Turkish property market prices are extremely cheap when compared to other well developed and saturated property markets in Europe or the USA.
Which means it is easy to finance your Turkish property. Most of our customers pay cash or bank transfer during the Turkish title deed transfer when they decide to go with a property purchase through Kingsman Estates.
However, this does not mean you should not be seeking different ways such as acquiring mortgages from Turkish Banks or banks in your own country in order to finance your Turkish property.
Most of our clients pay cash in full amount by just selling their home in their own country. A significant number of our clients are also buying Turkish property as a holiday home.
These customers tend to cash out some of their assets or look for a mortgage in their own country as well as for re-mortgaging their current home in their own country.
Accessing loans in your own country will always be easier when compared to getting a loan in Turkey as an ex-pat. However since 2007 foreigners can also have access to loans through Turkish banks so if you are looking to acquire finance through Turkish banks, it is possible, but please read the details below carefully.
Getting Mortgage from a Turkish Bank to Finance Your Turkish Property
Most of the Turkish banks have an English-speaking advisor in most branches, especially in the big cities. You may also call any bank on the phone and press 9 to speak to someone in English.
You will find most of the banks are willing to lend you up to %70 of the actual price of the Turkish property you are looking to purchase.
Be aware that banks will carry out their own valuation on the property and they always come up with a value of %15 below. Therefore you will not only be expected to cover %30 of the property but %45-%50.
Once they come up with the valuation report Turkish banks will then go ahead to make a personal financial performance test to make sure the amount of the mortgage you are getting is not over your ability to pay.
Your monthly payments should not be more than %45 of your monthly income. Please be aware that your potential rental income from the property will never be taken in to account when making this risk assessment.
When you start looking into the offers that Turkish banks give out, it will become apparent that interest rates very high. Interests rates are currently at %11 in Turkey and it is likely to go up to %16 in the upcoming years. So we always recommend our customers to look for loans in their own country as they will be subject to less bureaucracy with better offers.
What criteria do lenders consider?
Lenders will consider the following criteria when considering your mortgage application:
- Your current income
- Type of income, i.e. full time, part-time, contract
- Number of dependents
- Type of loan requested
- General living expenses
- Current savings and other assets
- Financial commitments, including credit card debt and limits.
Obtaining Finance through a Property Developer
Throughout the years, the Turkish property market has been cash dominated market.
Turkish are not used to get mortgages when buying property. That is why some construction companies have their own payment systems where you can put %30 of the payment first and start paying monthly to fully purchase the property.
These payment systems can go up to 5 years and sometimes with 0 interest rate. This option tends to be profitable as you will be purchasing the property as it is being built and will earn a great profit when you are exiting the market.
If you are interested in buying a property in Antalya, please contact us directly and our dedicated team at Kingsman Estates Antalya Investor Centre will be more than willing to help you with all your needs.
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