Some Turkish banks lend to foreigners, up to about 70% of the value and in lira. The catch is the interest rate and the lira itself. How the loan works, what it costs, and the alternatives.
Turkey is a popular market for foreign buyers, but financing it with a local mortgage is a different proposition from financing a purchase in the euro area. Turkish banks do lend to foreigners, mostly in lira and at high nominal rates. Our general guide to mortgages for non-residents covers the basics across countries; this one goes deeper on Turkey. The figures below are indicative, taken from 2025–2026 sources of mixed quality, and we flag where they disagree.
Who lends and how much
- Banks named as accepting foreign applicants include Denizbank, İşbank, Garanti, Akbank and HSBC, though one source stresses that not all of them offer non-resident mortgages. A marketing-led guide says Turkish banks have resumed home loans to foreign investors after a pause. We could not confirm the scale of this from an independent source.
- Loan-to-value for foreigners is commonly put at up to about 70% of the value, with another guide giving a 50–75% range. That means a deposit of roughly 25–50%.
- The regulator, BDDK, set new ceilings in a decision of 29 January 2026 (No. 11364), reported to range from 90% for homes up to 5 million lira down to 20–40% above 20 million lira, and to drop the old split between new and resale homes. Press coverage of the decision does not mention foreigners, so banks may apply lower limits to them.
- Borrowers should not be over 70 at the end of the term, per one source, and lenders cap payments against income.
Rates and currency risk
- Loans are generally in Turkish lira. Some marketing material mentions dollar financing, but we found no verified source, so ask any bank whether foreign-currency loans are available to you.
- A December 2025 source cited an average mortgage rate of 43.2% a year as of September 2025.
- Turkish press in July 2026 quoted housing-loan rates per month: an average of about 1.95%, from 1.49% at the cheapest to 2.58% at the highest. Simply multiplied by twelve, that is roughly 18–31% a year. These quotes are for the domestic market, and a foreigner may be offered something different.
- A lira loan is repaid in a currency that has been weakening, and our comparison guide cites annual inflation of about 32% in July 2026. If your income is in euro or dollars, the lira loan can be cheaper in your currency than the headline rate suggests, but it is still a large nominal payment and a currency bet. Compare it with borrowing in your own currency.
What the bank will ask for
- Passport and a Turkish tax number, which is mandatory. A foreigner identification number beginning with 99 is used for banking.
- A Turkish bank account. Some banks also want a residence permit.
- Proof of income, with bank statements for the past three to six months.
- The title deed or purchase contract. One source says documents must be translated and notarised.
- A valuation report. Valuation by a licensed firm is required by law, and one source puts the cost at 2,000–5,000 lira.
What you pay on top of the deposit
- Title deed fee: 4% of the declared value, normally split between buyer and seller and negotiable, per our new-build and resale guide.
- Compulsory DASK earthquake insurance at transfer.
- Loan costs reported by one source: stamp tax of 0.948%, application fees of 0.5–2% of the loan and mortgage registration of 0.5–1%. We could not verify these against a bank, so ask for the total cost in writing.
Pitfalls to avoid
- Underestimating currency risk. Rates, inflation and the exchange rate all move, so test the payment under a weaker lira.
- Paying for an off-plan property before the deed or the building's status is clear, which our new-build guide covers.
- Pledging a property you plan to use for citizenship by investment without asking a lawyer how the loan interacts with the registered value and the three-year sale restriction.
- Valuation below the price, which leaves you covering the gap.
- Signing before you have a written, itemised offer.
Alternatives to a Turkish mortgage
- Cash, still how most foreign purchases are completed.
- Borrowing in your home country, which avoids lira rates.
- Developer instalment plans on new builds. Terms depend on the developer, so read the contract and check the project before paying.
FAQ
Can a foreigner get a mortgage in Turkey? Yes, from some banks, but it is not universal and terms vary. How much do they lend? Commonly up to about 70% of the value. In what currency? Mostly lira. What is the interest rate? Quotes differ widely by source and date, so get a written offer. Do I need a Turkish bank account and tax number? Yes. Is a valuation required? Yes, by law.
How we help
We connect buyers with brokers and banks that lend to non-residents and structure the purchase around realistic financing. This is general information, not financial, tax or legal advice: rates, LTV limits and fees change and differ by lender, so confirm current terms with a licensed broker and a Turkish lawyer before committing.