Mortgage Products and General Terms

Participating banks

Currently, the following banks offer mortgage financing for foreigners in Turkey:

· Denizbank

· Garanti Bank

· Akbank

· HSBC

General Terms of Mortgage Loans

Interest rate

Competitive interest rates (in Euro) for mortgage loans for foreign clients are currently as low as 6.96% annual (0.58% monthly). Rates are typically fixed.

LTV (Loan-to-Value) ratio

Maximum LTV ratios for mortgage loans for foreigners range from 50% to 75%.

Repayment Term

Repayment terms currently extend up to 20 years (240 months).

Standard Fees

Fees, generally payable at closing, vary by bank. Here are some mandatory fees to consider when taking a mortgage in Turkey:

· Up-front fee (also referred to as loan application fee, loan processing fee, booking/credit report fee, etc.)

· Appraisal fee (also referred to as valuation fee or expertise fee)-- usually performed by the bank's qualified appraiser.

· Life insurance (sometimes not mandatory)

· Home insurance

· Mandatory earthquake insurance (DASK)-- Premium amount changes according to variables such as the location, structure and square meter area of the house

· Early repayment penalty fee (typically 2% of payment amount).

APR Comparison

Bank	APR	Max LTV ratio	Monthly interest rate	Monthly payment	Early repayment penalty
Denizbank	7,58%	65%	0,58%	2 897,56	2,00%
Akbank	8,14%	50%	0,60%	2 928,55	2,00%
Garanti	8,34%	50%	0,65%	3 006,83	2,00%
HSBC	8,81%	50%	0,65%	3 006,83	2,00%

* Loan amount: 250,000 Euro; Repayment term: 10 years

** Standard rates and requirements—terms may vary based on an individual's qualifications.

Required Documents

Required application documentation also vary by bank. Here is a sample list of documents that may be required:

· Signed bank application form

· Copy of passport or applicable identification

· Tax ID card (for Turkish citizen representing the borrower)

· Personal income and/or tax statement (e.g. P60)

· Notarized employer income statement

· Recent bank statements

· Credit Bureau record from applicant's home country

· Overview of private assets (e.g. real estate, financial securities)

· Overview of monthly debt obligations (e.g. rent, credit cards, alimony)

· Document proving the address of the borrower (e.g. telephone or utility bill in borrower's name)

· Photocopy of the deed of the property that is to be purchased (obtained from the local deed office).

· Trade registry gazette for self-employed business owners

Documentation of supplementary income such as rental income or income from financial assets

1.	FinZoom client questionnaire	Filled and submitted online. Mortgage consultant will call you within 24 hours of submittal.
2.	Meet with FinZoom Mortgage Consultant	Initial meeting for needs assessment.
3.	Product Recommendation	Mortgage broker presents client with up to three qualified offers.
4.	Preliminary bank application.	Make initial application to selected bank.
5.	Receive preliminary approval	Approval is typically within 3-4 days of submitting application.
6.	Preliminary contract for property purchase	Based on mortgage approval, client should proceed with real estate contract.
7.	Approval from Ministry of Defense
8.	Document preparation	Gather and organize all necessary documentation for the mortgage loan.
9.	Property appraisal	A bank-certified appraiser must assess the fair market value of the property that will serve as the security for the loan.
10.	Final approval from bank	After all necessary documents have been received and reviewed by the bank, the bank executes final approval for the mortgage.
11.	Mortgage signing	The bank prepares a mortgage loan contract, which is signed by the customer (or his/her agent) and the bank.
12.	Transfer of property title, notarized deed - closing	Bank, Buyer and Seller must meet at a Notary, where formal transfer of the property title is transferred from the Seller to the Buyer.
13.	Transfer of amounts	Bank transfers the loan amount to the Seller.