TODAY.AZ / Business

Mortgage credits may increase apartments with purchase deeds in price

26 January 2006 [04:19] - TODAY.AZ
Most of new residential buildings currently being constructed in the territory of the republic can be not subjected to mortgage lending implementation of which will start soon.

The main reason of it is that newly-erected apartment buildings have not been registered yet, APA reports. So, when credits are granted to beneficiaries, purchases deeds of apartments will be taken as a pledge by agent banks. As a result, after mortgage credits funding is started, it is supposed that old apartment buildings already being under exploitation will rise in price.

However, the specialists of the Mortgage Fund (MF) told that as to the question of old buildings' rising in price, this process will be balanced by the market rules.

"It is possible to speak about this matter only after starting distribution of credits, by making conclusions from the course of the process. The existing demand and supply in the market do not exclude growth in price, but we do not expect any price growth", - the MF specialists said.

It should be reminded that the amount of mortgage credits to be granted for 3-15 years will not exceed AZN 30 thousand (AZM 150 million) and 12% annual and this amount will not be more than 70% of the market price of immovable property subjected to mortgage lending registered by the date of disbursement of the credit. Monthly amount to be paid on mortgage credits should not exceed total monthly income of the beneficiary by 50% and age of the beneficiary by the last payment date of the credit should not be more than the pension age stipulated in the legislation.

The credit will be ensured by mortgage of immovable property and immovable property subjected to mortgage will be valued by an independent expert. Main debt and calculated interests on the credit will be paid in equal parts every month. Life and labor ability of the beneficiary and immovable property subjected to mortgage will be insured under a condition of not being less than the amount of the mortgage credit assuming the price market as a basis.

Persons meeting the terms of mortgage lending must pass preliminary valuation by appealing to authorized credit organizations.

URL: http://www.today.az/news/business/22522.html

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