Mortgage is a system which has been used rather than housing loan since 2007
There is a complication about the difference between mortgage and housing loan. By law, which regulates the housing financial system, effectuated in 2007, housing loan has been named as ‘mortgage’. Mortgage offers loan with low interest rate and long term. Interest rate may be stable or changable. Mortgage in Turkey is provided only by banks.
Purchased house is hypothecated for mortgage loan.
Banks establish a lien on purchased house as security deposit in their favour. It is also possible to benefit from mortgage for personal cash needs such as health and education issues of consumers, providing a bailable house. Real estate properties which has commercial character can not be hypothecated. Bank that provides mortgage, does not pay to credit user but seller of the sold house.
25 % down payment is required for buying a house by mortgage.
The house that you plan to buy is assessed by an expert. 75 % of the value, which SPK-BDDK licensed appraisement firms determine, can be turned into mortgage. You can visit the banks and demand appraisement for the house that you are going to buy in order to know how much you can benefit from mortgage.
It is possible to avail yourself of more than one mortgage.
You can avail yourself of more than one mortgage from different banks for the same house, or from the same bank for different houses. There is no legislative regulation which restrict this situation so the bank evaluate your ability to pay only, in extension period.
Mortgage applications are granted in 2-3 days
Generally, mortgage applications do not require guarantor. The process is finalized after submission of documents to the bank. If the bank approves the application, an expert is sent to the house for an expertise. Final decision is made based on this report in 2-3 days.