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Process Of Bank Loan Before Buying A Property In Bursa

2 February 2021
Process Of Bank Loan Before Buying A Property In Bursa

Purchasing a Turkey property in Bursa has never been this easy before. All the legal procedures, including loan sanction, citizenship amendment, and the growing facilities, have been in favor. Through the policy of 'citizenship by real estate' investment, one can quickly get through the borders of Turkey. Alongside, these features have been a cherry on top. According to the national data, Turkey tops the list in real estate investment.

Foreign investors are showing immense interest in the Turkish industry. Statistics show that by 2023, the Turkish hotel industry will grow an exciting revenue of 12.4 billion USD, and the healthcare industry will make $20 billion. This unbelievable profit margin is driving investors crazy across the world. Considering this mammoth size opportunity, the Turkish government is thinning out its policies regarding foreign investors. With the advent of technology and the communication system, foreign investment has also progressed. Now, the question prevails about the necessary measurements that one should take before buying a turkish property. By following the under-mentioned steps, one can easily be eligible for a mortgage from a Turkish bank.

Loan Amount For A Turkish Property

No bank will cover the entire amount of your property. All the banks abide by this common rule across the world. But the large amount will be covered by the bank. 80% of the total amount is supported. Responsibilities for the rest amount fall on the investor's shoulder. To buy apartment in Turkey, you have to go through a detailed legal procedure. In the course of this procedure, you need to spend a considerable amount on registration. Hiring an expert will cost a little more. The bank will not cover these portions. Instead, they will provide a certain amount after evaluating your property. Even if you seal the deal with €120,000, still the bank will only support you with 80% of what they have considered. If, according to the bank, that property costs €100,000, they will sanction €80,000. The rest of 40,000 is your headache. The bank assesses your capacity to repay the debt through the amount you invest.

Duration Of The Mortgage

If you are a part of turkish nationality, you will get more benefit in repaying the debt. Your fellow bank allows a tenure of almost 20 years. As it has already been mentioned, the government has thinned out some foreign investors' policies; they also get a remarkable term of 15 years. Though the usual duration is only three months, the tenure depends on the loan amount. The same regulation prevails when you buy apartment in İstanbul.

Interest Rates In Turkey

Turkish banks have increased security measurements since 2000. Better valuation experts, under-valuation of the property, and several other tools have been used for an updated security mechanism. Yet, as the real estate industry has been the backbone of the Turkish economy, the government has also introduced some lucid policies for foreign investors. But there is a confusing matter with Turkish interest rate. Sometimes it is referred to as "interest per month" and sometimes "interest per year." The fixed mortgage rate is famous among foreign investors. It is also renowned among people who buy apartments for sale. Unfortunately, interest has leaped a little high in Turkey. In 2013, it was 0.7%/month. Now, it has increased to 1.4%/month.

Types Of Loan

There is only one type of loan available for a turkish property. That is repayment. You can only repay the amount you have taken from the bank within a period. Under this period, both the loan and interest are paid back.

Process Of Loan

The process of loan sanction in a Turkish bank is longer than you expect. To buy apartments for sale in Istanbul, you go through this lengthy but secure process.

  • If you're married, your spouse will confirm your decision to opt for a loan amount.
  • In Turkey, banks make agreements in your language. The language barrier summons more complexities. If you are French, you will have a deal in the French language in a Bursa back.
  • One has to apply before three or two months for a loan. Otherwise, they will not get the loan permitted. This regulation is specially made, considering a sudden crunch in economics.

Once you have gone through this lengthy procedure, the bank will evaluate your property. As it has already been said that the bank will sanction the loan amount according to their valuation. Once the valuation and investigation process is done, the bank will bind your appeal as a final one.

Here, you need the help of a lawyer. He guides you through all the legal complications and finally enables your property for a deed of sale. At the Tapu Ofis, in front of a government office, you sign the deed of sale, and your amount is transferred to the seller. Finally, the real estate Turkey is yours.

Repaying A Loan

Repaying a loan is more comfortable than getting one. After you purchase a property İstanbul, you need to repay the debt using a bank account in the county. Usually, the charge is made in the same bank. Here, you deposit money from your home country. The account must be an active one. But there is no compulsion in having an account in Turkish bank. You can repay the debt directly from the bank account of your home country. But it's not recommended as it creates unprecedented troubles.

To buy a Property Bursa, the loan must have a tenure of 36 months. Turkish government has decided this tenure. Any loan amount sanctioned with lesser tenure will have a 1% fine. If the term is more than 36 months, it will receive a penalty of 2%.

So, this is the entire process of receiving a loan in Turkey for property. Minor changes keep occurring in the policy now and then. But abiding by this guide, you can easily be eligible for your desired amount of loan in Bursa, Turkey.

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