CBA Chairman: It is expected to reduce interest rates of mortgage loans and make changes in rules on pledge and down payment

“We are already completing the works over the documents and project on mortgage program, hope that we will be able to adopt the both documents in the coming months”, CBA Chairman Elman Rustamov said.

To him, several radical amendments will be made to conditions in order to create more popular and easy use of mortgage loan for people: “Amount of mortgage loan is expected to increase. And this will allow the young people to buy flats in new buildings”.

CBA chairman said that there were plans connected with decreasing of interest rates of the mortgage: “Interest rates of mortgage are low now too, because this mortgage is financed by state budget, but we are planning to reduce it more”.

New proposals also consider making changes in the amount of down payment and pledge.

“We plan to create Mortgage Guarantee Fund. By the help of this fund, it will be possible to reduce the amount of down payment or even run away from it”.

”It has been considered in the proposals that the person, who purchases a house via mortgage, especially the youth, may pledge with registration document”.

Commercial mortgage will be based on market prices: “Because, this mortgage is financed not from the state budget, but by means of banks attracted from the market. Main users of this mortgage must be the middle class”.

“This document is expected to adopt until the end of this year”, Rustamov noted.


/APA/