Retail Banking

Residence Financing
Residence Financing
Residence Financing
Residence Financing

Albaraka Turk will always be there to help you achieve your dream of buying your own home where you can build your future. Owning a home can be as easy as paying rent with our long-term financing tailored for your income.

Residence Financing
Features
Necessary Documents
F.A.Qs
Residence Financing
Features

Features:

  • Customers who meet the necessary credit and income requirements can take advantage of home financing from Albaraka. 
  • You can pay your installments on a home within a 120 month term; you also have the option of paying bi-monthly, quarterly or with other flexible terms. With Albaraka, you can arrange a payment plan financially convenient for you. 
  • There are no restrictions on the maturity of the building or home when financing. 
  • Financing is available for up to 75 % of the appraised value of the home you are looking to purchase. (appraisals will be made by an authorized company contracted by Albaraka) 
  • In order to protect your home, you can also apply for real estate insurance or compulsory earthquake insurance at Albaraka. 
  • For more information, please contact our 24-Hour call center at 444 5 666. 

 

(*) KKDF and BSMV rates are not taken in individual home financing.

Necessary Documents

Required Documents** for Individual Applications

  • Turkish Identification Card 
  • Residence Document 
  • Income Documents 
    • For salaried employees:  Most recent pay roll information on company letterhead with authorized signatures from your company or a signed and sealed company letter with authorized signatures. 
    • For the self-employed: A copy of your tax certificate, Trade Registry Gazette information, authorized signatures, financial statements and income tables for last three years approved by Tax Office or Certified Financial Consultant, current year balance sheet, and an activity certificate or registration certificate from the Chamber of Merchants and Craftsmen.  
  • Copies of deeds, rent contracts, and other property or income documents (if applicable)  
  • Notarized Signature Document 
  • Copy of deed for the real estate to be purchased.
  • For the evaluation of financing applications, two persons must be willing to act as guarantors. The same documents should be prepared for your guarantors. Additional documents and information may be requested.  

 

Required Documents** for Corporate Application

  • Turkish Identification Cards of Partners 
  • Residence Documents of Partners 
  • Notarized Signature Document
  • Trade Registry Gazette information
  • Chamber Registration Certificate
  •  Financial Statements and income tables (last three years)  
  • Copies of Tax Certificate (last three years)  
  • Copy of deed for the real estate to be purchased.  
  • For the evaluation of financing applications, two persons must be willing to act as guarantors. The same documents should be prepared for your guarantors. Additional documents and information may be requested.  

 

**Photocopies of all documents are required.  

 

What is mortgage?

Mortgage is a long-term home financing system practiced in many countries throughout the world. Mortgages enable individuals to buy what they need faster than through investment. Thus, banks and other home financing corporations avoid the risk of maturity discrepancy and enable home financing with long terms and low rates.

What are the benefits of a mortgage?

The main advantage with the mortgage system is that consumers are able to use their home credits for longer terms and pay lower rates. In addition, tax exemptions on mortgages decrease the total cost to the consumer by lowering the tax burden on their debts.

What kind of real estate may be purchased through a mortgage?

A mortgage applies to real estate bought by the consumer for habitation.  Real estate that is registered as a home, apartment, or villa can be covered by a mortgage. However, real estates cannot be bought through a mortgage by a legal person (corporation). Under Law No. 5582 consumers may apply for:

a- credit for purchasing a home, 
b- credit for financial renting,
c- credit for mortgaging their own real estate. 

The loans mentioned above may be re-financed through a mortgage.

Are offices, stores or lands included in the mortgage system?

No. Offices, lands and stores are not included in the mortgage system.

 

What tax exemptions are offered for mortgages?

The Banking and Insurance Transactions Tax (BITT) on the capital amount in mortgages (5 %) is not collected. In addition, the filing fee, commission, expertise fee, early closure fee, and other fees will not be applicable on a consumer mortgage. The BITT does not apply to the insurance premiums that result from insurance policies such as NDIA, fire insurance, home-owner insurance or life insurance on the mortgaged property as well. Mortgage transactions carried out in the Deed Office will also be excluded from taxes, duties and fees.

How are profit and interest rates determined in a mortgage?

In accordance with Law No. 5582, which is also known as the Mortgage Law, there are no specified arrangements on how interest rates and profits are determined. These rates will be specified by banks and financial institutions. Even before Law No. 5582 came into effect, profit and interest rates applied to housing credits were determined at the discretion of the bank. Since Albaraka is an interest-free financial institution, rates in mortgages are always fixed.

According to the mortgage law, which corporations can offer consumer mortgage loans?

In accordance with Law No. 5582 the corporations that can offer mortgage loans are banks, participation banks along with financial leasing corporations and consumer financial corporations approved by the BDDK.

I would like to take a loan from your bank in order to buy a house, but I do not want this loan to be a mortgage; Is this possible?

No, in accordance with Law No. 5582, all home loans must be taken in the form of a mortgage.

How does the new law affect the evaluation of loan applications?

According to the law, the evaluation of loan applications will be conducted by SPK licensed experts. This arrangement will result in an increase in expert fees paid by our customers. After a home finance credit application has been approved by the bank, a pre-agreement information form will be provided to the applicant. The applicant has one day to closely read the form, which includes information on conditions related to the credit, warnings, installment plan, and interest/profit percentages before signing the agreement.

I have a house that is registered in my name. Now I want to buy another house. Can I received credit for this house in the form of a mortgage?

Yes. There is no limit to the number of the houses an individual may purchase, so you may finance your next home with a mortgage.

If I want to pay off my mortgage completely before the previously agreed date, will I have to pay an early closure fee?

If your mortgage is a fixed rate loan, an early closure fee may apply, which is generally 2 % of your total account. However, if you have a flexible interest loan, this fee will be waived.

Will the interest/profit rate determined beforehand change in accordance with market conditions?

Credit rates can be either fixed or flexible according to the agreement with your bank. Fixed-rates will not change regardless of market conditions. However, flexible rates will be revised according to indices determined by the TCMB. The index used is determined between you and your bank. If you opt for fixed rates you will not be affected by market fluctuations. At Albaraka, we only offer fixed rates.

What are the documents required when applying for a mortgage through Albaraka?

 

  • Personal Financing Application Form (to be filled out at branch)
  • Turkish Identification Card 
  • Residence Document 
  • Income Document 
  • For salaried employees:  Most recent pay roll information on company letterhead with authorized signatures from your company or a signed and sealed company letter with authorized signatures. 
  • For the self-employed: A copy of your tax certificate, Trade Registry Gazette information, authorized signatures, financial statements and income tables for last three years approved by Tax Office or Certified Financial Consultant, current year balance sheet, and an activity certificate or registration certificate from the Chamber of Merchants and Craftsmen.  
  • Copies of deeds, rent contracts, and other property or income documents (if applicable)  Notarized signature document Copy of deed for the real estate to be purchased. 
  • For the evaluation of financing applications, two persons must be willing to act as guarantors. The same documents should be prepared for your guarantors. Additional documents and information may be requested.  

 

**Photocopies of all documents are required.

 

How should I insure the credit I receive from my mortgage?

DASK (mandatory earthquake insurance) and homeowner insurance are the two required insurances for a mortgage.

What will happen in the case of execution proceedings for debt on the mortgage?

Previously, Banks were only able to seize properties taken as collateral/security in order to collect the unpaid balance on the loan. However, with new procedures aimed at advancing the collection process, Banks are allowed to do execution proceedings on other properties of the debtor; not just limited to the property being financed.

Does Albaraka offer variable rate loans?

No, variable rate loans are not be available on mortgages through Albaraka. Home financing loans at Albaraka are fixed rate installment plans.

What is the best payment plan for me? How long should I make payments for? How much should my payments be?

There is no one plan for everyone; the best plan for potential home financing consumers is determined by considering each customer’s income and situation. Your monthly income may consist of income of other family members or commercial profits (such as rent). So the ideal loan plan will be one in which your monthly payments do not exceed half of your monthly income.

Can I use a mortgage loan to build my house?

Yes, you can use another property you own to put up as collateral for financing, from a bank or financial institution, of a property under construction. Liens put on properties owned by third parties are not eligible for mortgage loans of properties under construction.

What kind of changes be there be on my current housing loan after the Mortgage Law (came into effect)?

 

If you did not petition for any change on your home loan taken before the Mortgage Law came into effect (06.03.2007) by the deadline of 06.06.2007, then the changes within the Mortgage Law will affect your home loan.

Customers with current home loans will not be required to pay the 5% Banking and Insurance Transaction Tax (BSMV) which was paid through your loan interest/profit share. Insurance policies on home loans will be exempt from the Banking and Insurance Tax.

There will be no changes in your rate, you will not be charged any additional fees or commissions and you are not limited to putting a lien on the property you are mortgaging (you may put liens on other properties you own).

 

Is the property, which has an occupancy permit, required by law to have a residential usage license when taking on a mortgage?

 

No, there is no such requirement stipulated by law. But as a precaution, Albaraka only finances properties which are registered and have residential usage licenses to use as collateral/security.

What are the features of home financing available from Albaraka?

For the purchases of Condominiums or construction servitudes, mortgage loans are available for up to 120 months with varying payment options including monthly, bi-monthly or quarterly payments. This way, you can arrange your payment installments according to what is financially convenient to you. There is not limit on the age of the building being purchased. Financing is available for up to 75 % of the appraised value of the home or office you are looking to purchase (appraisals will be made by an authorized independent company contracted by Albaraka). You can receive financing for up to 70 percent of the appraised amount of the home or office you are purchasing.the condition  ,relevant under secretariat. At the presentthe by determined  will be shaped according to the arrangements will be done s. Therefore, the insurance matterfor mortgages and principles of insurance policies which will bw arranged within Mortgage contextsthe procedureto determine  is authorized about ,ministryMprime under the P of TC ,treasuryTTurkish the stated that only t is Iicredits using as Mortgage. mortgage insurances are required for the the kinds of which on 5582 about Law No.  the law numbered in ationsno specificnot any arrangement are There is DASK (mandatory earthquake insurance) and homeowner insurance (the two required insurances) are done on all residences mortgaged through Albaraka. For reliable services and reasonable quotes on these insurance policies, please visit any Albaraka branch. For more information and answers to all your questions regarding mortgage loans, please contact our 24 hour call center at 444 5 666..made compulsorybe compulsorymay insurances can forms of other or arrangements will be done life insurance and future the under  as we mentioned above, according to. Howevercontinueour customers will go onfor of real assets’ insurance asking from requirement the compulsory.