Mortgage in Turkey

Prior to 2007, most houses in Turkey were financed via leases. Legislation passed in 2007 led to the introduction of mortgages, similar to those available in much of Europe and the United States. Mortgage repayment periods typically range from 5 to 20 years and many providers stipulate that the mortgage holder must repay their mortgage before they reach a certain age. Applications for a mortgage must be supported by clear evidence of the ability to keep up with repayments.

In Turkey, there are other fees which need to be paid, in addition to the purchase price of a property. These include fees associated with registration (lawyer, notary, interpreter and permits), which are usually about one percent of the purchase price.

The following fees are shared between the buyer and the seller:

• Stamp duty, which is charged at 0.75 percent of the purchase price
• A three percent title deed charge, which is paid to the Land Registry when the TAPU is received
• A commission of about six percent for the estate agent

Property tax is a municipal tax on both land and property. The rate depends on the property's classification. In the year that the property is sold, it should be paid by the seller, with the buyer taking responsibility the following year. The buyer should inform the local authority of the price paid for the property.

Earthquake insurance is compulsory when buying a property.

3. The bank will send the appraiser to assess your future home;

4. Within 5 working days the bank will inform you of their decision;

5. You will receive the guarantee bank letter to collect the necessary documents;

6. After receiving the guarantee you have to pay the bank’s services for issuing the credit;

7. Within four months you have to submit the following documents:

• DASK: (real estate insurance from natural disasters)
• Iskan Ruhsati: (the certificate on house input in operation)
• Permission from the Ministry of Defence of Turkey on acquisition of real estate by you
• National insurance number received in local internal revenue service
• The additional documents provided by the borrower
• Open bank account

After collecting all documents, you obtain the credit and you can purchase real estate.

Author: RestProperty

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The following information may also be of interest:

Apartments in Turkey

Mortgage in Turkey

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