What is the mortgage rate for foreigners?

Do Turkish banks offer mortgages to foreigners?

Yes, Turkish banks readily lend to foreign nationals. Mortgages are available to buyers from Russia, Ukraine, Belarus, Kazakhstan, and other CIS countries, as well as citizens of the European Union and the Middle East. The only restriction: if Turkish law prohibits citizens of your country from purchasing real estate on its territory, then a mortgage will also be unavailable. However, for the vast majority of foreigners, this is not an issue.

According to official statistics, in April 2025, 14.8% of residential real estate in Turkey was purchased with a mortgage — that's over 17,000 properties, 147% more than a year earlier. The mortgage lending market for non-residents is actively growing.

What is the mortgage rate for foreigners in Turkey?

Interest rates depend on the loan currency and the specific bank. In 2026, the range looks like this:

• In dollars or euros: from 5.5% to 9% per annum. This is the most popular option among foreigners because the exchange rate is predictable and the overpayment is moderate.
• In Turkish lira: from 14% to 35%+ per annum. Due to high inflation in Turkey, lira rates are significantly higher. However, when the national currency weakens, the real cost of debt in dollar or euro terms may decline.

Some sources point to programs starting at 2.99% per annum in foreign currency, but such offers are usually limited or promotional and require clarification with a specific bank. The average market rate for foreigners in 2026 stays within the 6–8% per annum range in USD or EUR.

What determines the interest rate?

Banks set individual terms for each borrower. The final rate is influenced by:

1. Loan currency. Rates in lira are always higher than in dollars or euros due to inflation risks.
2. Down payment size. The more of your own funds you put down, the lower the rate. Standard down payment is 30–50% of the property value.
3. Credit history and income. A proven stable income (certificates, statements, tax returns) reduces the bank's risk and can lower the rate by 0.5–1%.
4. Property type. Rates for residential real estate are usually lower than for commercial.
5. Loan term. For short terms (up to 5 years), banks often offer more favorable interest rates.
6. Specific bank. Garanti BBVA, Ziraat Bankası, Yapı Kredi, İş Bankası, and DenizBank — each has its own lending policy.

Mortgage terms for foreigners: key parameters

Regardless of the bank, typical mortgage lending terms for non-residents in Turkey are as follows:

• Down payment: from 30% to 50% of the property value. For commercial properties — at least 50%.
• Loan amount: from $50,000 to $1,000,000 and above. Some banks increase the limit for wealthy clients.
• Loan term: from 1 year to 10–15 years. Garanti BBVA offers programs up to 20 years.
• Currency: USD, EUR, GBP, RUB (in some banks), as well as Turkish lira.
• One-time bank commission: from 0.5% to 2% of the loan amount.
• Borrower's age: from 18 to 70 years at the end of the mortgage term.
• Insurance: mandatory earthquake insurance for the property (DASK), as well as life insurance for the borrower.

Which banks give mortgages to foreigners?

The following Turkish banks are most favorable to non-residents:

• Garanti BBVA — one of the leaders in mortgage lending to foreigners. Offers terms up to 20 years and flexible conditions.
• Ziraat Bankası — a state bank with a conservative but transparent lending policy.
• Yapı Kredi — actively works with foreigners, especially with citizens of CIS countries.
• İş Bankası — the largest private bank, offers programs in several currencies.
• DenizBank — known for ruble lending programs for Russian citizens.

Conditions at different banks can vary significantly, so before applying, it makes sense to compare offers from at least two or three credit institutions.

What documents does a foreigner need for a mortgage?

The document package is standard, but each bank may request additional papers. Basic list:

• Foreign passport with a valid visa or entry stamp.
• Turkish tax number (vergi numarası) — obtained at the local tax office in 15–30 minutes.
• Proof of income: 2-NDFL certificate, bank account statement, tax return, or employer's certificate — translated into Turkish and notarized.
• Bank statement of account movements for the last 3–6 months.
• Documents for the purchased property: sale and purchase agreement, appraisal report, cadastral extract (Tapu).
• Credit history (if available) from the country of citizenship.

Step-by-step application process

1. Property selection (1–7 days). You choose the property, agree on the price with the seller, and sign a preliminary agreement.
2. Property appraisal (1–3 days). An independent appraiser determines the market value of the property — the bank will calculate the loan amount based on that.
3. Submitting the application to the bank (1 day). You provide a full package of documents and fill out a form.
4. Application review (1–2 weeks). The bank checks the borrower's solvency, the legal cleanliness of the property, and makes a decision.
5. Signing the loan agreement. After approval, you sign the contract, make the down payment, and pay the one-time commission.
6. Registration of ownership rights. The bank transfers the funds to the seller, and a lien is placed on the property in favor of the credit institution. You receive the Tapu (title deed) with a mortgage note.

The entire process takes 2 to 4 weeks, provided the documents are prepared in advance and there are no legal complications.

Alternative to a mortgage: developer's installment plan

Many foreigners choose not a bank mortgage, but an interest-free installment plan from the developer. This is especially relevant when buying housing in new buildings. Typical installment terms:

• Down payment: 30–50%.
• Term: from 1 to 5 years.
• Rate: 0% per annum.
• Processing: without credit history or proof of income.

An installment plan from the developer is a simple and profitable tool, but it is only available for properties on the primary market. On the secondary market, a mortgage is usually unavoidable.

Conclusion: mortgage rate for foreigners — what you need to know

A mortgage in Turkey for foreigners is a working and transparent mechanism. The current rate in 2026 ranges from 5.5% to 9% per annum in dollars or euros. A loan in Turkish lira will cost significantly more — from 14% to 35%+ per annum, but it may be justified with long-term planning considering the lira's devaluation.

The key factors affecting the final rate are the loan currency, the size of the down payment, and your proven income. To get the best terms, compare offers from several banks, prepare a full set of documents in advance, and consider the alternative of a developer's installment plan if you are buying a new-build property.