Mortgage

Loans can be offered provided that they have an easement title deed and 75% of the property is completed.

Common documents for real persons:

• Photocopy of identity card (front and back)
• Certificate of residency, or paid telephone (except mobile phone), water, electricity, or natural gas bill, issued within the last 3 months.
• Photocopy of the title deed of the real estate to be purchased/liened.
• In addition to these documents, the documents below are also required based on the form of employment:

Salaried employees:

• Photocopy of the payroll slip for the last month or salary letter.
• Signatory circular of the company employed for, if a salary letter is submitted.

Pensioners:

• Identification document issued by the relevant social security institution.
• Photocopy of bank passbook documenting income.

Self-employed persons:

• Photocopy of the tax registration certificate for the last year.
• Account status for the last year certified by the tax office.
• Company partners:

Company partners:

• Notarized signatory circular for the recent year.
• Photocopy of the tax registration certificate for the recent year.
• Certified balance sheets and income statements for the last 3 years and trial balance for the last month.
• Trade Registry Gazette containing the capital partnership structure and the articles of incorporation.

Farmers:

• Farming Document

Mortgage means a long-term home loan secured by a lien on the real estate, and it is one of the financing methods widely used in the world for real estate purchases. The system is based on financial institutions established for this purpose, particularly banks, providing loans with long terms such as 30 years against a lien on the real estate.

You may have taken out your existing mortgage in USD, EUR or another currency, however you may no longer want to undertake the exchange rate risk of your loan. In such case, your can convert the currency to TL when transferring your mortgage.

Housing finance companies will have CMB's licensed experts to carry out the valuation of the properties to be purchased.

The first aspect that needs to be considered is the determination of the ability to pay. Since the terms are long in the system, the consumer must have a permanent and regular income throughout the term. Another important aspect is the selection of the type of the loan. While the installment amount will remain fixed throughout the term in fixed rate loans, the installment amount will change according to the index in index-based variable rate loans.

Providing consumers with loans for the purchase of a property, financial leasing of a property to the consumers, providing consumers with loans through the collateral of the property they own, and providing consumers with loans to refinance their existing loans are within the scope of housing finance. Properties in the construction phase are also included in the system. However, since properties that have an occupancy permit will be needed for the securitization transactions of the housing finance companies, these types of loans and loans provided to finished properties with easement title deeds cannot be securitized within the scope of the law.

Whether or not refinancing your existing mortgage is advantageous for you will be determined by the terms of your existing mortgage and the market conditions.
You should take into consideration the factors below.

• The remaining principal of your mortgage
• The current interest rate of your mortgage
• The remaining term of your mortgage
• Whether or not you will have to pay an “Early Payment Fee” when closing your existing mortgage (In accordance with the Mortgage Law No. 5582, in the case that the fixed rate mortgages issued after March 6, 2007 are closed early, the institution issuing the mortgage may demand an early payment fee up to 2% of the remaining principal amount)
• Whether or not you will have to pay certain fees such as the lien release fee when closing your existing mortgage
• Whether or not you will have to pay filing fee, appraisal fee, lien fee, insurance fee and similar fees.

Mortgage interest rates may have fallen in line with the improvements in the financial markets and your mortgage interest rate may now be too high compared to the current market interest rates. In such case, you can lower the interest rate when transferring your mortgage.

You can shorten or extend the term of your existing mortgage as you like according to the monthly installment amount you can pay.

When transferring your mortgage, you can decrease your installments to suit your current budget, or increase them to pay off your debt in a shorter period of time.

If you think that the mortgage you have taken out is no longer advantageous for your with the changing of the market conditions or your own conditions, you can transfer your mortgage.