Turkey: Finance / Mortgages
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Maximum LTV (loan to valuation) |
80% |
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Minimum loan/purchase price |
€ 25.000 |
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Maximum loan/purchase price |
€ 200.000 |
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Minimum term |
5 years |
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Maximum term |
20 years |
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Minimum age |
24 |
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Maximum age |
70 |
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Maximum no of applicants |
Standard 2 |
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Is there a redemption penalty for either full or part repayment? If yes, for what products and does the penalty differ per scheme? |
Yearly 10% of the existing loan can be redeemed without a penalty. Above 10% the penalty is based on the actual market interest rate versus agreed %. |
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Fees due and when payable (valuation/arrangement/processing etc) |
€ 300 - for appraisal at application stage 2% with min. € 1.250 closing fee |
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How is interest calculated? |
Monthly in arrears |
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Can clients rent property? – If yes will rental income be taken into account in affordability? |
Yes, in that case buy-to-let interest rise of 0.6% |
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Remortgages? For equity release or home improvements – does property need to be unencumbered?
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Yes. In principle ‘yes' but this will be decided case by case depending on the client's profile and appraised real estate value |
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Home Improvement Loans? – Does property need to be unencumbered?
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Yes. In principle ‘yes' but this will be decided case by case depending on the client's profile and appraised real estate value |
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How is the mortgage repaid – do clients have to have a bank account with lender?
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Customers gives power of attorney to DHB Bank for automatic debit from salary bank of the customer |
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Can an Agreement in Principle be obtained before finding a property – if yes, how long are they valid for? |
No, because the application process (and decision for loan offer) is also based on the appraisal of real estate (execution value) |
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Buildings insurance compulsory? If yes, how much does it cost?
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Yes, costs depending on value and risk level of real estate DASK House damage insurance Eg: If the rebuilding value of the house is 60,000 Euro. DASK premium is 60 Euro, Damage Insurance premium is 120 Euro. These premiums are per year. |
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Life insurance compulsory? If yes, how much does it cost?
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Yes, Till age 60 = 55% life insurance of loan amount From 60 = 75% life risk insurance of loan amount |
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Does client need to be present on completion or can a representative act on their behalf with POA? |
POA is possible |
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Timescale and processes for the application
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The process partly relies on third parties. When everything runs smoothly, the total process will be realised within approximately three weeks'. |
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Documents required for employed – original or copies? |
Employed: Employer's agreement Two salary slips Self employed Last three years' balances with profit |
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% of bonus/commission payments if guaranteed or not – is track record required? |
Standard, last three years' average but never more than last year |
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Documents required for self- employed (T/A or limited company) – original or copies? |
Last three years' profitable balances Chamber of commerce document Identity documents Copies from original (seen by ourselves or cooperating partners) |
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If 20% shareholder of limited company what income will be taken into account – salary/dividend/profit etc? |
Always official salary/income due to activities in the company Dividend or rent income is not taken into account |
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Can loans be arranged in the name of a limited company? |
No, only private individuals |
