The mortgage process has less to do with the bank than most buyers expect and far more to do with the appraisal. And that is exactly where buyers are most often caught unprepared.
The sequence
1. Pre-approval (optional, recommended). Before viewing, get an indication from the bank based on your income. It clarifies the budget band to search in and strengthens your hand in negotiation — a buyer with financing ready is valuable to a seller.
2. Choosing the property and agreeing terms.
3. The mortgage application. The bank assesses your income, credit history and existing borrowing.
4. The appraisal. The bank has the property valued by an independent, regulated valuation firm. More on this below.
5. Loan allocation. The bank sets the loan amount against the appraised value.
6. Deed and mortgage. The bank's charge is registered simultaneously with the transfer, so the registry appointment must be coordinated with the bank.
The appraisal: the critical step
The appraisal report says what the property is worth to the bank. The bank lends against the appraised value, not the sale price.
The report examines:
- Location and comparable sales — achieved prices for similar properties nearby
- Building age and condition
- The occupancy permit (iskan) — its absence affects the valuation
- The title record — encumbrances, annotations, shared ownership
- Full ownership vs construction servitude
- Zoning compliance — whether the building matches its permit
The cost is usually the buyer's and is payable whether or not the loan proceeds.
What if the appraisal comes in low?
This is where buyers are most often caught out.
Say you agreed ₺5,000,000 and the bank's loan-to-value is 80%. If the appraisal comes in at ₺5,000,000 the bank lends ₺4,000,000 and your deposit is ₺1,000,000.
If the appraisal comes in at ₺4,500,000, the bank lends ₺3,600,000. Your deposit is not ₺1,000,000 but ₺1,400,000. You must find the extra ₺400,000 in cash.
Your options then:
- Cover the difference in cash — if you have it.
- Renegotiate with the seller — the appraisal is independent evidence that the price is above market, and a strong argument.
- Apply to another bank — different firms may reach different values, but a second appraisal fee arises.
- Withdraw — losing any deposit or forfeit already paid.
The way to avoid the cost of the fourth option is to put an appraisal condition into the preliminary agreement: "if the appraised value falls below X, the buyer may withdraw and the deposit is returned." Getting that into the contract is the single most valuable thing a buyer can do before signing.
When the appraisal works for you
The appraisal is usually seen as an obstacle. It is a protection.
Consider how far Küçükçekmece's neighbourhood averages diverge: Atakent ₺93,200/m², Mehmet Akif ₺34,100/m². In thin-market neighbourhoods (Fatih, Kemalpaşa, Yenimahalle) there is little comparable evidence, so judging whether a price is right is hard.
In those neighbourhoods the appraisal is the buyer's most reliable independent opinion. We recommend commissioning one even if you are not borrowing — the fee is trivial next to overpaying.
Do not forget the total cost
Items commonly skipped when budgeting for a mortgage:
- Deed fee — 4% of the sale price; 2% buyer and 2% seller by law, but in practice usually pushed onto the buyer. It is a real negotiating item.
- Revolving-fund charge — fixed; confirm on the day.
- Appraisal fee
- Mortgage registration cost
- Loan arrangement fee — varies by bank
- DASK and home insurance — DASK is compulsory
- Agency fee
Together these add a substantial sum on top of the deposit. Work out your total cash requirement before applying; "my deposit is ready" is usually an incomplete calculation.
A warning about the occupancy permit
The single document that causes most trouble on the lending side is the occupancy permit (iskan).
Without it a bank may decline to lend or reduce the loan-to-value. This comes up particularly in buildings handed over after renewal but never certified.
The question to ask when viewing is plain: is there an occupancy permit, and what is its date? If the answer is "it is being obtained", proceed knowing you may not be able to borrow until it is.
We establish the occupancy permit status, the title encumbrances and the full ownership / construction servitude position for every property in our portfolio — before the mortgage process starts, because those three decide whether the loan happens at all.