Mortgage vs Personal Loan in Turkey — Full Comparison
Rate, maturity, cost and usage differences between the two loan types and when to choose which.
Lale Dijital
Quick Overview
Mortgages are used only for home purchases, secured by the purchased property. Personal loans can be used for any purpose, usually unsecured.
Feature Comparison
| Feature | Mortgage | Personal Loan |
|---|---|---|
| Rate | Low (2.5-4%/mo) | High (4-6%/mo) |
| Maturity | 120-240 months | 3-48 months |
| Collateral | Property mortgage | Usually none |
| KKDF Tax | No | 15% |
| BSMV Tax | No | 10% |
| Appraisal | Required | Not required |
When to Choose Which?
Mortgage
- Long-term home financing (5+ years)
- Willing to pledge property
- Priority on low rate and long term
Personal Loan
- Short-term needs: vacation, renovation, wedding
- No property to pledge
- Small, quick cash requirements
Cost Example
500,000 TL loan, 60-month term:
| Loan | Monthly | Total Repay |
|---|---|---|
| Mortgage (3%/mo) | ~16,900 TL | ~1,014,000 TL |
| Personal (5%/mo + tax) | ~26,400 TL | ~1,584,000 TL |
The mortgage saves ~570,000 TL over the same term.
Calculate Yours
Compare both loan types with our loan calculator.
Frequently Asked Questions
Mortgage or personal loan — which is better?
For home purchases, mortgages are better: lower rates and longer maturities. However, they require mortgage registration and appraisal fees.
Can a personal loan be used for buying a home?
Technically yes, but rates are higher and maturities cap at 36-48 months. Not viable for large amounts.
What is the max mortgage maturity in Turkey?
Typically up to 120 months (10 years); some banks offer up to 240 months.
Do KKDF and BSMV apply to personal loans?
Yes. Personal loans carry 15% KKDF and 10% BSMV. Mortgages are exempt — a significant cost difference.