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The Turkish DenizBank has announced the launch of a mortgage lending scheme for foreign citizens, marking a significant change in the country’s banking practices. Previously, foreigners were unable to take out mortgages in Turkey.
According to the terms of the new scheme, mortgage loans are only provided for the purchase of apartments from investors in already completed new developments, excluding the secondary housing market. The mortgage is offered in US dollars or euros for a period of up to 5 years, with a monthly interest rate of 1.25%. The maximum loan amount is limited to half of the appraised value of the property.
Before this, foreigners mainly relied on interest-free instalment plans from developers until the completion of construction. Previous mortgage schemes, which allowed foreigners to obtain loans for up to 50% of the market value of the property for a period of up to 10 years, were suspended several years ago.
