Öz The EU mortage markets , especially mortage credit markets constitute a crucial aspect of the overall economy of all EU Member States. At the end of 2004, the value of outstanding residential mortgage loans represented 46,4 % of the EU 15 GDP. Most EU mortgage markets have been expanding rapidly in recent years and in many Member States outstanding mortage debt is currently at historically high levels relative to GDP. However, the mortgage market remains higly fragmented in Europe, both at the level of mortgage products available to homebuyers and at the level of mortgage funding instruments. In no national markets borrowers are faced with a fall range of mortgage products. Origination standarts differ as wellas standarts for servicing loans, and only few banks originate and service mortgage loans in more than one country. The lack of integration of the mortgage capital market comes at a tost, both for issuers and investors. In this paper, it will be examined recent developments in the EU mortgage markets in the finnacial integration pocess and the mortgage markets of Turkey as candidate counry, will be made theın comperison to the EU mortgage markets.