Denizbank, one of Turkey’s largest banks, has made a significant move by offering mortgage loans to foreign nationals. This opens up new possibilities for international investors looking to purchase property in Turkey.
Mortgages provide an opportunity to extend the payment period for Turkish real estate purchases. This can be a crucial factor for clients who prefer flexible payment options and want to spread their financial obligations over a longer period.
However, it’s important to note that the current lending terms have become stricter compared to previous periods:
- Mortgages are only available for the purchase of apartments in new buildings. Additionally, the building where the apartment is located must be completed and ready for occupancy.
- The mortgage loan is provided in US dollars or euros and has a term of up to 5 years.
- The interest rate is 1.25% per month.
- The loan amount cannot exceed half of the appraised value of the property.
It’s worth noting that foreign citizen mortgages were frozen a few years ago. During that time, investors could either use interest-free installments from the developer until the end of construction or pay the full amount upfront.
The revival of foreign mortgages by Denizbank marks a significant development in the Turkish real estate market. It is expected to attract renewed interest from international investors, particularly those seeking investment opportunities or a second home in Turkey.
Here are some key implications of this move:
- Increased accessibility to Turkish real estate for foreign buyers
- Potential boost for the Turkish real estate market, especially the new construction segment
- Diversification of investment options for foreign investors
- Potential for increased foreign investment in Turkey
Overall, the reintroduction of foreign mortgages by Denizbank is a positive step that could have a significant impact on the Turkish real estate market. It will be interesting to see how this move unfolds and how other banks respond in the coming months.
