Legislation for Off plan mortgages in Turkey
the new legislation allows foreigners to obtain amortgage to buy off-plan property, which is excellent news for investors and those ho don’t have 30-40% in cash to put down. Deniz Bank is the first Turkish bank offering this type of mortgage, but it is likely that most of the major banks will follow on.
Mortgages for off plan property in Turkey currently apply to nearly all countries. Before a Mortgage can be applied for by the client, the developer has to be pre-approved by the the lending bank in Turkey. This process is done by a Mortgage Broker acting on behalf of the Turkish Bank.
Basic Lending Terms for ALL mortgage products as follows:Loan to Value: up to 65% (of valuation)
Any country that has a reciprocal agreement with Turkey (eg: Australia, New Zealand, EU & US)
Term: 5 to 10 years
Minimum Loan: €30,000
Maximum Loan:No Maximum
Age of applicant:25 to 70 years of age
Maximum age at loan maturity: 70 years of age
Early Repayment penalty: 2%
Advantages of ALL mortgage products:
Self employed & retirees accepted No geographical restrictions within mainland Turkey Full rental income is taken into account when banks assesses affordability for client A completed property is defined as 75% built No requirement to become a Turkish residentLoan offer lasts for 4 months. Can be extended to 18months (an extra 1% commission will be required to process this request) No life insurance requiredLoan interest rate fixed during full duration of loan.