic

In connection with the consequences of the coronavirus pandemic, the state authorities of the Republic of Turkey have developed several important projects aimed at providing all possible assistance to the population. All measures taken are aimed exclusively at maintaining and developing economically important areas of the state.

Record decline in mortgage lending rates in Turkish banks: assistance to the real estate sector in the context of the coronavirus pandemic

Content:

1. Loan with a low interest rate in Turkish banks
2. Features of obtaining mortgage lending in a Turkish bank

Record decline in mortgage lending rates in Turkish banks

Fig.1 Record decline in mortgage lending rates in Turkish banks

In connection with the consequences of the coronavirus pandemic, the state authorities of the Republic of Turkey have developed several important projects aimed at providing all possible assistance to the population. All measures taken are aimed exclusively at maintaining and developing economically important areas of the state.

To date, banking institutions of the Republic offer loyal cooperation in obtaining loans in Turkey. Several mortgage programs have been developed, differing in affordable conditions. Of all the state-owned banks in Turkey, the lowest interest rates on a housing loan offer:

• Vakifbank;
• Ziraat Bank;
• Halkbank.

When potential applicants apply, each client is offered competent advice and an offer of the best options for buying an apartment in Turkey. The main advantage of the proposed banking products is the possibility of using a 12-month deferral for payments with a low interest rate of 6.5%.

Loan with a low interest rate in Turkish banks

Having received a preliminary consultation in financial institutions, you can stop at a certain bank, where you then apply with the collected package of documents. Using a mortgage loan, you can buy your favorite property in Turkey.

Loans for the purchase of housing are issued in the context of the COVID-19 pandemic, with a quick check of the package of documentation provided and the announcement of the decision. Important information about lending in the Republic of Turkey:

• Local residents and foreign citizens can apply for a loan.
• Possibility of early repayment without accrual of additional interest.
• Registration of a real estate insurance policy against earthquakes (DASK).
• If necessary, it is possible to extend the term of contractual obligations.

Features of obtaining mortgage lending in a Turkish bank

First of all, the financial institution will ask for an independent expert opinion on the objective value of the property. It is worth noting that appraisal activities are mandatory and are carried out regardless of whether real estate is bought for cash or under a mortgage lending program.

Banks also request documentation that confirms the financial situation of the client:

• identity documents;
• an extract from the bank where the current account is opened, containing information about the monetary transactions performed;
• for entrepreneurs – a tax return for the past 2 years, individuals submit a 2NDFL certificate issued by the employer.

After submitting the full package of documentation, the bank considers the accepted application. The review process takes 5-7 days. In case of a positive decision, a ready-made package of documents prepared by representatives of the banking institution is signed.

If you are a foreign citizen and want to take advantage of affordable mortgage lending products in the context of the coronavirus pandemic, you must have a residence permit in hand. Our company will help you collect a full package of necessary documents and accompany you until you receive a mortgage loan.