Conditions for state mortgage loans in Azerbaijan announced
Azerbaijan, Baku, May 25 / korr. Trend . U. Ismaylova /
Azerbaijan Mortgage Fund (AMF) working under the Central Bank of Azerbaijan maintained the old conditions of for issuing mortgage loans through agent banks, a source at AMF said.
The Fund said that the maximum amount of the usual mortgage loans is as before 50,000 manats and preferential loan - 35,000 manats. The maximum annual percentage rate for the usual loan is 8 percent, and preferential - 4 percent. The maximum duration of the usual loan is 25 years and old - 30 years, the primary fee is the same for all categories of borrowers (15 percent).
The conditions of mortgage loans are the following: loans must be issued in national currency - manat, and only to the citizens of Azerbaijan. The subject of the mortgage can only be apartments and private homes, the amount of mortgage loan should not exceed 85 percent of the market cost of the property, which lie under the mortgage, the monthly payment for the loan should not exceed 70 percent of the borrower's monthly income, the amount of life insurance shall exceed the amount of the mortgage loan and others.
Access to the preferential loans may be gained by the families of martyrs, families of national heroes, internally displaced persons, civil servants with experience of at least three years, candidates and doctors of science, persons with special achievements in sports, as well as the minimum period of military service for three years.
Each family who has the right for preferential mortgage can take advantage of this only once.
Today Azerbaijan Mortgage Fund refinanced mortgages at 63.9 million manats issued through authorized banks, which is 94 percent of the total mortgage portfolio. During the period from March 2006 to June 2007, when the AMF had active operations on financing the purchase of housing, banks issued mortgage loans at 67.9 million manat.
During 2005-2008, the Public budget of Azerbaijan provided 94 million manat for mortgage loans through the AMF, of which 68 million manat was allocated through the banks.
The 2009 Public budget envisages 14.5 million manats to finance the social mortgage.
Official rate on May 25 is 0.8036 AZN/USD,Do you have feedback? Contact our journalist at: [email protected]