Azerbaijan, Baku, Sept. 4 / Trend A.Akhundov /
The Azerbaijan Mortgage Fund (AMF), acting under the Central Bank, granted loans worth 42.51 million manat, or over $54.13 million in January - August 2012, the AMF statistical report said on Tuesday.
The volume of mortgage loans increased by 8.25 per cent in August compared to July.
Mortgage loans totalling 387.97 million manat have been granted from 2006 to August, 2012.
During January - August 2012 the total amount of refinancing loans provided by banks amounted to 65.53 million manat. The AMF has posted bonds totalling 23 million manat during January-August 2012.
Young people and families account for 72 per cent of the total loans,41 per cent of borrowers are aged 18-29 years, 31 per cent - 30-35 years and 28 per cent of loans accounted for borrowers over 36 years.
The maximum amount of a common mortgage loan through the AMF is 50,000 manat at the rate of eight per cent and a payback period of 25 years and under the social mortgage it is 35,000 manat at an annual rate of four per cent and a payback period of 30 years. The initial payment under the social mortgage is 15 per cent, while for conventional loan is 20 per cent.
Conditions of mortgage lending are as the following: loans must be issued in the national currency in manats and only to Azerbaijani citizens and the subject of the mortgage can only be an apartment or private house. The volume of the mortgage lending must not exceed 80 per cent of the market price and the monthly payment for a loan must not exceed 70 per cent of the debtor's monthly income. It is compulsory to take out an agreement on life insurance.
Preferable conditions are granted to members of families of war victims national heroes, internally displaced persons, civil servants with at least a three years' experience, PhDs, persons making special contributions to sport, as well as the military with at least a three-year service term. Each family having the right to such a mortgage loan can only use the chance once.
There are 26 authorised banks belonging to the Mortgage Fund, 19 insurance companies and 13 appraisal organisations all as participants in the mortgage market.
The official exchange rate is 0.7853 AZN to $1 on Sept. 4.