Mortgage loan allocations resume
The much-awaited allocation of mortgage loans that
aims to help solve the housing problem in Azerbaijan will begin on
June 1.
According to the Mortgage Fund, the body in charge of such allocations operating under the Central Bank, the maximum interest rate for regular loans has been set at 8%, while that for concessional credits - 4%. Regular loans will be allotted for 25 years at the most, while advantageous ones - for up to 30 years. The first payment makes up 15% for all types of mortgage loans.
Homes will be purchased under the loans strictly in the primary market, i.e. in newly-constructed buildings, while used property could be used only as a collateral.
The government suspended the allocation of mortgage loans across the country in 2007.
Aftandil Babayev, deputy chairman of the Central Bank`s steering board, said the resumed disbursal of such credits was part of state anti-crisis efforts.
"The goal here is to use mortgages as a tool reversing this impact in the areas that are potentially prone to the crisis. Attention is being paid mostly to maintaining jobs and opening new ones. Though this hasn`t been reflected in legal documents, this should be in the interest of the Central Bank and other banks to be involved in mortgage allocations," Babayev said.
Citizens have already started applying for such loans to the agent banks in charge of lending the funds. However, all those seeking the loans will not be able to receive them due to constraints in the mortgage budget.
Parliament member Vahid Ahmadov pointed out that there are quite a few young families in Azerbaijan in need of housing.
"Therefore, the mortgage market should be expanded. This requires the allocation of additional funds from the state budget," the lawmaker said.
Concessional loans will benefit the family members of war victims, national heroes, displaced persons, state servants, people holding PhD degrees in science, doctors, military men and outstanding sportsmen.
35 million manats ($43.7 million) have been allocated from this year`s state budget to finance mortgage allocations.
According to the Mortgage Fund, the body in charge of such allocations operating under the Central Bank, the maximum interest rate for regular loans has been set at 8%, while that for concessional credits - 4%. Regular loans will be allotted for 25 years at the most, while advantageous ones - for up to 30 years. The first payment makes up 15% for all types of mortgage loans.
Homes will be purchased under the loans strictly in the primary market, i.e. in newly-constructed buildings, while used property could be used only as a collateral.
The government suspended the allocation of mortgage loans across the country in 2007.
Aftandil Babayev, deputy chairman of the Central Bank`s steering board, said the resumed disbursal of such credits was part of state anti-crisis efforts.
"The goal here is to use mortgages as a tool reversing this impact in the areas that are potentially prone to the crisis. Attention is being paid mostly to maintaining jobs and opening new ones. Though this hasn`t been reflected in legal documents, this should be in the interest of the Central Bank and other banks to be involved in mortgage allocations," Babayev said.
Citizens have already started applying for such loans to the agent banks in charge of lending the funds. However, all those seeking the loans will not be able to receive them due to constraints in the mortgage budget.
Parliament member Vahid Ahmadov pointed out that there are quite a few young families in Azerbaijan in need of housing.
"Therefore, the mortgage market should be expanded. This requires the allocation of additional funds from the state budget," the lawmaker said.
Concessional loans will benefit the family members of war victims, national heroes, displaced persons, state servants, people holding PhD degrees in science, doctors, military men and outstanding sportsmen.
35 million manats ($43.7 million) have been allocated from this year`s state budget to finance mortgage allocations.
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