Can foreigners get a mortgage in Turkey?

Can foreigners get a mortgage in Turkey: a brief answer

Yes, foreign citizens can obtain a mortgage in Turkey. As far back as 2007, the Turkish government revised and simplified the mortgage lending law for non-residents, making the procedure transparent and accessible. Today, Turkish banks willingly lend to foreigners—citizens of Russia, Ukraine, Belarus, Kazakhstan, EU countries, and the Middle East. Moreover, according to official statistics, in April 2025, 14.8% of all residential real estate in the country was purchased precisely with a mortgage—that's over 17,000 properties, a 147% increase over April 2024 figures.

However, mortgages for foreigners have their own specifics: rates, borrower and property requirements differ noticeably from conditions for Turkish citizens. Let's go through everything in order.

Which banks issue mortgages to foreigners

Mortgage loans to non-residents are provided by the largest state and private banks in Turkey. Among them:

• Ziraat Bankası — a state bank, one of the most loyal to foreign borrowers;
• Halkbank — another state bank with programs for non-residents;
• Garanti BBVA — a private bank, offering loan terms up to 20 years and a fixed rate for the entire period;
• Denizbank — actively works with foreigners, especially citizens of CIS countries;
• İş Bankası — one of the oldest private banks, also lends to non-residents.

Each bank sets conditions individually: much depends on the borrower's citizenship, income, loan currency, and the specific property. That is why it makes sense to consult a mortgage broker or several banks directly before applying.

Mortgage conditions for foreigners in 2025

Loan conditions vary from bank to bank, but the overall picture is as follows:

• Interest rate: in foreign currency (dollars, euros) — from 4% to 9% per annum. In Turkish lira, rates are significantly higher: from 14% to 40%+ per annum due to high inflation in the country. Some banks offer starting rates from 2.99% under special programs.
• Down payment: from 30% to 50% of the property value. The more own funds the borrower is ready to contribute, the more willingly the bank approves the loan.
• Loan term: usually up to 10 years, Garanti BBVA offers up to 20 years. In some cases — up to 15 years.
• Maximum loan amount: from $50,000 to $1,000,000 and above — depends on the bank and the borrower's solvency.
• LTV (Loan-to-Value): banks finance up to 50–70% of the property value. For amounts up to 5 million lira, LTV can reach 90% (i.e., down payment — only 10%), but such conditions are not available to everyone.
• Borrower's age: from 18 to 70 years at the time of loan maturity.
• Bank commission: one-time, from 0.5% to 2% of the loan amount.

An important nuance: banks are very reluctant to issue mortgages in Turkish lira due to the high volatility of the national currency. The vast majority of loans for foreigners are denominated in dollars or euros. This, on the one hand, reduces currency risks for the borrower, and on the other, requires proof of income in the relevant currency.

What affects the interest rate

1. Loan currency: dollar and euro loans are noticeably cheaper than lira ones.
2. Down payment size: the higher it is, the lower the rate.
3. Borrower's financial profile: stable verified income improves conditions.
4. Rate type: fixed for the entire term is more reliable, but may be slightly higher than the initial variable rate.

Property requirements

Not every property qualifies for mortgage lending. Banks set clear requirements:

• The property must be fully completed (fit for habitation) or at a stage of at least 90% readiness. The bank will not take early-stage construction as collateral.
• The property must have a full set of title documents (Tapu — certificate of ownership, cadastral plan).
• The property must be insurable: compulsory earthquake insurance DASK (Doğal Afet Sigortaları Kurumu).
• The property must not be located in an area closed to foreign acquisition (military zones, territories near state facilities).

In practice, this means that mortgages are mainly given for ready apartments and villas — both in new builds and on the secondary market. Properties at the excavation stage are not suitable for a mortgage.

Which documents will be needed

The document package for obtaining a mortgage in Turkey is standard, but the bank may request additional paperwork on an individual basis. The basic list is as follows:

• Valid passport (current, with a notarized translation into Turkish).
• Turkish tax number (Vergi Numarası) — can be obtained at the tax office in 15 minutes.
• Proof of income: a certificate from the place of work (2-NDFL or a bank form), a bank statement showing account movements, a certificate of deposit and accrued interest, or a rental agreement confirming passive income.
• Property valuation report — prepared by an accredited appraiser; the service costs around 5,000–10,000 lira.
• Property documents: Tapu (or preliminary contract), cadastral plan.
• DASK policy — compulsory earthquake insurance.

If the borrower is married, additional documents are required: the spouse's passport, a marriage certificate with a sworn translation into Turkish.

Application process: a step-by-step guide

1. Selecting a property. You choose a property that meets the bank's requirements (at least 90% readiness).
2. Obtaining a tax number and opening an account. The process won't start without a Turkish tax number and bank account.
3. Property valuation. You engage an accredited appraiser to prepare an official report.
4. Submitting an application to the bank. You submit the full package of documents. The bank reviews the application from a few days to two to three weeks.
5. Approval and signing the contract. After approval, the loan agreement is signed, and the bank transfers the funds to the seller — directly, not to the borrower's account.
6. Registration of the Tapu. The title is registered with the Cadastral Office with an encumbrance in favor of the bank until the loan is fully repaid.

The entire process, from selecting the property to receiving the Tapu, usually takes from 2 to 6 weeks.

Pitfalls and what to consider

A mortgage in Turkey is a real tool, but it has nuances that are important to know in advance:

• High overpayment with a lira loan. Due to inflation, rates in Turkish currency can exceed 40% per annum — such a loan makes sense only for a very short term.
• Impossibility of financing "off-plan" properties. If you want to buy an apartment in a complex under construction at the foundation stage, a mortgage is not available. For such cases, there is an alternative — an installment plan from the developer.
• Additional costs. Besides interest, you pay: property insurance (2–3 thousand lira), property valuation, bank commission (0.5–2% of the loan amount), translator and notary services.
• Solvency check. Banks carefully verify income. If you cannot prove a stable legal income in the currency, the loan may be denied.
• Currency control. When purchasing real estate with VAT exemption, payment must be made in foreign currency from abroad. A mortgage taken from a Turkish bank is formally not considered "funds from abroad" — this point requires clarification with a tax consultant.

Alternative to a mortgage: installment plans from developers

Many foreign buyers in Turkey take a simpler route — they arrange an interest-free installment plan directly with the developer. This is especially relevant for properties at an early stage of construction. Installment plan conditions:

• Down payment — from 20% to 50%;
• Term — from 6 months to 5 years;
• No bank interest or bureaucracy;
• No proof of income or credit history required.

Installment rates with developers are lower than bank rates — often 0% as part of promotions or fixed 5–7% per annum on the outstanding balance. This is a solid alternative for those who don't want to deal with bank bureaucracy.

Conclusion

A mortgage for foreigners in Turkey is not a myth, but a fully functional tool. State and private banks issue loans to non-residents secured by the purchased real estate. The key conditions are the property's readiness of at least 90%, a down payment from 30%, and verified income in the currency. Rates in dollars and euros remain in the range of 4–9% per annum, which is comparable to mortgage programs in many European countries.

However, due to high inflation and lira volatility, loans in Turkish currency remain risky. And for properties at an early stage of construction, a mortgage is completely unavailable — here, the developer's installment plan comes to the rescue. In any case, before making a decision, it is worth consulting a local mortgage broker and comparing offers from several banks: individual conditions may differ significantly.