Azerbaijan, Baku, Nov. 2 / Trend J. Nasibova /
Loans amounting to 74.68 million manat, or more than $95 million have been allocated through the Azerbaijan Mortgage Fund (AMF) under the Central Bank of the country in January-October 2012, the AMF said today.
The total volume of refinancing the loans given by the banks earlier hit 50.6 million manat in January-October 2012.
AMF placed bonds to the sum of 23 million manat for 10 months of this year.
The mortgage loans worth more than 420 million manat were given through the AMF from 2006 to October 2012.
Around 72 per cent of total volume of given loans (41 per cent of borrowers aged 18-29, 31 per cent - 30-35 years old) fell to young people and families. Around 28 per cent of loans fell to borrowers over 36 years old.
Currently the maximum amount of a common mortgage loan through the AMF is 50,000 manat at a rate of eight per cent and a payback period of 25 years. 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 the conventional loan is 20 per cent.
Conditions of mortgage lending are as follows; loans must be issued in the national currency in manats and only to Azerbaijani citizens and the requirement for the mortgage can only be an apartment or private house. The volume of mortgage lending must not exceed 80 per cent of the market price and the monthly payment 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 family members of war victims, national heroes, internally displaced persons, civil servants with at least a three years' experience, PhDs, those 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 27 authorised banks belonging to the Mortgage Fund, 20 insurance companies and 13 appraisal organisations all as participants in the mortgage market.
Official exchange rate on Nov. 2 is 0.7849 AZN/USD.