For those looking to buy a home with a mortgage, the banks offering the most competitive interest rates make homeownership more accessible. Recent adjustments to interest rates have resulted in notably low mortgage rates.
Banks Offering Low-Interest Mortgages
Public banks remain a primary option for many prospective homeowners. Until recently, public banks offered mortgages with up to 15-year terms and a one-year grace period on repayments. Following recent regulatory changes, the one-year repayment deferral has been removed, while the maximum loan terms remain. Therefore, as of August and onward, borrowers taking mortgages from public banks can no longer benefit from a one-year grace period.
Ziraat Bankası, Halkbank, and Vakıfbank continue to offer low mortgage rates, with typical rates around 0.87. However, buyers of newly built properties can still access lower rates—around 0.64. In practice, this means that for new-build homes, public bank mortgages can offer up to 15-year terms at approximately 0.64, while resale properties are generally financed at around 0.87 with up to 10-year terms.
Private Banks with Competitive Mortgage Offers
After public banks lowered their mortgage rates to support home purchases, private banks adjusted their rates as well. Different private banks now present a variety of interest rates and repayment term options to attract mortgage applicants.
- QNB Finansbank: Offers financing up to 80% of the property’s sale price and terms up to 180 months. Interest varies by term: for loans between 120 and 180 months the rate can be about 1.18; for 24-month loans around 0.99; and for 60-month loans about 1.00. The bank charges a 0.5% loan allocation fee and an appraisal fee (around 177 TL), and its relatively low additional costs make it an attractive option.
- DenizBank: Provides terms up to 120 months with rates starting around 1.09 and typically finances up to 75% of the property value. Appraisal and other fees can be included in the loan amount. Final interest rates may vary according to the applicant’s current credit score and the structural condition of the property being purchased.
- Garanti Bankası: Known for extended term options, Garanti offers repayment terms up to 240 months. Rates depend on the chosen term: loans up to 120 months may carry rates near 0.94, while those exceeding 120 months may be closer to 1.20.
How to Apply for a Mortgage
Whether applying at a public or private bank, certain requirements must be met to secure a mortgage. Banks typically require a down payment based on the loan-to-value ratio, proof of income or employment documents demonstrating the borrower can meet monthly payments, and confirmation that the chosen property is eligible for mortgage financing. If these conditions are satisfied, the bank assigns an appraiser to inspect the property and determine the eligible loan amount.