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Azerbaijani youth to get mortgage loans

2 February 2015 13:46 (UTC+04:00)
Azerbaijani youth to get mortgage loans

By Aynur Karimova

To purchase a house is one of the most important decisions in the life of all families in Azerbaijan which requires a huge sum of money. However, lack of necessary funds is the major problem for the youth particularly those living in the capital Baku.

In this case a bank loan is considered as the most acceptable solution to the problem. To this end, Azerbaijan’s Youth and Sports Ministry has made all efforts to increase the funds allocated for social mortgage and to increase the number citizens to be provided with such a type of mortgage.

Speaking at a press conference on January 28, Intigam Babayev, Deputy Youth and Sports Minister said the youth, engaged in science, will also be provided with social mortgages.

“This, first of all, is related with their salaries. However, the resent statement of the Central Bank gives hope that the ideas recently proposed in this field have already been implemented,” Babayev noted.

The main goal is to resolve the housing and unemployment of youth as part of the Strategy of development of the Azerbaijani youth in 2015-2025, approved by President Ilham Aliyev.

In Azerbaijan, the maximum amount of mortgage loans provided via the Azerbaijan Mortgage Fund makes up 50,000 manats with a rate of eight percent and maturity term of 25 years. The social mortgage loan is issued in the amount of 50,000 manats with an annual rate of four percent and for a term of 30 years.

The initial payment to receive the social mortgage is 15 percent, while the figure is 20 percent for a conventional loan.

The loan is allocated in national currency, manat and the beneficiaries should be the Azerbaijani citizens.

Mortgage is given only for an apartment or private house and its amount should not exceed 80 percent of the market value of the property. The monthly payment for a loan must not exceed 70 percent of the monthly income of the borrower, who should also produce an agreement on life insurance.

Martyrs families' members, families of National Heroes of Azerbaijan, internally displaced persons, civil servants with an experience of not less than three years, people with Ph.D., persons who have special merits in the sport, as well as military service with a minimum period of three years will enjoy some preferable conditions.

Each family who has the right to a lax mortgage loan can receive it only one time.

So far, the AMF has given 15,400 mortgage loans.

Currently, 28 of the total 44 local banks are authorized banks of AMF. Meanwhile, some 21 of the existing 27 insurance companies and 15 appraisal organizations are the main players of the mortgage market.

As of February 2015, the families wishing to buy a house with mortgage loans will be able to apply online for a mortgage loan.

This will be possible thanks to the ‘Online mortgage’ portal (, which will operate since February 2.

The new service will facilitate the Azerbaijani citizens to get a loan, increase the transparency of mortgage loan’s allocation, as well as strengthen the control system of the fund.

The Azerbaijani government has significant financial resources. It plans to increase the volume of financing of mortgage loans in the coming years.


Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova

Follow us on Twitter @AzerNewsAz

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