Payment by installments from the developer is a popular type of lending of foreign citizens in Turkey. Real estate buyers are often not able to quickly gather a big amount of money to pay for a property they purchase, or they do not want to spend all the savings at once. In this case, Turkish real estate developers often meet buyers’ needs by providing payment by installments for up to 5 years.
On what conditions is payment deferment provided?
A buyer must make an initial payment of 40% of the transaction value.
For the remaining 60% of the required amount the developer provides deferment from 1 year to 5 years.
As a rule, the deferment for 1 year is interest-free.
In case of a deferment for a period of 2 and more years, the rate of the loan is negotiated with the developer and fixed in the contract of sale. Usually in such cases the rate of the loan is lower than the current mortgage rate adopted in Turkey for the currency in which the contract was signed.
When paying with a deferment, the buyer becomes the full owner of the real property only after the full payment of the entire amount for the real property.
Unlike a mortgage, when signing a contract with deferred payment, no additional proofs of income and no guarantors will be required from you. Also, there are no additional charges for the formalities.