By Majlinda BEU
Mortgage system is now applicable in Turkey since last year. Now the availability of mortgage loan by banks is not only practical for real estate acquisitions by Turkish citizens but by the foreigners as well. This is one of the advantages regulated by Turkish Mortgage Law. However, in practice is not seemed as much easy as legally. Regarding this issue bank directors in Turkey are claiming that even though there is a legal regulation for mortgage loans for foreigners still there procedures such as military permits which hang up acquisition transactions. The a.m. permits are practiced in accordance with 2565 numbered Law of Military Forbidden and Security Zones. These permits should be provided for villa type’s acquisition transactions by foreigners at zones such Fethiye, Bodrum, Antalya, Marmaris etc. Moreover, the military permits should be issued by military authorities and this procedure takes time aprox. 4 – 5 months.
For mortgage loan transactions, Garanti Bank makes agreements with loan offices in UK. However, the foresaid military permit hangs up all these transactions. Consequently, in order to increase the foreigners’ real estate acquisitions in Turkey, such permit should be annulled or at least the obtaining period of this permit should be decreased.
Meanwhile, in Turkey except Garanti Bank, Iş Bank and Denizbank provide mortgage loans for foreigners. However this is not enough if we have a look at foreigners acquisitions in Spain such as 2,5 million and in Turkey only 40 thousands.
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