The Turkish mortgage market is still quite young as mortgages only became available in Turkey in 2007, As Turkey has been largely unaffected by the recent global economic crisis, availability of mortgage products is generally good. Mortgages are available in Turkish Lira, Euros Sterling or US Dollars.
Affordability is the key word when it comes to assessing borrowing ability in Turkey. Your level of income is taken into consideration of course, but so is your level of debt. The simple rule of thumb is that your monthly mortgage payment must not exceed 50% of your monthly income after tax.
Different lenders do apply slightly different criteria, this is just one more reason to discuss your requirements with us before committing yourself to one lender.
Although there is technically no
upper limit on the amount you can borrow, many lenders specify a minimum amount, usually around 30.000 Euros or equivalent.
As with all mortgage applications, you will find the greater your deposit, the better your interest rate. The most attractive rates are offered for schemes where you borrow up to 50% of the property valuation. There are many competitive rates available for borrowing between 50% and 75% but once you get beyond this figure the schemes become very scarce.
If you are offered finance above 75% loan to value you will probably find it is either a small tranche of funds from one lender that is likely to be used up quickly, alternatively it may be a scheme where the amount borrowed is offset by the developer.