AMF announces number of issued mortgage loans
By Sara Israfilbayova
Azerbaijan Mortgage Fund (AMF) has issued 19,242 mortgages so far. The total sum of mortgage loans has amounted to more 808 million manats ($474.7 million).
The AMF currently provides two types of product, including social [maximum period 30 years] and standard mortgage [maximum period 25 years], while the annual interest rate on services amounts to 4 and 8 percent respectively.
Mortgage is given only for an apartment or private house and its amount should not be more than 80 percent of the market price of the property. Mortgage payments cannot exceed 70 percent of borrower’s total monthly income.
Loans are paid in the Azerbaijani manat and given to citizens of the country.
Authorized organizations of the Fund include 8 banks [AG Bank, AzerTurk bank, Bank Avrasiya, Bank BTB, Xalq Bank, Kapital Bank, NBC Bank, Pasha Bank], 4 insurance companies [Qala Life, Qala Insurance, Pahsa Life, and Pasha Insurance], and 2 appraisal companies [Bilandar and MBA Consulting Group].
In 2017, some 50 million manats ($29.4 million) are allocated from the state budget to finance social mortgage through the AMF. The same amount was allocated in 2016.
The AMF was established in September 2005, in order to improve living condition of population, build the efficient housing finance mechanism, adapt the supply with real demand and attract local and foreign investors to mortgage lending.
The main functions of the Fund are refinancing mortgage loans lent by authorized credit organizations, defining requirements on refinanced mortgage loans, managing financial risk to provide its activity and stability and taking measures within its authorities, with the purpose of providing liquidity in mortgage lending and attracting inexpensive financial resources.
---
Follow us on Twitter @AzerNewsAz