The Azerbaijani banks issued almost 3,000 mortgage loans worth 194 million manats in 2017, said a message posted on the Mortgage and Credit Guarantee Fund’s website Dec. 27.
Since 2006 up till now, mortgage loans worth 930 million manats have been issued through the Mortgage and Credit Guarantee Fund (a legal successor of the Azerbaijan Mortgage Fund OJSC). Thus, 276 million manat out of this amount accounted for the share of preferential loans.
According to the new mortgage loan issuance order, approved in June 2016, an conventional mortgage loan will be issued only to Azerbaijani citizens and only in the national currency for a term from 3 years to 25 years, while preferential mortgage - up to 30 years to purchase a house, owned by the citizen. Interest rates on conventional mortgage must not exceed eight percent, while 4 percent per annum in preferential mortgage loan.
The maximum amount of a conventional mortgage loan is 150,000 manat, while a preferential loan - 100,000 manat. The minimum amount of the initial payment for conventional mortgage should be at least 15 percent, while for preferential mortgage - 10 percent.
The family members of war victims, national heroes, internally displaced people, civil servants with at least a three years' experience, teachers of secondary schools with at least a five-year service term, PhDs, doctors of science and those having special merits in sport as well as the military with at least a three-year service term can use the preferential conditions. Each family having the right to such a mortgage loan can use it only once.
(1.7001 AZN = $1 on Dec. 27)
Follow us on Twitter @AzerNewsAz