Azerbaijan, Baku, Aug.2 /Trend I.Khalilova/
The Azerbaijan Mortgage Fund (AMF), acting under the Central Bank granted a 39.27 million manat loan or about $50 million in January - July 2012, according to statistical report published on AMF website on Thursday.
The volume of mortgage loans increased by 13 percent in July compared to June.
Mortgage loans totaling 384.73 million manat was granted from 2006 to August, 2012.
During January - July 2012 the total amount of refinancing loans provided by banks amounted to 56.78 million manat.
The AMF has posted bond in the amount of 23 million manat within January-July of this year.
Youth and young families account for 72 percent of total loans (41 per cent of borrowers aged 18-29 years, 31 percent - 30-35 years old) and 28 percent of loans accounted for borrowers over 36 years.
The maximum amount of regular issuance of mortgage in Azerbaijan by the AMF for today is 50,000 manat at the rate of eight percent and the term of 25 years, and under the social mortgage is 35 manat at an annual rate of four percent and the term of 30 years. The initial payment under the social mortgage is 15 percent, while for conventional loans is 20 percent.
Conditions of the mortgage lending are as the following: loans must be issues in the national currency with manats and only to Azerbaijani citizens, and an object of the mortgage can only be an apartment or private houses, volume of the mortgage lending must not exceed 80 percent of the market price, monthly payment for a loan must not exceed 70 percent of debtor's monthly income, as well as presence of an agreement on life insurance and others.
Preferable conditions are granted to members of families of war victims, families of national heroes, internally displaced persons, civil servants with at least a three-year experience, candidates PhD and PhD, persons making special contributions to sport, as well as militaries with at least a three-year service term.
Each family having the right to a lax mortgage loan can use this chance only for one time.
There are 26 authorized banks of the Mortgage Fund. Nineteen insurance companies and 13 appraisal organizations are the participants of the mortgage market.
Official exchange rate on Aug.2 is 0.7855 AZN/USD