Renewal of mortgage loaning slightly affects Azerbaijani real estate market: experts
Azerbaijan, Baku, June 8 / Trend U. Ismayilova /
Renewal of Azerbaijani mortgage loaning slightly affected activity of the market. But prices remained unchanged, Property Market Participants public organization said on June 8.
"Mortgage loaning did not affect the number of deals on purchase-sale of property," the organization said.
Low level of loaning left several prestigious construction companies behind that leads to poor interest of builders for mortgage, experts said.
"Research of the market demonstrated that most of construction companies remained behind the first stage after revival of mortgage loaning in Azerbaijan," the organization said.
Azerbaijani mortgage fund under the Central Bank resumed granting of mortgage loans from June 1. Granting of mortgage loans was suspended because of lack of funds in summer 2007.
Maximal sum of simple mortgage granting hits 50,000 manat, preferential mortgage - 35,000 manat. Maximal annual percent rate for simple loan is 8 percent, preferential one - 4 percent. Maximal term for simple loan is 25 years, for preferential one - 30 years. Initial fee in both cases is 15 percent.
Mortgage terms are following: loans must be given in national currency (manat) and only to Azerbaijani citizens. Mortgage can include flats and private houses. Sum of mortgage loaning must not exceed 85 percent of market cost. Monthly payment for mortgage loan must not exceed 70 percent of monthly income of borrower, treaty on life insurance, etc.
Do you have any feedback? Contact our journalist at [email protected]