Low appraisal on a Turkish mortgage: can you lose your deposit?

A Turkish bank lends on the value in its valuation report, not on the price you agreed. If the report comes in below that price, the loan shrinks and the difference comes out of your pocket. If you cannot find that difference, what happens to your deposit (in Turkish, kapora) depends on what the deposit receipt says.

The usual order of events is this: you like the flat, agree a price, the seller mentions that someone else is interested, and you pay a deposit. Only then do you apply for the mortgage, and only then does the valuation arrive. Built in that order, the plan has one remaining surprise, and it is the figure in the report. This article explains what happens when that figure is low and how to close the risk before you hand over a deposit.

Why the loan is not based on the purchase price

The bank takes the home as collateral and has its value assessed independently. The work is done by valuers from firms authorised by the BDDK, Turkey's banking regulator, to provide valuation services to banks. The valuer visits the property, checks the title deed and zoning records, compares it with similar sales nearby and writes down a value. In Turkey this report is commonly called the ekspertiz.

BDDK Board Decision No. 11364 of 29 January 2026 sets the maximum loan as a percentage of the value of the home taken as collateral. The percentage ranges from 20 to 90 per cent depending on the value band and the class on the energy performance certificate. For a home worth up to 5 million TL it is 90 per cent for class A-B, 80 per cent for class C and 70 per cent for lower classes. I set out the full table and how to read it for your own situation in the mortgage or cash article.

The key word is "value". The price you and the seller agree is your decision. The bank applies its ratio to the value in the report.

How the numbers change when the report comes in low

Take a flat agreed at 5 million TL with an energy class of C. The buyer will put in 1 million TL and borrow the remaining 4 million TL. Eighty per cent of 5 million TL is exactly 4 million TL, so the plan works. Then the report arrives:

A report 10 per cent below the price raises the cash the buyer must find by 40 per cent. A valuation 500,000 TL lower means 400,000 TL less loan, and the buyer has to cover that gap. This is before title deed fees, loan costs and agency commission are added.

If the valuation comes in above the purchase price, banks treat it differently; a higher report does not always mean a larger loan. Ask your bank which figure it uses when you apply, and get the answer in writing.

Why valuations come in lower than expected

The figure in the report summarises market data, not the seller's asking price. Common reasons for a low result:

• The comparables do not support the price. The valuer compares the home with sale and listing data for similar properties in the area. If the seller priced above the local market, the report will not follow.
• The legal status is incomplete. A missing occupancy permit (iskân), no transition to condominium ownership or additions that do not match the approved project reduce the value. In some cases the bank refuses the loan altogether. I covered this in detail in the occupancy permit article.
• Space not in the project is not counted. An enclosed balcony, a room added on the roof or an extension in the garden may have been included in the advertised floor area. The valuer uses the area in the approved project.
• Age and condition of the building. An older structure, construction before the current earthquake code or poorly maintained common areas are reflected in the value.

Will you get the deposit back? The receipt decides

The Turkish Code of Obligations recognises two kinds of deposit, and which one applies changes the outcome completely when things go wrong.

The legal presumption favours the buyer: unless the receipt says "forfeit deposit" or "the party who withdraws loses the deposit", the money counts as earnest money, and whoever claims otherwise must prove it. Even with earnest money, a seller who argues that the sale failed through the buyer's fault can claim the loss suffered. Whether failing to secure the loan counts as the buyer's fault is exactly where the dispute tends to turn.

How binding is a deposit receipt signed at an estate agency?

Property sales and promises to sell are subject to official form in Turkey: the sale takes place at the land registry, a promise to sell is made before a notary. A deposit receipt signed at an estate agent's office or between the parties does not meet that requirement. According to the settled view of the Court of Cassation, a preliminary property sale agreement made without the required form is invalid, and so are the forfeit deposit and penalty clauses attached to it. The deposit itself is returned under the rules on unjust enrichment (for example, Court of Cassation 3rd Civil Chamber, E. 2017/1137, K. 2018/11653).

That is not a reason to assume you will always get it back. If the seller does not refund voluntarily, a formal notice, mediation and a lawsuit may follow, and the facts of a particular case can lead to a different result. The smaller the deposit, the less that process is worth the effort. The real protection is a sentence written into the receipt when you sign it.

Five things to do before paying a deposit

1. Pin down the loan for yourself first. Talk to your bank about how much you can borrow on your income. This is a personal assessment, independent of the home's value, and can be done before any deposit.
2. If possible, get the valuation before the deposit. If the seller shares the title details and shows the property, you can apply for the mortgage and see the report before paying anything. Most banks pass the valuation fee on to the buyer; think of it as small insurance relative to the price of the home.
3. Ask for the energy performance certificate. For a home of the same value, the difference between class C and class D is 10 points on the loan ratio. If there is no certificate, or it is old, calculate on the lowest class.
4. Write a mortgage condition into the receipt. Sample wording: "If, in the buyer's mortgage application, the valuation is set below ... TL or the loan is approved below ... TL, and the buyer notifies this in writing within ... days, the deposit shall be refunded to the buyer in full." Also state that the money is earnest money and not a forfeit deposit.
5. Keep the deposit small and pay it by bank transfer. Put the property address and the word "kapora" in the payment description. Cash payments create problems of proof.

If the seller refuses the mortgage condition, that is information too: either they suspect the price will not survive the valuation, or they would like to profit from the buyer withdrawing. Either way, think twice before paying an unconditional deposit.

If the report has come in low, three paths remain: renegotiate the price with the seller using the comparables, cover the gap from your own funds, or, if the receipt contains a condition, take the deposit back and walk away. You can also ask your bank whether a second valuation is possible. If you would like to go through the figures and the deposit receipt together before signing on a mortgage-funded purchase, write to me. If you would like professional guidance, feel free to get in touch.