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Mortgages in Turkey

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Feb 8, 2023

Mortgages in Turkey

Many UK residents and people from all around the world have begun to take notice of how much value you can get for your money when buying Turkish property.

Turkish mortgages and mortgages from other countries can be extremely difficult to navigate if you don’t get expert advice first. but thankfully, we specialise in mortgage advice here at Loan Corp, so we’ll be able to guide you through the process and help you find the best lender for you and your situation.

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Can foreign buyers get a mortgage in Turkey?

Yes, foreign buyers are able to apply for and receive mortgages for properties in Turkey; however, there are some restrictions that only pertain to foreign buyers when it comes to applying for a mortgage.

Property restrictions for foreign buyers

Foreigners looking to buy property in Turkey are restricted from purchasing any property within security zones and forbidden military zones.

Thankfully, it is unlikely that many foreigners would want to live in these areas anyway, so it should not be too much of an issue.

Another restriction placed on foreigners buying property in Turkey is the fact that they are not allowed to buy more than 30 hectares of total property in Turkey.

Once again, while this is a restriction, it will likely not have too much of an effect on the majority of foreigners looking to purchase property in Turkey, as there are few people who can afford that much property or a property that large.


The tax year in Turkey begins and ends with the calendar year, making it slightly different from the UK.

While this may seem like it wouldn’t concern you, it will have an effect on when you need to pay your tax, as if you don’t pay on time, you may face a financial penalty.

Another important factor to keep in mind is the fact that Turkish Property Transfer taxes need to be paid by both the seller and buyer and are set at 2% of the value of the market price of the property.

While this will likely not be a huge issue for many foreign buyers, it is important to remember so that you won’t be shocked when faced with the bill.

If you plan on receiving rental income from your home in Turkey when you aren’t occupying it, then this income will need to be received and taxed in Turkey.

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Types of mortgages in Turkey

There are a few different types of mortgages in Turkey; however, Turkish mortgages aren’t the only financing option available to you.

Consulting with a mortgage broker to get advice on how you should go about financing your property is a good idea, and thankfully, it is one of the services we offer at Loan Corp.

Below we will discuss the different types of finance available for Turkish property.

Principal mortgage

A principal mortgage is the most common type of finance offered by Turkish banks. Principal mortgages are also used in the UK and the rest of the world, as they are the most popular type of mortgage.

A principal mortgage entails your loan payments being repaid by a fixed amount that is agreed upon by both the lender and the borrower.

Structured payment plans

Turkey was originally a cash real estate market that did not have much in the way of financing options, with Turkish banks only being able to offer mortgages to foreigners in 2007.

This caused many property developers to come up with an alternative solution in the form of structured payment plans. These plans generally only last for five years, which is much shorter than a normal mortgage contract.

This can be a great option for you if you are unable to get mortgage approval but can still afford to finance the purchase price of your chosen property over five years.

The developers that provide you with these payment plans also don’t charge any interest as Turkish banks do, so it is an option you should consider if your monthly income will allow it.

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What are the eligibility criteria for a mortgage in Turkey?

As with applying for any loan, if you are applying for a mortgage, you will need to meet certain eligibility criteria to be granted credit.

We have listed some of the criteria that you will need to meet below if you want to be eligible for a Turkish mortgage.


Mortgage brokers like the ones at Loan Corp will normally be able to tell you how much your bank account and assets will allow you to borrow against a mortgage in Turkey.

Having your mortgage application rejected multiple times can affect your credit score, so you should know what you can afford before applying.

Another important thing to note about Turkish mortgages is that you won’t be eligible for one if your monthly debt exceeds 35% of your net income. This debt also includes any mortgages you might have in the UK.

Credit score

As with any lender, your credit history will need to be checked before you can be granted a loan, as lenders need to determine whether or not they think you’ll be able to pay their loan back in full.

While a good credit score will give you a larger selection of Turkish lenders to choose from with better interest rates, having bad credit does not necessarily mean you won’t be able to get a Turkish mortgage.

However, it will limit the number of lenders willing to provide you with a mortgage, and you will likely also be offered much worse interest rates.


Most lenders in Turkey will provide you with a loan that will cover 75% of the market price of the property you want to buy.

This means that you will generally need to pay a deposit of at least 25% of the value of the property.

While this, once again, is unlikely to be a big issue for many people due to the low price of properties in Turkey, it is important to keep in mind as you will need to have this capital on hand if you want to get a mortgage for a property in Turkey.

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Benefits of Turkish mortgages

While Turkish mortgages can be difficult for foreigners to navigate, they do offer some benefits to foreigners wanting to purchase property in the country.

One of the benefits is that you won’t need to pay your monthly mortgage payments in Turkish Lira. Many lenders in the country will consider mortgages in GBP and some other foreign currency, which means that your payments will not fluctuate with the exchange rate.

Another benefit that the Turkish government offers to foreigners is a VAT exemption on their first property purchase in the country.

This VAT exemption only applies when a property is purchased in foreign currency and is not resold within 12 months after the initial purchase date.


How do I apply for a mortgage in Turkey?

When applying for a mortgage in any country, you will need to bring some documentation with you; some of these documents include:

  • Passport
  • Income tax documents
  • Proof of earnings

There is some other documentation you will require, depending on your residency status in Turkey and the lender you choose to go through.

Mortgage process

Below we will detail the process of applying for a mortgage in Turkey as a foreigner:

  1. You will first need to determine your budget and affordability. The best way to go about this is by contacting a mortgage broker and getting some advice.
  2. Choosing a lender is an important part of the process, and your mortgage broker should also be able to help you with this, as they will likely be able to find a lender that will provide you with the best deal.
  3. Apply for a Turkish tax number
  4. You will then need to verify the TAPU (ownership document) with the Land Registry and then apply with the Land Registry to sign the contract.
  5. Fill in the contract and sign it.
  6. Pay for the deposit.
  7. Complete your mortgage application with your chosen lender.
  8. Wait until the title deed is approved
  9. Once the title deed has been approved, you can then pay for your property and the tax that goes along with it.

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Can foreigners get mortgages in Turkey?

Yes, foreigners can easily apply for a mortgage in Turkey, provided that they meet all of the eligibility requirements.

Is it a good time to buy property in Turkey?

Property is currently very cheap to purchase in Turkey, and the real estate market is expected to grow at an annual rate of 8% in the next five years, so it is a great time to buy property in Turkey.

Can you get residency in Turkey if you buy property?

If you buy real estate in Turkey, you can get a residence permit, which can be renewed on a yearly basis, so you can technically become a resident.


Get Mortgage Advice From Loan Corp Today

If you are interested in applying for a Turkish mortgage, then you will benefit from some expert advice from us here at Loan Corp.

Our mortgage brokers will be able to find a lender that will be best for you and your situation with ease so contact us now free of charge.

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