Mortgage portfolio of Kazakh banks decreases
Baku, Azerbaijan, Nov. 26
By Elena Kosolapova - Trend:
This year, the mortgage market of Kazakhstan has demonstrated the downward trend for the first time in the last five years, according to the Ranking.kz analytical service.
On the results of the first nine months of 2015, the total mortgage portfolio of banks in Kazakhstan decreased by 0.3 percent, whereas in previous years its average annual growth stood at 7.7 percent.
In January-September, the volume of the loan portfolio of the Housing Construction Savings Bank of Kazakhstan JSC (Zhilstroysberbank) immediately rose by 43.6 percent. This is a significant increase in the portfolio of this bank in the past five years.
Reduction of the mortgage market in Kazakhstan takes place amid falling solvency of the population while maintaining the high cost of housing loans, the message said.
The weighted average effective interest rate on traditional mortgage banking offers is 17 percent per annum, the minimum rate - 8.7 percent, while the maximum rate is 30.6 percent.
The average citizen of Kazakhstan needs to spend 60 percent of his (her) monthly earnings for servicing mortgage for the purchase of one-room apartment (33 square meters) on the secondary market, while the minimal amount of these earnings is 38 percent and the maximum - the whole salary.
For comparison, the effective interest rate on loans through the system of housing savings varies from 4 percent to 11.4 percent per annum, the average rate amounts to 8 percent per annum.
In this case, the average resident of Kazakhstan will spend 37 percent of his (her) salary for the monthly payment on the loan, the minimum amount is 28 percent, and the maximum amount of the monthly payment is 45 percent of the Kazakh resident's salary.