About Urban Transformation Financing
Urban Transformation Financing provides you with the support you need for the works within the scope of the Project for the Transformation of Areas Under Disaster Risk, which was initiated in accordance with Law No. 6306.
How to Apply for Urban Transformation Financing
Apply for Kuveyt Türk Urban Transformation Financing to make your risky buildings earthquake-resistant. You can also benefit from this financing when you want to purchase a new house/workplace because yours is at risk.
Details on Urban Transformation Financing
The financing features to be used by beneficiaries who wish to strengthen their risky buildings or purchase a new residence/workplace are as follows:
- The maximum financing amount you may use for housing construction or purchase is 1,250,000 TRY.
- The maximum Construction Financing amount for a workplace is set at 800,000 TRY. The upper limit for Purchase Financing is 350,000 TRY.
- You may use financing up to a maximum of 3,000,000 TRY for your other residences.
- You may opt for a repayment plan of up to 24 months with no principal repayment. The selected plan will include only profit share payments and is exempt from BITT.
- The profit share incentives offered under the financing are as follows:
- 8.4% per year (0.70% per month) for the first residence at 1.49% profit share rate
- 7.2% per year (0.60% per month) for the next residences with the same profit share rate
- 4.8% per year (0.40% per month) for workplaces
- In risky sites, in the event of any applications performed by parties other than the ministry, municipalities, or Housing Development Administration of the Republic of Türkiye (TOKİ), only the differences in fees and charges calculated for changes in the intended use and additions in the building area will be collected from you. The requested differences are added to the fees and charges previously charged by the municipalities for the existing areas of the buildings.
- Transactions, contracts, applications, handovers, and registrations to be made pursuant to the Law are exempt from notary fees, title deed fees, municipal fees, circulating capital fees, and other taxes.
- If you are a property owner, you may use only one of the state's profit share support and housing benefits.
- Beneficiaries holding tenant status can get financing from the bank of their choice for purchasing a residence.
- If the residents of a building that has multiple owners are going to demolish the risky building and build a new one through a partnership, they have to use financing from the same bank.
Types of Urban Transformation Financing
Urban Transformation Financing comprises three different types of financing. These are as follows:
Strengthening Financing
If your building is deemed technically suitable for strengthening, you may apply for Strengthening Financing.
Construction Financing
If you plan to demolish and rebuild your home or workplace, you may benefit from Construction Finance.
Purchase Financing
If the building you live in has been classified as risky, you may benefit from Purchase Financing to buy a new house or workplace.
Beneficiaries of Urban Transformation Financing
You may benefit from financing if you have had a building risk assessment carried out by the institutions authorized by the Republic of Türkiye Ministry of Environment, Urbanization and Climate Change. Those who have been living in risky buildings as tenants for at least 1 year are also entitled to apply for financing.
Channels to Apply for Urban Transformation Financing
If you are not a Kuveyt Türk customer, you may visit our Become a Kuveyt Türk Customer page and check out the steps to become a customer. Visit the nearest Kuveyt Türk branch to start the application process for Urban Transformation Financing.
Frequently Asked Questions About Urban Transformation Financing
How much support does the state provide for Urban Transformation Financing?
The Republic of Türkiye Ministry of Environment, Urbanization and Climate Change covers 0.70% of the profit share.
Are there any conditions to benefit from Urban Transformation Financing?
In order to benefit from the financing, you must apply to the institutions authorized by the ministry and have a building risk assessment.
Is it possible for tenants to benefit from financing?
Tenants who have been living in a risky building for at least 1 year can benefit from financing. Owners of limited real rights are also considered in the same category, provided that they have been residing in the building.
Is it possible for one person to use financing for more than one building?
The limit for the total financing amount to provide profit share support for one beneficiary is 3 million TRY. You may transform more than one residence so long as the sum remains below this amount.
Does the profit share rate change for financing the transformation for the second apartment?
The monthly profit share support is 0.70% for the first apartment and 0.60% for the second apartment.
What is the maximum amount of financing that can be used by those who wish to transform their workplace?
You may use 800 thousand TRY financing with 0.40% monthly profit share support to transform your workplace.
How many years of term is applicable?
The term is 10 years for housing and 7 years for workplaces.
Is there a time limit for application?
You may apply to our bank for financing within 3 years from the date of demolition or eviction.
Do all neighbors need to reach an agreement in order to benefit from the profit share support?
The building must be vacated by mutual agreement to benefit from the profit share support.
Will each apartment be financed separately for the transformation of an apartment building with 15 apartments?
Provided that the right holders are different people, it is possible to use financing for 15 apartments separately.