Author: Luxury Estate Turkey
Viewed 19 times
15 October 2025
Buying real estate in Turkey with the help of a mortgage loan is a realistic and increasingly common option among foreign buyers. Turkish law has officially allowed non-residents to obtain mortgage financing since 2007, giving foreigners the ability to purchase property under the same secured-lending principles as Turkish citizens. Mortgage programs are especially popular in coastal regions such as Alanya, Antalya, and Istanbul.
However, mortgages for foreign citizens come with their own specific terms and requirements. In this article, we explain how to buy property in Turkey with a mortgage, what conditions Turkish banks offer, what steps you’ll need to take, and how the licensed agency Luxury Estate Turkey supports clients throughout the entire process.
Yes, they can. Turkish law allows foreign citizens to apply for mortgage loans as long as their home country maintains friendly relations with Turkey and is not under international sanctions. For example, citizens of Russia, Ukraine, Kazakhstan, EU member states, and many others can freely access mortgage programs. By contrast, applicants from sanctioned countries such as Iran or Syria are generally rejected because of international banking restrictions.
In 2022 and 2023, Turkish banks temporarily suspended mortgage lending to foreigners due to economic uncertainty. But since 2024, lending to non-residents has resumed, allowing international buyers to purchase property in Turkey on both the primary and secondary markets.
A common misconception is that you must already have a Turkish residence permit to qualify for a mortgage. In reality, banks issue loans even to non-residents without an ikamet. Having a residence permit can simplify address verification and increase the bank’s level of trust, but it is not a formal requirement.
A Turkish mortgage is a secured loan in which the purchased property serves as collateral. The property is registered in your name immediately, but the title deed (Tapu) includes a note indicating a mortgage lien, known in Turkish as ipotek. This means the property cannot be sold until the loan is fully repaid or the bank provides written consent.
You remain the legal owner of the property and can live in it, renovate it, or even rent it out, provided the bank does not object.
After the mortgage is fully paid off, the lien is automatically removed. If you decide to sell the property before repayment, there are two ways to proceed:
The new buyer can take over your remaining mortgage balance, with the loan re-registered in the Land Registry Office.
You can repay the full outstanding amount yourself and obtain a clearance document from the bank to lift the lien from the Tapu.
In either case, full repayment to the bank is mandatory before the property becomes free of encumbrance.
This system protects the lender, as the bank has the right to repossess and sell the property through the courts if payments stop. For borrowers, this arrangement is convenient because it doesn’t require guarantors or additional collateral—the property itself secures the loan.
Before applying for a mortgage in Turkey, it’s important to understand the basic terms most banks use and what they require from borrowers. Specific conditions vary by institution and individual profile, but several key principles apply across the board.
Turkish banks offer mortgage loans in both the national currency (Turkish lira, TRY) and in major foreign currencies such as US dollars, euros, or British pounds. For foreign citizens, however, the available options depend on each bank’s internal policy.
As of 2025, most Turkish banks prefer to lend to foreigners in Turkish lira. Foreign-currency mortgages—usually in USD or EUR—are available only through certain institutions, such as Kuveyt Türk Bank, and only if the borrower’s income is tied to the same currency. Large banks like YapıKredi and Garanti BBVA occasionally approve such loans, but they review them individually, so most foreign buyers should plan for a mortgage in lira or work with a bank specializing in foreign-currency lending.
The standard repayment period for mortgages in Turkey is up to 10 years (120 months). Some banks may extend this to 15 or even 20 years. For foreign-currency loans, terms are typically shorter—usually five to ten years—to limit currency risk.
When deciding between a lira or foreign-currency loan, borrowers should carefully consider exchange-rate fluctuations. A loan in Turkish lira usually has a higher interest rate, but if the lira weakens against your home currency, your payments effectively become cheaper in real terms. A foreign-currency loan typically carries a lower rate, but if your income is in another currency (for example, rubles), sudden exchange-rate shifts could make your payments more expensive.
All Turkish mortgage loans use fixed interest rates that remain unchanged for the entire repayment period. This protects borrowers from market rate increases, though exchange-rate volatility can still affect the overall repayment amount.
Foreign borrowers must provide a relatively large down payment. Most Turkish banks finance no more than 40–50% of the appraised value of the property, meaning you’ll need to contribute 50–60% of the total price yourself.
This requirement minimizes the bank’s risk and protects against market fluctuations. For the buyer, it means you should be financially prepared with significant savings or liquid assets.
Developers, on the other hand, often offer a simpler alternative—installment payment plans without a bank intermediary. In this case, the down payment is typically 30–50%, and the remaining balance can be paid over one to three years. These payment plans are usually available only during the construction stage.
Interest rates depend primarily on the loan currency and repayment period. On average, mortgage rates for foreigners in Turkey range between 6% and 15% per year, with foreign-currency loans being the most affordable.
As of 2024–2025, euro- and dollar-denominated loans are issued at around 5–9% annually, while mortgages in Turkish lira cost around 15–20% per year or higher due to inflation and high key rates.
Banks calculate payments so that the monthly installment does not exceed 40% of the borrower’s verified income, ensuring a reasonable debt burden and payment reliability.
In addition to interest, borrowers must cover several one-time and recurring expenses:
Bank commission: a one-time fee of 0.5–1.5% of the loan amount.
Property appraisal: conducted by a certified expert, usually costing €150–200, paid by the borrower regardless of the outcome.
Insurance: includes:
DASK (mandatory earthquake insurance);
property insurance against fire, flooding, and other damages;
life insurance for the borrower, if required by the bank.
Combined annual insurance costs can reach €700–750.
Translation and notary services: notarized translations and documents typically cost $50–100 per document.
Land Registry and title taxes: a registration fee of about 0.1% of the loan amount and a 4% title transfer tax based on the cadastral value, which applies to all property purchases, with or without a mortgage.
Altogether, the additional expenses for a foreign buyer arranging a mortgage usually range from €1,000 to €2,500, depending on the bank, property value, and region.
Turkish banks allow early or partial repayment at any time, but they charge a small penalty fee—typically 2% of the outstanding balance. The same fee applies to partial payments made ahead of schedule.
Once the loan is fully repaid, the lien (ipotek) is removed from the title deed, and the property becomes completely free of encumbrances, allowing you to sell or transfer it without restrictions.
When evaluating a mortgage application, Turkish banks determine the Loan-to-Value (LTV) ratio—the percentage of the property’s appraised value that can be financed.
For foreign borrowers, the LTV rarely exceeds 50%. Importantly, this percentage is based on the appraised market value, not the sale price.
For example, if an apartment is listed at €120,000 but appraised at €100,000, the bank will lend only €50,000 (50%), leaving the buyer to cover €70,000 plus transaction costs.
Banks also set a minimum mortgage amount, usually around €10,000.
Turkish banks evaluate both the borrower and the property itself. Not every home qualifies for mortgage financing—restrictions depend on the construction stage, legal documentation, and property type.
Completed and nearly completed housing: mortgages are generally issued only for ready properties or those at least 70–90% complete. The building should already have an iskan (occupancy certificate) or be in the final phase of construction with the developer’s cooperation.
Primary and secondary markets: mortgages are available for both new and resale homes as long as the title documentation is clean and no encumbrances exist.
Property type: most loans cover residential units—apartments, penthouses, or villas. Mortgages for land or commercial properties are rare and subject to special approval.
Restrictions: properties near military zones or strategic areas may require additional clearance from the Ministry of Defense.
The most suitable properties for a mortgage are ready or nearly ready apartments in open districts for foreign buyers, with verified documents and strong resale potential.
If you’re buying an off-plan property, you can initially use a developer’s payment plan and later refinance the balance through a bank once construction is complete.
Kuveyt Türk Bank is one of the few banks in Turkey that actively works with foreign buyers and provides mortgage loans in both Turkish lira and foreign currencies. The bank is especially active in regions such as Alanya, Antalya, and Istanbul, and it remains one of the rare institutions that still offers mortgages to non-residents in USD or EUR.
The Kuveyt Türk mortgage program is known for its stable terms, transparent review process, and flexible approach toward foreign borrowers.
Kuveyt Türk accepts applications from citizens of most European, CIS, and Gulf countries. Foreigners from nations with friendly relations with Turkey can generally obtain approval if they meet the bank’s financial requirements.
Restrictions apply primarily to citizens of countries under international sanctions or with strained diplomatic relations with Turkey. In such cases, the bank may be unable to perform the necessary financial verifications or process cross-border transactions.
In practice, the most common difficulties occur for applicants from sanctioned jurisdictions such as Iran, where banking operations are heavily restricted.
Age: between 25 and 65 years old at the time of full repayment.
Financial stability: verifiable and consistent income that allows monthly payments to remain below 40% of total income.
Credit history: no defaults or overdue loans.
Residence permit: not required, but a valid Turkish residence permit (ikamet) increases the bank’s confidence.
Tax number and Turkish account: you must have a Turkish tax identification number (Vergi Numarası) and a local bank account.
If you do not already have an account with Kuveyt Türk, it can be opened during the mortgage application process as part of the standard procedure.
To apply for a mortgage, a foreign borrower must provide an expanded documentation package, including:
Passport with a notarized Turkish translation.
Proof of income: a recent salary certificate covering at least the past 3 months, or a tax return for entrepreneurs; additionally, recent bank statements for 3–6 months showing account activity.
Proof of residential address abroad: a utility bill, bank letter, or similar document showing your name and address, also translated and notarized.
Turkish tax number and mobile phone number for bank communication.
Copy of Tapu (for resale property) or preliminary sales contract (for new development).
All documents must be translated into Turkish and notarized. The bank reviews only complete applications. With properly prepared paperwork, preliminary approval usually takes about two weeks, after which the property appraisal and final approval follow.
The loan amount depends on the property’s appraised value and the borrower’s financial profile.
Kuveyt Türk offers loans in TRY, USD, or EUR.
For foreign-currency loans (USD/EUR), the repayment term is up to five years.
For lira loans, the term is up to ten years, with possible extensions in individual cases.
Interest rates are fixed for the entire term:
Foreign-currency loans: about 0.75% per month (≈ 9.4% annually).
Lira loans: about 1.5–2% per month (≈ 18–24% annually).
Repayments follow an annuity schedule of equal monthly payments for the entire loan period. Borrowers can sometimes negotiate improved terms, such as a lower rate in exchange for maintaining a deposit or providing additional financial guarantees.
Borrowers pay the standard costs associated with all Turkish mortgage transactions:
Bank commission: approximately 1% of the loan amount.
Property appraisal: paid by the borrower.
Insurance policies: mandatory earthquake insurance (DASK), property insurance, and, if required, life insurance.
Kuveyt Türk also requires borrowers to open a personal Turkish bank account with a small starting deposit—usually around €100—to facilitate automatic monthly payments.
Kuveyt Türk finances only legally clean, marketable, and fully verifiable properties that meet the bank’s internal risk standards.
Completion level: the property must be fully completed or at least 70% finished, with a valid Tapu or readiness for title registration. Apartments still under excavation or in early construction phases are not eligible.
Appraisal and liquidity: a licensed independent expert assesses the property’s market value and resale potential. If the valuation shows the property as low-liquidity—because of location, layout, or inflated price—the bank may reduce the loan amount or reject the application.
Property type: Kuveyt Türk primarily finances residential real estate such as apartments and villas. Mortgages for commercial premises or land plots exist only under special programs and are rarely available to foreigners.
Regional presence: the property must be located in a city or region served by a Kuveyt Türk branch, which includes all major Turkish coastal regions—you can purchase an apartment in Alanya with a loan.
Legal verification: before issuing a loan, the bank performs a full title check. The property must be free of any prior mortgages, liens, court bans, or restrictions on foreign ownership. The bank also verifies that the district is open to foreign buyers and that foreign-ownership quotas (25% per district) have not been exceeded.
Kuveyt Türk allows both partial and full early repayment. The fee is determined under Turkish consumer-credit law:
2% of the prepaid amount if more than one year remains until maturity.
1% if less than one year remains.
For example, if you repay the remaining balance halfway through the term, you’ll pay the remaining principal plus 2% as an early-payment penalty. The same calculation applies to partial prepayments.
After full repayment, the bank issues an official clearance letter (ipotek fek yazısı) confirming the mortgage has been settled. This document is used to remove the lien from the Tapu at the Land Registry Office.
Until the lien is removed, the property cannot be sold without the bank’s consent, though renting it out is allowed. If you plan to lease the property, it’s recommended to notify the bank and provide a copy of the rental contract if requested.
The process of obtaining a mortgage in Turkey as a foreign citizen takes, on average, one to two months from start to finish. It includes several clearly defined stages: collecting documents, property appraisal, loan approval, and title registration.
A foreign buyer typically needs the following:
Valid passport translated into Turkish and notarized.
Proof of income — for employees, this can be a recent salary certificate showing position and income for the past 3–6 months. Business owners provide a tax declaration for one to two years or an accountant’s report. It is also advisable to include bank statements for the past six months showing stable account activity.
Proof of address abroad — such as a utility bill, bank letter, or residence-page entry in a domestic passport confirming registration.
Turkish tax identification number (Vergi Numarası) — easily obtained at any tax office, free of charge, in about an hour.
Information on the selected property — a copy of the Tapu (for resale properties) or a preliminary sales agreement with the developer.
Additional documents upon request — for instance, a credit report from your home country, proof of property or vehicle ownership, or an employment reference. These are not mandatory, but can improve the chances of approval.
All documents must be translated into Turkish and notarized. It is recommended to have both the originals and at least two copies of each: one for the bank and one for your personal records.
After submitting your documents and initial application, the bank orders an independent valuation of the selected property. The appraisal report (ekspertiz raporu) is mandatory and determines both the property’s market value and the maximum loan amount available.
Appointment of the appraiser: the bank engages a licensed, independent expert accredited by the Banking Regulation and Supervision Agency (BDDK). The service is paid for by the borrower.
Site visit and analysis: the appraiser contacts your real-estate agent to arrange an inspection. During the visit, they take photos, measure the space, verify technical documentation, and request a land-registry extract (Tapu Sicil).
Report preparation: the appraiser conducts a comparative market analysis, examining similar recent sales in the same area. The final report includes photos, data, and an estimated market value — for example, €100,000. Based on this value and the LTV ratio (usually 50%), the bank calculates the loan limit.
Submission and validity: the completed report is sent directly to the bank (and to you, upon request). The process typically takes two to five business days, and the report remains valid for several months.
If the appraisal value turns out lower than expected, you can:
increase your down payment;
negotiate a price reduction with the seller; or
withdraw your application and choose another property.
Once the bank reviews your documents and the appraisal report, it issues a final decision. If the borrower’s profile meets the requirements, the bank prepares a detailed credit offer (loan proposal).
The offer includes:
the approved loan amount and currency;
term and interest rate;
monthly repayment schedule;
bank commissions;
insurance requirements;
and any additional conditions or guarantees.
You usually have up to three weeks to review and accept the offer. Once you sign it, all loan conditions are locked in — even if the bank later adjusts rates for new applicants.
In some cases, the bank can also issue a guarantee letter (pre-approval letter). This document confirms the bank’s willingness to finance your purchase and can serve as proof of solvency for the developer or seller.
By this stage, you should already have a preliminary sales agreement in place and a deposit paid. The remaining amount of your down payment — the difference between the property’s price and the approved mortgage — is usually paid at the final signing, right before title transfer.
After you accept the bank’s offer, the bank, seller, and your agent begin preparing for the closing. This stage includes:
verifying final legal documentation;
arranging property and life insurance policies;
scheduling an appointment with the Land Registry Office (Tapu Dairesi) for the official transfer of ownership and registration of the mortgage.
At this point, the mortgage has been approved, and the property is effectively reserved for you.
The closing process takes place at the Land Registry Office and usually takes just a few hours.
Participants include the buyer (or an authorized representative under a notarized power of attorney), the seller, and a bank representative — typically a loan officer or legal counsel.
The procedure is straightforward and handled in a single appointment:
The sale contract between buyer and seller is signed, and the Tapu is reissued in the buyer’s name.
The mortgage agreement between the buyer and the bank is signed.
A three-party agreement is executed, recording that the property is transferred to the buyer with a registered mortgage lien in favor of the bank.
The bank transfers the loan funds directly to the seller’s account (or via a cashier’s check), while the buyer pays the remaining down payment. In some cases, the funds are held in escrow until the Tapu registration is finalized.
After registration, the new Tapu includes an official note specifying the mortgage amount and bank name. From this moment, you are the legal owner of the property, and the bank becomes the mortgagee (lien holder).
After closing, each party receives its documentation:
The seller receives the sale proceeds.
You receive the keys, your copy of the mortgage agreement, and your new Tapu.
The bank receives proof of the registered mortgage lien.
The bank then issues your payment schedule and instructions for servicing the loan. You can immediately move into the property or begin preparing it for rental use — the transaction is officially complete.
Excellent — here is the final part of the complete translation in the same professional American English tone. It includes the post-purchase section, full details about payment management and lien removal, and the final block about Luxury Estate Turkey.
To manage monthly mortgage payments, you’ll need a personal account with the lending bank. Usually, this account is opened during the mortgage process. Once your Tapu is registered and the loan becomes active, the bank connects it to your account and provides you with a fixed payment schedule.
Monthly payments are typically debited automatically. It’s best to set up auto-payment and ensure the necessary amount is always available before the due date. This helps you avoid delays, penalties, and any negative effect on your credit history.
If you do not live in Turkey permanently, you can easily fund your Turkish bank account from abroad through an international wire transfer. Most Turkish banks offer English-language online banking and mobile apps, allowing you to monitor payments and transfer money remotely.
Payments must be made in the same currency as the mortgage (TRY, USD, or EUR). The bank automatically applies the current exchange rate if you deposit funds in a different currency.
If you decide to repay your mortgage ahead of schedule—either fully or partially—you can request an updated calculation from the bank. The remaining balance, including any early payment fee, will be provided in writing.
After the prepayment, you can choose whether to:
shorten the total loan term while keeping your monthly payments unchanged, or
reduce the monthly payment while maintaining the original term.
This flexibility allows borrowers to adjust their mortgage plan according to income or investment goals.
Once the mortgage has been fully paid off, the bank issues an official clearance letter (ipotek fek yazısı), confirming that all obligations have been met.
With this document, you—or your legal representative—must visit the Land Registry Office (Tapu Dairesi) to officially remove the lien entry from the title deed. After the update, the Tapu no longer carries any encumbrances, and the property becomes completely free for sale, gifting, or transfer to family members.
This procedure usually takes one business day and officially completes the mortgage cycle.
The licensed real estate agency Luxury Estate Turkey provides full, step-by-step assistance to clients purchasing property with a mortgage in Turkey. Our team ensures that every stage—from the first consultation to the registration of your Tapu—is smooth, transparent, and fully compliant with Turkish law.
We start by helping you select the optimal mortgage structure and terms, analyzing current bank requirements and interest rates. We also explain how a mortgage might influence your eligibility for a residence permit or citizenship by investment, and we advise on alternative financing options such as developer installment plans or leasing programs.
Our specialists handle all documentation and communication with the bank: we prepare and submit your application, track its review progress, negotiate conditions, and resolve any administrative questions. Once approved, we coordinate directly with the Land Registry Office to ensure your title deed is issued properly.
When you work with Luxury Estate Turkey, you invest with professionals. We protect your interests, save you valuable time, and help you secure the most favorable financing conditions for your property purchase in Turkey.
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