help & support

Most frequently asked questions about StartKredi

What is StartKredi?

StartKredi is the clever new way of selecting and closing your mortgage. The idea is very simple:

We don’t act as a lender but select the best mortgage for our customers among offers from multiple banks competing for your business.

We request banks to provide us an offer for you within 48 hours, free of charge based on your mortgage application which has been filed online.

How does it work?

Before a bank provides an offer, we need to following to determine the details:

  • How much you want to loan.

  • Property details.

  • Your current financial budget.

StartKredi asks you to provide this information via our mortgage application in only 3 clicks which takes about 5 minutes to complete.

After we have received your application we let the banks compete for your business, we select the best mortgage offer to meet your specific needs and provide it to you without any obligation.

Do you like the offer received? Then you just simply sign the document and send it back to us, we do the rest.

In case you received a better offer not via us, please inform. We will evaluate free of charge if the offer is good for your financial situation.

How does StartKredi provide the best rates?

StartKredi offers rates obtained directly from general management leading to special rates for our customers. 

How long does it take?

Dependent on your financial request we aim to provide a proposal within 48 hours after our first personal contact (telephone/personal meeting).

Why make use of StartKredi?

When applying for a mortgage you will be asked a range of questions about the type of mortgage you want, whether it is appropriate for you and how long your mortgage should last. Depending on your answers, StartKredi will only be able to recommend a mortgage that meets your needs and circumstances. Following our advice will almost certainly be the best for you unless you are confident and competent in financial matters.

We provide you free of charge the following services:

  • Easy and transparent process; fill in the application form, we do the rest

  • We have access to multiple banks, we invest the research time, not you

  • When you have questions, a dedicated StartKredi mortgage expert is available, free of charge

  • We help you obtain a realistic request; it’s important to be sure you can afford your mortgage now and if things change – if you fail to keep up repayments you could lose your home

Who can make use of StartKredi?

Everybody currently living in Turkey or interested in moving to Turkey. We make no exceptions and will provide our services to every person who wants to buy a house in Turkey.

How does StartKredi make money?

Our source of income comes from the commission that the StartKredi receives from the various banks for every mortgage successfully brokered. These commissions are paid to StartKredi as a single payment for the completion of a loan contract.

How safe is StartKredi?

Protecting and safeguarding your personal information is as important to you as for us. 

Our application platform is protected by industry standards HTTPS encryption. All of the communication is encrypted with latest standards.

We use trusted European servers for storing and encrypting your information provided and more importantly make sure that only StartKredi has access to the database and client information. 

We have a specialized team who are regularly trained and review processes to make sure that we are secured against the latest threats. 

To sum up, it could not be any safer.

Most frequently asked questions about Mortgages

What is a mortgage?

A mortgage is a loan taken out to buy property. The loan is ’secured’ against the property, which means that if you fail to keep up the repayments on the mortgage the lender could take back your home and sell it to repay what you owe. Most mortgages run for 10 years but the term can be shorter or longer.

How does it work?

Almost all mortgage products require you to put down some money of your own – called a deposit. Most banks require a down payment of 25% of the value of the house. The mortgage that makes up the difference is expressed as the percentage ‘loan-to-value’ or LTV and is expressed as a percentage of the value of the property.

Example

If you put down a 10.000 TL deposit on a 100.000 TL property, the deposit would be 10% of the purchase price and the mortgage loan-to-value would be 90%.

In general, the higher the deposit you can save, the lower the mortgage interest rate you’ll be offered.

How we help:

  • The website automatically asks for an LtV in order to calculate the best rate for you. 

How do you repay a mortgage?

A mortgage has two parts:

  • The capital, which is the money you borrow, and

  • The interest, which is the charge made by the lender until the loan is paid back.

When you take out a mortgage you will decide how you will pay it back. This can be either via repayment (capital plus interest), interest-only or a combination of the two. With an interest-only mortgage you have to be able to show how you will repay the capital at the end of the term.

How we help : 

  • Your mortgage consultant is available to explain you the exact details. The exact recommended construction depends on your own financial situation and risk appetite.

How do banks assess what mortgage you can afford?

When you apply for a mortgage the banks must assess what level of mortgage payment you can afford, taking into account your personal expenses as well as your income.

The amount you can borrow is based on an affordability assessment rather than on a multiple of your income.

The bank will also look ahead and 'stress test' your ability to repay the mortgage. This includes taking into account the impact of future interest rate rises and expected changes to your lifestyle which you must tell them about. For example, plans to have a baby or take a career break. The lender might restrict how much you can borrow if it looks as if you wouldn’t be able to afford the mortgage under these circumstances.

So before you apply for a mortgage it’s a good idea to do your calculations and work out what you can truly afford.

How we help:

  • We ask you to provide your net income and advice you to stay with a 35% range.
  • This 35% is based on best practices in banking sector. 

Mortgage affordability – what you need to take into account

Although mortgage affordability calculations vary between lenders they all look at the following expenses after taking into account your income:

  • Credit cards

  • Other loans or credit agreements you may have

  • Dependents, and

  • Maintenance payments.

They will also take into account the likely cost of monthly and annual bills such as:

  • Council Tax

  • Water rates, gas and electricity

  • phone and broadband, and

  • Insurance.

You also need to think about how you would meet your repayments if:

  • interest rates increased

  • you or your partner lost your job

  • you couldn’t work due to illness

To protect yourself against a future unexpected drop in income, aim to build up an emergency fund – ideally equivalent to three months’ outgoings.

It’s also worth checking what your employer provides if you become ill or had an accident which stopped you working for a while.

How we help:

  • Our mortgage expert can calculate your risk and advice how to plan accordingly.

What is the true cost of obtaining a mortgage?

Mortgage repayments aren’t the only cost to think about when buying a property. Most mortgages also come with arrangement and/or booking fees. These can be added to the loan, but will cost you more in the long run as you'll be paying interest on them.

You also need to factor in your deposit, legal and valuation fees, Stamp Duty where the property purchase price is above a certain level, building insurance and removal costs. 

How we help:

  • A mortgage has various cost but we can simply divide them into three main costs.
  • First being the loan amount or also named the capital,
  • Second is the interest you pay on the capital,
  • Thirdly the origination fees which the bank asks for setting up the loan,
  • Beside these costs insurance for life and the home are required.
  • We have created a formula which contains weekly update estimates to provide you a first indication.

Why do interest rates change?

Interest is simply the cost of borrowing money. As with any good or service in a free market economy, price ultimately boils down to supply and demand. When demand is weak, lenders charge less to part with their cash; when demand is strong, they're able to boost the fee. Demand for loans ebbs and flows with the business cycle. During a recession, fewer people are looking for new mortgages or loans for their start-up businesses. Eager to increase lending, banks put their money "on sale" by dropping the rate.

You are from outside Turkey and want a loan, how to go about?

Foreign citizens or residents on the conditions of reciprocity with and paying obeisance to legal restrictions (the law on property purchase by foreigners in Turkey) are able to buy real estate in Turkey. 

As you can buy land and property in Turkey a non-Turkish citizen can also apply for a loan. There is no central regulation regarding the loans since each bank sets its own rules and regulations. The difference is the loan-to value ratio. The maximum loan-to-value ratio for EU member countries, Norway and Switzerland citizens is 65% of the appraised value of the property for other countries.

Besides this rule there can also be a maximum which you can loan. 

How we help:

  • We can learn the what applies to your specific case and provide you with all the details such as:
  • Loan-to-value ratio
  • Maximum loan amount
  • Needed documentation

Most frequently asked questions about Properties

Can I buy real estate in Turkey as a foreigner?

Yes, in accordance with the Article 35 of the Land Registry Law No. 2644, amended by Law No. 6302, which entered into force on 18 May 2012, the condition of reciprocity for foreigners who wish to buy property in Turkey is abolished.

Information on countries whose citizens can buy property and estate in Turkey can be provided from the Turkish Embassies/Consulates abroad and the General Directorate for Land Registry and Cadaster.

Persons with foreign nationality can buy any kind of property (house, business place, land, and field) within the legal restrictions. But persons with foreign nationality who buy property without construction (land, field) have to submit the project which they will construct on the property to the relevant Ministry within 2 years.

How we help:

  • We can help you with your search in property and a mortgage.

Are there any legal restriction for foreigners in buying property?

The government of Turkey has set the following restrictions:

  • Persons with foreign nationality can buy maximum 30 hectares of property in Turkey in total and can acquire limited in rem right.
  • Foreigners cannot acquire or rent property within military forbidden zones and security zones.
  • Persons with foreign nationality can acquire property or limited in rem right in a district/town up to 10 % of the total area of the said district/town.
  • The properties are subject to winding up provisions in following cases:
    • if the properties are acquired in violation of laws;
    • if the relevant Ministries and administrations identify that the properties are used in violation of purpose of purchase; 
    • if the foreigner does not apply to the relevant Ministry within time in case the property is acquired with a project commitment; 
    • if the projects are not materialized within time (2 years).

How we help:

  • We can obtain information for you if your interested property meets the regulations.

How are the prices in Turkey?

The value of the properties are increasing steadily since 2002. The recent economic crisis didn’t affect the Turkish housing market. The property value defers based on the location and the quality of the construction material, as well as its architectural characteristics. Transportation, economic activities in the region, and availability of necessary services are also factors that determine the value.

How is the format of the contract?

According to the Turkish laws and regulations in force, transfer of ownership of a property is only possible with an official deed and registry which is signed at the Land Registry Directorates.

It is possible to sign a “sales commitment agreement” before a notary. However, legal ownership to the property do not pass with a “sales commitment agreement” or other kind of sales agreements to be signed before the notary.

How we help:

  • We can provide legal assistance and support you during this process.

How can I issue a power of attorney?

There is a Notary Public in every town. It is normal practice to issue a Power of Attorney (POA) to the Solicitor, to enable them to follow and complete the purchase process on your behalf without the need for you to be present until a convenient time.

A POA can be issued abroad as well; usually Solicitors abroad have the authority to notarize the documents. The notarized POA should then be apostilled at the Local commonwealth Office or should be certified by the Turkish Consulate in order to be recognized as valid. Please note that a POA obtained from abroad and written in languages other than Turkish should be translated into Turkish Language and the Legal Translation approved by the notary in Turkey as well. Or you can directly contact the Turkish Consulate in order to prepare a legal POA.

How we help:

  • We can provide legal assistance and support you during this process.

Can I rent my property in Turkey to third parties?

Yes, but rent income cannot be taken into account for credit evaluation process.

Do I need some kind of local identification?

Yes, all Buyers will need to obtain a tax identification number from the local authorities (tax office) to open a bank account (for the transfer of the funds), sign up to utilities or obtain the title deeds of the property in your name. It is a very easy process; a 10-digit number you will obtain with the photocopy of your passport. It can easily be obtained by your solicitor via POA as well.

How we help:

  • StartKredi can apply for tax number for your convenience. 

Most frequently asked questions about vacation houses

How is the property value determined for a mortgage application for a vacation house?

After you submit your application to StartKredi, and pick the back suiting your needs the appraisal of the property will be arranged by the bank. Once the value of the property is set, the final loan evaluation and the loan amount will be decided accordingly. At the same time with mortgage application you must deposit the amount into your bank account for the appraisal report and loan evaluation fees.

How we help:

  • With StartKredi you will know all of your cost beforehand and won’t encounter any surprises. 

Can I pay in my local currency?

It is possible to have the mortgage in Turkish Lira for all foreign citizens but in Euro, British Sterling and US Dollar just for non-residents.

How we help:

  • StartKredi will provide you the quotes and all financial data in your local currency.

Do I need to pay taxes?

Foreign nationals are taxed in Turkey on income obtained from renting property in Turkey and are liable to a number of other property related taxes outlined below. The tax year in Turkey is the calendar year.

There can be an agreement (DTA) between the country you live in and The Republic of Turkey for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains.

How we help:

  • StartKredi will provide the total cost according to your country. 

What are my costs when buying a vacation house in Turkey?

Here is a brief list of what you may expect in the way of purchase costs. Please be aware that these may well vary from one estate agent to another as there is no regulation in terms of costs. You need to make sure exactly what they charging you when you buy. At time of writing they are generally as follows:

  • Estate agents commission: This is generally 3% on a resale property subject to negotiation.
  • Lawyer's fee: This varies and should be checked once you have found the lawyer you wish to retain.
  • Deeds Transfer tax: This is payable at the Cadastral Office (Tapu) and is charged on properties bought from private individuals at a rate of 3.3% usually split equally between the buyer and the seller subject to the contract. You should ensure that this is calculated on the price you paid for the property.
  • Property tax (Emlak vergisi): This is the property tax payable by the buyer upon the transfer of ownership of the property at the Cadastral Office at 0.1% of the value entered in the Property Registry.
  • Translation services: Your passport will require translation as will your Turkish contracts into English.
  • Notary fees
  • Municipality fee
  • DASK (annual compulsory earthquake insurance)
  • VAT: This is charged at 18% on the sale of a new residential building over 150m².
  • Government tax: Administration cost to the government for military checks.

How we help:

  • StartKredi services are totally free.

Do I need to be a residence of Turkey?

Having a residence permit is not necessary for the foreigner who wishes to buy a property in Turkey. Likewise, buying a property does not grant the foreigner permission to obtain a residence or work permit in Turkey.