Turkey · Money and mortgage
How to compare banks and choose a mortgage rate in Turkey
Beyond the advertised rate: state support programmes, arrangement costs, approval speed and refinancing potential when choosing a mortgage bank in Turkey.
Most people compare banks only by the advertised interest rate. But that is only one dimension of the credit experience. Approval speed, approval criteria, mandatory bundled products, the quality of customer service and the possibility of future refinancing are no less important. This guide makes the comparison systematic.
§ 01
Look beyond the advertised rate
- 01Compare by YMO, not the nominal rate
YMO (annual cost of credit, yıllık maliyet oranı) is a legally required disclosure that includes all mandatory costs. A bank with a nominal rate of 2.50% can be more expensive on a YMO basis than a bank with 2.30%. Always ask for the YMO in writing.
- 02Compare the file-opening fee and valuation
The fee and the valuation charge differ between banks. The amounts are small, but they are paid even if you are turned down — so clarify before applying. As part of promotions, some banks waive these costs.
- 03Find out what's in the mandatory product bundle
Some banks make approval conditional on opening a salary account, taking out a credit card or buying their insurance. Calculate the real cost of the bundle. Sometimes it is offset by a lower rate — more often it isn't.
§ 02
State programmes and special conditions
- 01Study state-bank programmes
Turkey's state banks periodically launch preferential programmes with low rates, long terms or specifically for primary housing. The conditions (income caps, property value) change — check the current ones before applying.
- 02Evaluate TOKİ and social-housing projects
TOKİ and similar state programmes offer housing for specific income groups with subsidised financing. The advantage is not only the price but also the long term and low rate. Study the conditions, hand-over dates and locations; compare with market alternatives.
- 03Find out about your employer's corporate arrangements
Large state or private companies may have arrangements with banks for preferential rates for employees. Check with HR or the finance department — such protocols exist more often than people think.
§ 03
Documents and the approval process
- 01Understand which documents are critical
Banks require a standard pack: income certificate, tax documents, tapu extract, ID. For the self-employed or people with irregular income the requirements may be stricter. Find out in advance which bank fits your profile.
- 02Ask about the approval period
Some banks give pre-approval in 2–3 business days; others take up to 2 weeks. If the seller is putting pressure on time, speed is an important criterion. Clarify the difference between pre-approval and final approval.
- 03Evaluate the quality of customer service
In a relationship that lasts decades, what matters is the convenience of the app, the availability of the call centre, the load on branches. Check user reviews. How accessible the credit officer is becomes obvious at the very first meeting.
§ 04
Refinancing and the long view
- 01Keep refinancing in mind
If market rates fall in future, refinancing at the same or another bank will deliver meaningful savings. The conditions that make this possible (no early-repayment penalty, the right to transfer to another bank) are set in the first contract.
- 02Calculate the cost of switching banks
If, during repayment, you find a better offer, switching banks has a price: the early-repayment penalty, the new fee, the new valuation. Compare those costs against the interest savings over the remaining term — and that is your decision.
⚠ This material is for informational purposes only and does not replace legal advice. For major transactions always work with a qualified specialist in your country.