What are the mortgage repayment terms?

What are the mortgage repayment terms in Turkey: an overview for foreign buyers

Buying property in Turkey is an attractive investment, but not every buyer has 100% of the sum immediately available. Mortgage lending can solve this problem, but it's important to understand in advance how long you will be taking on financial obligations. Moreover, since spring 2024, Turkish banks have resumed granting mortgages to foreigners after a nearly two-year pause — and the terms have changed noticeably. Let's look at the current mortgage repayment terms, what they depend on, and whether there are alternatives.

Minimum and maximum mortgage term: the basic figures

For foreign nationals, Turkish banks offer mortgages with the following term conditions:

• Minimum term: from 1 to 3 years (depending on the bank and specific program).
• Standard maximum term: 10 years — that's how most banks lending to non-residents operate.
• Extended term: up to 15–20 years — available at certain banks, e.g., Garanti BBVA, which is willing to offer mortgages to foreigners for up to 20 years.

Thus, the range is quite flexible: you can take out a loan for a short period (e.g., 5 years with aggressive repayment), or stretch payments over one and a half to two decades, reducing the monthly burden.

Factors affecting the repayment duration

Loan currency: liras, dollars or euros

A mortgage in Turkey for foreigners can be taken out in Turkish liras (TRY), US dollars (USD) or euros (EUR). Both the available term and the interest rate directly depend on the chosen currency:

• Lira loans: higher interest rates — from 6% to 13% per annum. Banks often cap the maximum term at 10 years.
• Dollar/euro loans: lower rates — from 2.99% to 8.5% per annum. The term can reach 15–20 years, as the currency risks for the bank are lower.

The rate also varies with the term: for example, under 2024 programs, for 1–5 year loans it is about 0.73% per month, and for 5–10 years — around 0.85% per month (currency — USD/EUR). That translates to approximately 8.8–10.2% annually.

Borrower's age

Turkish banks set an age limit: at the time of full repayment, the borrower must be no older than 65–70 years (the rule varies by bank). For example, if you are 55 years old, the maximum loan term will be limited to 10–15 years — until the age of 65–70. This is standard international practice, protecting both the bank and the borrower.

Down payment amount

For foreigners, the down payment is from 30% to 50% of the appraised value of the property. The higher the share of own funds, the more willing the bank is to approve a longer term — the credit risk decreases. If the borrower or their family already owns real estate in Turkey, the maximum loan amount may be cut to 25% of the property value.

Early repayment: can you close the mortgage early?

Yes, Turkish banks allow both full and partial early repayment. However, a fee is charged — usually 2% of the outstanding balance. This is a standard condition for most lending institutions. The penalty applies to the amount you pay in excess of the schedule, so if you plan to close the loan early, budget an additional 2% for the transaction.

Also keep in mind that a bank's mortgage offer is valid for a limited time — typically 4 months. If necessary, it can be extended to 18 months, but with an additional 1% fee. This is important if you haven't yet chosen a specific property or are in the process of negotiating with the seller.

Alternative to a mortgage: interest-free installment plan from the developer

Many developers in Turkey offer their own programs — interest-free installments to foreign buyers. This is especially relevant for new builds and projects under construction. Installment periods are usually shorter than bank mortgages — from 6 months to 2–3 years, but you pay no interest and avoid a complex bank check. If you have the funds for a down payment (often 30–50%) and are ready to pay off the remainder within a tight timeframe, a developer's installment plan can be more convenient than a mortgage loan.

Summary

The mortgage repayment terms in Turkey for foreigners today range from 1 to 20 years. The standard ceiling is 10 years, but Garanti BBVA and some other banks are willing to lend for 15–20 years. The final term is influenced by the loan currency, the borrower's age, the down payment amount, and credit history. Early repayment is possible with a 2% fee. If you want to avoid interest altogether, consider the interest-free installment plans from Turkish developers — they meet the needs of many buyers without extra bureaucracy. In any case, before signing a contract, it is advisable to consult an independent mortgage broker who knows the current conditions of several banks and can help you choose the optimal loan term.