Budget planning is very important when buying property. Better financial planning with more options makes the process more profitable. Even when buyers have enough funds to buy a property, they may use various financing methods.
When buying a property in Turkey, the advantageous options will ensure the experience of foreign buyers. Foreigners choose Turkey for its developed real estate market.
What Are the Istanbul Property Financing Options?
As mentioned above, there are various options available for Istanbul property investment financing. While the most popular way is bank loans, there are more. So, let’s look at the foreign buyer financing in Istanbul for real estate.
Bank Loans for Financing Real Estate in Istanbul
Foreigners and locals can get bank loans from most banks in Turkey. The interest rates will vary depending on the financial situation of the buyer and bank. Generally, banks ask for at least %20 of the property value as Istanbul down payment requirements for property.
Also, they may ask for a guarantor. In addition, the interest rates may vary widely from bank to bank. In short, the Istanbul bank loans for property are generally considered the most advantageous option.
Purchasing Property in Istanbul with Developer Financing
Some real estate developers offer easy payment options to both foreign and local buyers. With the help of Istanbul developer financing, the buyers may get payment in installments with a down payment. Also, some developers offer financing in partnership with banks.
Private Lenders for Real Estate Financing in Istanbul
Private lenders for financing are another option when buying property in Istanbul. These private lenders can be both individuals and companies. Istanbul private lenders for property may be more flexible than bank loans. But the interest rates and general terms may be slightly less favorable than the bank loans.
Working with Mortgage Brokers to Purchase Istanbul Property
Brokers who are experienced in mortgages can be more helpful to foreign buyers. As they work with different banks, they may try to find more tailored options for their customers. But in any case, Istanbul mortgage brokers should be researched. It is crucial to work with an experienced and professional mortgage broker.
What Documents Do I Need to Provide to Qualify for Financing?
You should know that each option may require different documents. But while speaking in general, you will need the same core documents as default. The generally required documents for Istanbul real estate financing;
- Application form
- Passport and notarized copy
- Proof of applicant’s income
- Bank statements showing at least 3 months
- Credit note and credit history proof
- Turkish tax number (TIN)
- Title deeds of all properties owned in all countries
- The title deed of the property that will be bought
- Real estate valuation report
You should take note that all documents can be asked in Turkish, apostilled, and notarized. Also, opening a bank account from the beginning will be helpful during the whole process.
What Are the Typical Interest Rates for Bank Loans?
In Turkey, the interest rates for bank loans will depend on various variables. In general, the tax rates will be between 5% to %20 per year. It will be beneficial to research all bank options to get the best interest rates.
The Istanbul mortgage rates will depend mainly on the loan amount and term. It will also depend on the applicant’s financial situation, initial payment amount, and the selected debt currency. The main things that should be firstly considered must be stable income and the credit note.
What Are the Differences Between Financing Options for Turkish Citizens and Foreigners?
Financing options do not really vary between foreigners and locals. Even in some situations, foreigners may get more options with easier processes. In some cases, only some required documents will differ.
Nearly all banks in Turkey have special offers for mortgage loans for foreigners. Depending on the chosen loan currency, they offer advantageous interest rates. Also, there will be flexible payment options.
Private lenders offer more opportunities to foreign customers. They will have more loan currency options. In addition, they will offer more tailored and personalized services including information in more languages.
How Can I Easily Finance Property Purchase in Istanbul Turkey?
While purchasing property, the easiest way working with a one-stop real estate company. If your working company is experienced and professional, all of these processes will be done easily.
So, it is very important to research a reputable real estate company with a wide range of services. These services should include laws to preserve your rights. The company should understand your situation, needs, and expectations.
Starting from the very beginning phase of your journey, you and the company should have good communication. All processes from choosing the right property to completing title deed conveyance should be done fast and faultlessly.
Also, financing a property purchase in Turkey will be easiest in Istanbul. More extensive amenities and services in the city will provide more options for buyers. It would be clearly one of the top 10 reasons to live in Istanbul.
Istanbul Homes ® for Financing Property Purchase in Istanbul with Modern and Easy Methods
At Istanbul Homes ®, we give all attention to our customers starting from the very first contact. Our company values are based on %100 Happiness and Zero Failure. We are working accordingly to these values to provide full happiness to our customers.
As mentioned, the services of Istanbul Homes include every step of property purchase. You may get legal support from lawyers experienced in real estate law and mortgage. You may get the best property options from professional local real estate agents.
Our local real estate agents are professionals with years of experience. Our agents will find the most suitable property for your budget and expectations, and then our team will complete the whole process on your behalf.
Even if you desire, you may not travel to Turkey during the whole process. Istanbul Homes offer the TeleMortgage system for remote mortgage applications.
In short, Istanbul Homes offers one-stop real estate services. You may benefit from various support while purchasing your dream property in Istanbul. You can contact us anytime to explore our services!