The conditions and required documents for applying for a mortgage loan vary by bank, although many banks require similar paperwork and meet common criteria. Some typical requirements that banks set for a mortgage loan include the following:
- To protect against potential declines in property values during market downturns and to reduce payment risk, banks commonly request a down payment equal to approximately 20–25% of the purchase price as collateral.
- Most banks take a mortgage lien on the purchased property; some banks may also request a guarantor in addition to the mortgage.
- Home-related insurance—such as personal life insurance, earthquake insurance, and property insurance—is typically mandatory for mortgage loans at many banks.
- Banks also require a completed application form from the applicant.
What Is the Mortgage Loan Application Form?
The application form is the document that customers must fill out and submit to the bank when requesting a mortgage. Information typically requested on a mortgage application form includes:
- Full name,
- National ID number,
- Home and work addresses,
- Home, work and mobile phone numbers,
- Individual tax number,
- Education level,
- Military service status,
- Marital status,
- Whether the applicant currently rents or owns a home.
Some banks also request financial details on the application form. Those financial details may include:
- List of real estate owned,
- Income from salary, rent, interest or other sources,
- Monthly net expenses,
- Accounts held at other banks,
- If applicable, vehicle make and model year.
What Documents Are Needed to Apply for a Mortgage?
Required documents for a mortgage vary between banks, but several items are commonly requested. Documents commonly required by many banks include:
- Turkish ID card (some banks may accept a driver’s license or passport),
- Certificate of residence,
- Proof of income (pay stubs, tax certificates, etc.),
- Title deed showing apartment ownership (kat mülkiyeti),
- Title deed for shared ownership or parcel rights (kat irtifakı),
- Occupancy permit (yapı kullanım izin belgesi),
- Copies of the construction permit (inşaat ruhsatı).
Who Can Benefit from a Mortgage Loan?
Applicants for a mortgage must be at least 18 years old. Adults who can document their income may apply to banks for a mortgage. Those who cannot prove an income are generally ineligible for mortgage financing. These are the most basic eligibility criteria, but meeting them does not guarantee loan approval. Mortgage approval depends on a separate evaluation process conducted by the bank.
What Income Documents Are Required for a Mortgage?
Income documents required vary with an applicant’s profession and how they earn income. Depending on the source of income, applicants should prepare the following documents:
- Private sector employees: pay slips, company signature circulars, supporting documents for additional income if any, and social security (SGK) statements.
- Civil servants: pay slips and supporting documents for any additional income.
- Retirees: pension statements and documentation of any additional income.
- Business owners or partners: up-to-date tax certificate, signature circular, registration document from the relevant chamber, balance sheet and income statement, and trade registry gazette.
Under What Conditions Is a Mortgage Approved?
The applicant’s credit score plays a key role in mortgage approval. When a mortgage application is approved, banks typically accept the purchased property as collateral, which makes mortgages less risky compared with unsecured loans. Mortgages, however, usually involve larger amounts and longer terms, so banks scrutinize applicants’ prior credit history. A low credit score reduces the likelihood of approval not only for mortgages but for other loan types as well.
How Can I Check My Credit Score?
To check your credit score, you can use the government e-Devlet portal. e-Devlet allows one free credit score inquiry per month, but you need an e-Devlet password to sign in. If you don’t yet have a password, you can obtain one at PTT branches for a fee. If you previously obtained a password but forgot it, you can recover it from the e-Devlet login page; note that a phone number registered with the system is required to reset the password online. If your phone number is not registered, you can renew your password at a PTT branch for a fee.
If you have an e-Devlet password, follow these steps to obtain your credit score:
- Log in to e-Devlet with your national ID number and password.
- Select the “Institutions” section and choose “Banks Association of Turkey.”
- From the services provided by the Banks Association, select “Risk Center Report Request.”
- Click the “New Registration” option on the page that opens.
- Create the report request; you will receive an SMS when the report is ready.
- After receiving the SMS, return to the same page to view your credit score.
Note that free credit score queries via e-Devlet are limited to once per month. If you request your credit score once, you must wait one month to make another free inquiry.
What Are Mortgage Interest Rates?
Mortgage interest rates fluctuate with market conditions and over time. The following are example starting rates offered by various banks (subject to change):
- Yapı Kredi: starting from 0.89%
- Garanti BBVA: starting from 0.91%
- Türkiye Finans: starting from 0.79%
- ING Bank: starting from 0.89%
- Akbank: starting from 0.79%
- Halkbank: starting from 0.94%
- Albaraka Türk: starting from 0.79%
- Fibabanka: starting from 1.20%
- HSBC: starting from 1.50%
- Denizbank: starting from 1.39%
- Alternatif Bank: starting from 0.89%
What Are Typical Loan Terms and Amounts for Mortgages?
Loan terms and available amounts vary by bank. Typical offerings from several banks include:
- Yapı Kredi: terms up to 10 years, loans between 10,000 TL and 1,000,000 TL.
- Garanti BBVA: terms up to 20 years, loans between 10,000 TL and 500,000 TL.
- Türkiye Finans: terms up to 10 years, loans between 1,000 TL and 10,000,000 TL.
- ING Bank: terms up to 10 years, loans between 1,000 TL and 1,000,000 TL.
- Akbank: terms up to 10 years, loans between 10,000 TL and 1,000,000 TL.
- Halkbank: terms up to 15 years, loans between 500 TL and 2,000,000 TL.
- Denizbank: terms up to 25 years, loans between 10,000 TL and 1,000,000 TL.