Mortgages and Loans

Mortgages and Loans

The new mortgage legislation was approved by the Turkish Parliament in February 2007 for effect from January 2008. This is seen as a major reform and is expected to have a significant effect on the Turkey Property Market and will trigger the local demand for property ownership. The law also allows for loans on property without a current license from the Housing Development Administration, which equates to loans for off plan projects and ideal for investors.

The loans available at present are quite basic and are based on the repayment model. There are various loans products available from major Turkish Banks. The schemes will vary by bank and change over time. One such bank is currently offering the following product:

• Available for existing and off plan projects
• Available for local and foreign purchasers
• Maximum LTV of 80%
• Maximum term is 20 years
• Minimum loan value of € 40,000
• Maximum loan value of € 200,000
• Available in Euros and Sterling
• Rates from 5.9% fixed in Euros or 6.9% fixed in sterling for one year

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