Considering that the number of foreign nationals living in Turkey is increasing day by day, it is not surprising that banks start to give loans to foreigners if they meet the specified conditions.
Opportunities offered to foreign investors in Turkey in line with economic moves enable them to turn to real estate in particular. Especially in Turkey, which offers very rich alternatives in luxury real estate, foreigners often request home loans from banks because of the opportunity to acquire Turkish citizenship through investment.
Each of the banks that provide housing loans to foreigners offers different payment plans with various interest rates within their own systems. In addition to giving housing loans to foreigners living in Turkey, banks also provide loans to foreigners outside the country. As a result of the newly enacted Reciprocity Law and the banks’ offer of housing loans to foreigners, there has been a great increase in the number of foreigners who have started to own a house in Turkey.
What are the Credit Application Conditions for Foreigners?
The primary condition for foreigners residing within the borders of Turkey to obtain a loan from the bank is to have a residence permit and work permit of at least 12/24 months. However, these documents alone are not enough and a guarantor is also required. Foreign nationals are required to show a Turkish citizen as a guarantor in case they leave the country without returning.
If a loan is requested to purchase a real estate, the title deed and invoices of the real estate in question must also be submitted to the bank, because banks determine the loan they give to foreigners according to the value of the relevant real estate.
Foreigners who have a work permit in Turkey must also submit their salary slips and documents showing their 3-month income to the bank. Thus, it is not possible for unemployed foreigners to take out loans. However, in order to facilitate the situation, foreigners who are unemployed in Turkey may also be requested to submit a statement of their bank accounts in their own country showing the account movements.
What are the Documents Required for a House Loan Application from Foreigners?
Foreign nationals who will apply for a loan in Turkey must first open a bank account. Other requests can be listed as follows:
• Copy of passport
• Title deed of the real estate to be purchased
• Guarantee
• Local guarantor or cash collateral
• Proof of income
• Work and residence permit
Other than these documents, the documents that may be requested may differ from bank to bank. Therefore, before applying, it is important to confirm the required documents from the relevant bank’s website.
Which Turkish Banks Give Credit to Foreigners?
While almost all foreign-based banks give unconditional loans to foreigners, only Ziraat Bank, Vakıfbank, İşbank, Garanti Bank, QNB Finansbank, Akbank, Halkbank, from Turkish banks, give loans to foreigners.
It should not be forgotten that each bank has its own operating system and they determine their terms and conditions accordingly. Therefore, when you want to take advantage of the housing loan opportunities, you can browse the online banking pages of the bank you have chosen or contact customer services via the relevant phone numbers.
As GRAND EMLAK, we offer complete consultancy services for real estate investments in Turkey. If you want to rent, sell or buy a real estate, we are here to answer every question in your mind and direct you to the most profitable investments.
