Many people take out mortgage loans to become homeowners. With a mortgage, individuals meet their cash needs to buy a home by borrowing from banks. Because mortgages involve large amounts and long repayment periods, many borrowers consider refinancing their home loans to obtain better interest rates or payment terms.
People research how mortgage refinancing works and which banks offer the most favorable mortgage restructuring options. To qualify for a mortgage or for refinancing, applicants must meet certain requirements set by banks.
A steady income and the ability to repay the borrowed amount are essential to obtain and restructure a mortgage. This article reviews the process and considerations for people who want to refinance their home loans.
How Is Mortgage Refinancing Done?
Many borrowers wonder how to restructure large loans they have taken out. Mortgage refinancing is among the most requested restructuring services. The interest in refinancing mortgages largely stems from the high loan amounts and long repayment terms involved.
If borrowers struggle to meet their mortgage payments, they can apply to the bank that issued the loan to request a refinancing or restructuring. When a borrower requests restructuring, the bank recalculates the debt using current refinancing interest rates and proposes a new repayment schedule. Typically, refinancing extends the repayment period and reduces the monthly installment amount.
Refinancing usually involves re-lending the outstanding balance, which can incur additional fees or costs. Borrowers should consider these potential expenses before proceeding with a refinancing request.
Common costs associated with mortgage refinancing may include a file processing fee and a loan allocation fee. Those considering refinancing should account for such extra charges when deciding whether to proceed.
Applicants must submit all required documents completely when applying for refinancing. If paperwork is incomplete, the process may be delayed. Therefore, ensure all documents are prepared and submitted in full.
Who Can Refinance a Mortgage?
Banks set eligibility criteria for granting loans and for refinancing. These criteria vary between banks, and not all applicants qualify for mortgage refinancing.
Generally, applicants must be at least 18 years old, though some banks require a minimum age of 20. Most banks also limit the borrower’s age at the maturity of the loan—commonly the borrower should not be older than 65 when the loan matures. Those who meet the age and other requirements can apply for refinancing.
Refinancing is typically available to borrowers who are committed to continuing payments but need a more affordable schedule. Banks may offer restructuring to customers who demonstrate a willingness to keep up with payments but face temporary difficulties.
What Are the Requirements for Mortgage Refinancing?
Applicants seeking to refinance their mortgage must satisfy several conditions that differ by bank. In general:
- The bank will compare the original interest rate with the new proposed rate and must approve the difference and the overall restructuring terms.
- The borrower’s payment history, such as whether installments were paid on time, will be evaluated as part of the refinancing assessment.
If these general conditions are met, the borrower can apply to the relevant department of their bank. A bank official will review the application and supporting documents and determine whether to approve the refinancing request.
Which Banks Offer Mortgage Refinancing?
Not all banks provide mortgage refinancing. Banks that offer the service will consider requests based on their policies and risk assessments. If a borrower misses mortgage payments for up to 90 days, some banks may proactively propose restructuring to avoid initiating legal follow-up. However, if the borrower initiates the request, the decision to grant refinancing rests with the bank.
If your current bank declines your refinancing request, you may seek refinancing from another bank. The following list includes banks known to offer mortgage restructuring and competitive refinancing options:
- Ziraat Bank
- Türkiye Halk Bankası
- VakıfBank
- Akbank
- Garanti Bank
- DenizBank
- Türkiye İş Bankası
- Yapı Kredi Bank
- ING Bank
- TEB
- QNB Finansbank
These banks are commonly considered among those offering favorable mortgage refinancing options. Compare each bank’s refinancing terms and interest rates before applying.
Ziraat Bank Mortgage Refinancing
Ziraat Bank offers mortgage refinancing during announced periods. To apply, consult with Ziraat Bank and monitor current interest rates. Confirm whether Ziraat Bank has an active refinancing program before submitting your application.
The current refinancing interest rate listed for Ziraat Bank in this article is 1.43% monthly.
Türkiye Halk Bank Mortgage Refinancing
Halkbank provides mortgage refinancing services. Contact a Halkbank branch to request refinancing; an authorized officer will review your eligibility and start the process if requirements are met.
The current refinancing interest rate listed for Türkiye Halk Bankası in this article is 1.38% monthly.
VakıfBank Mortgage Refinancing
VakıfBank offers mortgage refinancing with equal installment repayment options when approved. Submit an application at a VakıfBank branch; the bank will proceed if your request meets the bank’s conditions.
The current refinancing interest rate listed for VakıfBank in this article is 1.37% monthly.
| Loan Amount | 500,000.00 TL | Loan Type | Mortgage Loan |
| Term | 120 | Interest Rate | 1.37% |
| Installment Period | Monthly | KKDF | 0.00% |
| Grace Period | 0 | BSMV | 0.00% |
| Total Payable | 1,021,592.39 TL | Installment | 8,513.27 TL |
| Loan Allocation Fee | 2,500.00 TL | Appraisal Fee | 1,100.00 TL |
Akbank Mortgage Refinancing
Akbank also provides mortgage refinancing. Borrowers aged between 23 and 65 who face repayment difficulties can apply to Akbank for a revised repayment plan. If applicants meet the bank’s requirements and submit complete documentation, Akbank may approve the refinancing.
The current refinancing interest rate listed for Akbank in this article is 1.37% monthly.
Garanti Bank Mortgage Refinancing
Garanti BBVA offers mortgage restructuring for customers having trouble with loan installments. Visit a Garanti BBVA branch to submit your application. A bank officer will review your documents and repayment history to determine eligibility. If approved, the monthly installment amount will decrease and the loan term will be extended.
The current refinancing interest rate listed for Garanti BBVA in this article is 1.42% monthly.
DenizBank Mortgage Refinancing
DenizBank provides mortgage refinancing services. Apply in person at a DenizBank branch; an authorized officer will evaluate your application and proceed if conditions are satisfied.
The current refinancing interest rate listed for DenizBank in this article is 1.68% monthly.
| Kredit Amount | Term | Monthly Interest Rate* | Loan Allocation Fee** | Other Fees*** | Total Fees | Monthly Total Cost Ratio**** | Annual Total Cost Ratio**** |
|---|---|---|---|---|---|---|---|
| 100,000 TL | 0-60 Months | 1.68% | 0.5% | 1,818.60 TL | 2,318.60 TL | 1.9574% | 23.4894% |
| 100,000 TL | 61-120 Months | 1.68% | 0.5% | 1,818.60 TL | 2,318.60 TL | 1.9136% | 22.9635% |
Türkiye İş Bankası Mortgage Refinancing
İş Bankası offers refinancing for customers who struggle with mortgage payments. Applications must be made in person at İş Bankası branches. Submit complete documentation; the bank will review your payment history and income to determine eligibility and propose a new repayment plan if approved.
The current refinancing interest rate listed for İş Bankası in this article is 1.38% monthly.
Yapı Kredi Mortgage Refinancing
Yapı Kredi offers mortgage restructuring for borrowers facing difficulties with installments. Apply at a Yapı Kredi branch to request refinancing. If approved, the bank will provide a plan that reduces monthly payments by extending the loan term.
The current refinancing interest rate listed for Yapı Kredi in this article is 1.39% monthly.
| Amount | Term (Months) | Monthly Interest Rate | Total Fees | Monthly Cost Ratio | Annual Cost Ratio | Installment |
|---|---|---|---|---|---|---|
| 100,000 TL | 60 | 1.39% | 1,800 TL | 1.4400% | 18.7303% | 2,468.08 TL |
| 100,000 TL | 120 | 1.39% | 1,800 TL | 1.4100% | 18.3233% | 1,717.75 TL |
ING Bank Mortgage Refinancing
ING Bank provides mortgage refinancing for customers who have difficulty paying installments. If you meet the bank’s requirements, ING will propose a new repayment schedule to ease monthly payments.
The current refinancing interest rate listed for ING Bank in this article is 1.47% monthly.
TEB Mortgage Refinancing
TEB offers mortgage restructuring to help borrowers who cannot meet their current installment amounts. Applicants must meet the bank’s conditions and submit complete documentation to be considered for refinancing.
The current refinancing interest rate listed for TEB in this article is 1.59% monthly.
QNB Finansbank Mortgage Refinancing
QNB Finansbank provides mortgage refinancing services. To apply, visit a QNB Finansbank branch with the required documents; if you meet the bank’s criteria, your mortgage may be restructured.
The current refinancing interest rate listed for QNB Finansbank in this article is 1.66% monthly.
This article reviewed the banks that offered some of the most favorable mortgage refinancing options in 2021.