Baku, Azerbaijan, May 11
By Kheyraddin Nasirzade - Trend:
Azerbaijan Mortgage and Credit Guarantee Fund does not exclude the possibility of changes in the conditions of mortgage lending, a source in the Fund told Trend.
It was noted that this year, there may be changes in the financial markets, in the economic conditions, and in terms of issuing mortgage loans, depending on the needs of the population.
The source said that mortgage lending is always in the spotlight as part of the social policy pursued by the state to improve the living conditions of the population. In order to further develop the system of mortgage lending, expand access to mortgage loans and automate the lending process, the Fund and the relevant state bodies regularly introduce consistent and relevant innovations.
To increase the level of public service, the process of providing mortgage loans from the moment of receiving applications until the issuance of the loan has been fully automated. Currently, as a result of the state support for improving the living conditions of the population, mortgage loans are provided on preferential terms.
Despite that the maximum interest rate on mortgage loans was set at 8 percent per annum, as a result of competition in the mortgage market among authorized banks, the interest rate was reduced to 7 percent per annum. The source noted that, for comparison, interest rates on mortgage loans are more than 12 percent in Kazakhstan and more than 10 percent in Russia.
Preferential mortgage loans are issued to persons of certain social categories at 4 percent per annum. As reported, in recent years the circle of persons eligible for preferential mortgage loans has expanded.
According to the fund, changes and trends in the field of mortgage lending in the leading countries of the world will be carefully examined and the accumulated experience will be regularly applied by the Fund.