The Turkish Government allows banks to accommodate foreigners with long-term loans to purchase property. The documents needed for receiving a loan and requirements set by banks are listed below.
The following documents are required to apply for receiving a loan in Turkish banks:
– international passport (original document and copy);
– earnings verification letter proved by the employer (entrepreneurs provide accounting statements for the past 2 years);
– tax paid certificate for the past year which is issued by the taxation office;
– bank statement proving that the account has enough money;
– letter describing monthly spending;
– real estate purchase/sale contract;
– TAPU of the subject of the agreement;
– individual tax number;
– in case you have loans in other banks, provide the certificates proving it;
– other documents provided upon the request of a bank.
It should be noticed that all the documents provided to the bank must be translated in Turkish by the certifies translators and notarized. The loan approval is issued within 5 working days.
Let’s talk about bank requirements for loan granting for real property purchase. The loan can compose up to 60% of real estate cost which is determined by estimating specialists and can differ from the market price. There are no limits of the sum of the loan while the period can vary from 5 to 15 years. The borrower can’t be older 70. Any foreigner can get a loan who have a right to purchase real estate in Turkey. The loans are granted in EUR, USD and TRY.
All the banks provide an opportunity for loan repayment prior to maturity date while some of them charge commission which is not more than 2%. Having received real estate loan borrowers must insure the property from natural hazards, but life insurance is not obligatory. The loan is paid automatically from the account and the borrower should control the account so that it has a sufficient sum to pay.
It is worth to note that the majority of banks are willing to cooperate with their clients and grant loans for purchase of real estate which is being constructed individually.
Text: Jevgeniy Nazarenko