The board of the National Bank of Azerbaijan approved the revisions and amendments to standard requirements for Azerbaijan Mortgage Fund-refinanced mortgage credits issue to authorized credit organizations. These are developed by the totals of mortgage crediting analysis covered the last five months (the Fund started issuing credits March 1, 2006).
The draft rules on issue of state public privileges or mortgage will be adopted n the level of the Azerbaijan President. According to the Executive Director of the Azerbaijani Mortgage Fund, there were presidential decrees on the development of mechanism and categories, therefore concrete resolutions on the projects, positively estimated by the countrys government, will be finally adopted in the high level.
Taking into consideration the low living conditions of the population, the issue on injection of changes into the terms on issue of mortgage credit is very actual. Within the frames of new rules, , the term of the term of repayment of mortgage credit will be increased from 15 to 25 years for low-income families. For new families the initial payment, which comprises 30%, will be reduced almost twice. The interests for the credit will not be changed and maintained only the level of 12% a year. At the same time the government is expected to undertake either half the initial payment, or half interests for credit.
Revisions and amendments to the mortgage crediting system will serve simplification and modernization of that system. They will also help simplify the borrower and loan assessment process, reduce quantity and volume of required documents and extend mortgage market infrastructure (mortgage agents, brokers and services).
As a result of inclusion of such items the mortgage credits obtaining possibility is significantly expanding through purchasing housing in newly constructed buildings.
Besides, a proposals package has been prepared for submission to the relevant authorities for increase of dwellers using this service, but these proposals are linked to the issues outside the mortgage crediting scope (common conditions, current legislation, partial release of borrower from taxes registration and so on).
Such innovations make hopeful that the majority of young families can easily join the process and become owners of apartments.