Turkish bank Deniz started issuing mortgages in 2024

On January 26, 2024, one of the largest banks in Turkey, Deniz, announced an important decision – providing housing loans to foreigners. This event arouses interest in the tourist community and has an impact on the real estate market in the country.

Now foreigners can get a mortgage for the purchase of housing in new buildings that have already been commissioned. This offer provides an opportunity to diversify the investment strategies of foreign buyers.

The loan terms include a term of up to 5 years and a monthly interest rate of 1.25% for mortgages issued in dollars and euros. The loan amount is limited to half of the estimated value of the property.

This change in the bank's policy brings new prospects for foreign investors, previously limited by interest-free installments from developers. However, the new conditions also entail more stringent requirements, including a ban on using mortgages to purchase housing from owners and a shortened loan term.

Anastasia Kezik, Marketing Director of Alanya Property Sales, notes that the new offer from Deniz Bank may cause changes in the dynamics of real estate prices. However, she expresses doubts about the widespread interest in the new mortgage program due to the relatively high interest rate of 15% per annum in foreign currency.

An approximate calculation of the mortgage for an apartment worth 100,000 euros shows that the initial payment will be 60,000 euros, the loan amount is 40,000 euros, the monthly payment is 950 euros, and the overpayment for 5 years is 17,000 euros.

The reaction of realtors to the new mortgage conditions is diverse. Some express concerns about restrictions, while others point to more flexible conditions provided by some developers.

Experts expect that Deniz Bank's new offer will affect the real estate market, attracting the attention of foreign investors. However, it is important to carefully weigh the pros and cons before deciding to take out a mortgage.

Frequently asked questions about the new mortgage program include requests for necessary documents, the possibility of using a loan for secondary housing, the chances of approving applications with a bad credit history, early repayment conditions and alternative offers from other banks in the mortgage market in Turkey.

The new offer from Deniz Bank creates additional opportunities for foreign investors in the Turkish real estate market. The future of this mortgage program remains in doubt, but it is certainly becoming a significant event in the field of Turkish real estate.