Azernews.Az

Loans amounting to 74.77 million manat, or more than $95 million were delivered through the Azerbaijan Mortgage Fund (AMF) under the Central Bank of the country in 2012, the AMF said on Tuesday, Trend news agency reported.

The total volume of refinancing the loans given by the banks in 2012 hit 91.15 million manat. The AMF placed bonds to the amount of 36 million manat during the year.

Mortgage loans worth more than 420 million manat (95.64 million manat in 2011, 97.08 million manat in 2010, 76.9 million manat in 2009, 70.2 million manat in 2007, 5.6 million manat in 2006) were delivered in 2006-2012 through AMF.

72% of the total volume of given loans (41% of borrowers aged 18-29, 31% - 30-35 years old) fell to young people and families. 28% of the loans fell to borrowers over 36 years old.

Currently the maximum amount of a common mortgage loan through the AMF is 50,000 manat at a rate of 8% with a payback period of 25 years. Terms under the social mortgage is 35,000 manat at an annual rate of 4% with a payback period of 30 years. The initial payment under the social mortgage is 15%, whilst the conventional loan is 20%.

Conditions of mortgage lending are as follows; loans must be issued in Azerbaijani manats and only to Azerbaijani citizens and the mortgage can only be for an apartment or private house. The volume of mortgage lending must not exceed 80% of the market price and the monthly payment must not exceed 70% of the debtor's monthly income. It is compulsory to take out an agreement on life insurance.

Preferential conditions are granted to family members of war victims, national heroes, internally displaced persons, civil servants with at least a three years' experience, PhDs, those making special contributions to sport as well as to servicemen with at least a three-year service term.