Mortgage loans slightly increase in 2015
By Nigar Orujova
Azerbaijan slightly increased loans delivery in ten month of 2015, despite the financial instability around the world and mortgage lending decrease in the first half of 2015.
The Azerbaijan Mortgage Fund delivered loans amounting to 83.2 million manat in January-October 2015 or 1.5 percent more than in the same period of 2014.
The loans worth 6 million manat were delivered through AMF in October, which is 76.5 percent more than in October 2014, the bank noted.
The total amount of refinancing the loans issued by the banks earlier amounted to 89.9 million manat in October 2015.
Some 41.6 million manat of 50 million manat envisaged for this year have been allocated for social mortgage since early 2015. The state budget transferred 4.3 million manat to the AMF in October 2015.
The average monthly amount issued by AMF authorized banks was 40.783 manat, the average term of loan issue – 280 months, the average annual interest rate is 6.71 percent, and the average monthly payment is 297.1 manat.
The fund that was created in 2005 have until now delivered some 17,843 mortgage loans worth nearly 723.8 million manat.
Some 97.1 million manat was delivered in 2014, 112.9 million manat in 2013, 74.77 million manat in 2012, 95.64 million manat in 2011, 97.08 million manat in 2010, 76.9 million manat in 2009, 70.2 million manat in 2007 and 5.6 million manat in 2006.
The maximum size of a conventional mortgage at the AMF is 50,000 manat with a down payment of 20 percent, at a rate of eight percent and a term of 25 years. The social mortgage grants 50,000 manat to the borrower, at an annual rate of four percent and a term of 30 years, with a down payment of 15 percent.
Mortgages are issued to Azerbaijani citizens in manat only. The subject of the mortgage can only be an apartment or private house and the amount of mortgage loan should not exceed 80 percent of the market value of the property.
This year, the state plans to send 50 million manat from its budget toward the issuance of social mortgages, 25 percent higher than the amount of funding for 2014.
By 2016, the total amount of funds allocated from the state budget to AMF is expected to reach 266 million manat.