Today.Az » Business » Mortgage financing maybe increased in 2013
13 December 2012 [10:00] - Today.Az
The Azerbaijani Central Bank (CBA) expects mortgage lending volume to increase in 2013, CEO, Chairman of the Board, Elman Rustamov told media today.
"Funding for social mortgages will be increased twice in 2013," he said. "This is very important. "The Central Bank will also take steps to increase commercial mortgage volume. We expect that the total budget for mortgages will amount to 100 million Manat next year."
This will cover the entire demand for mortgage loans.
"Additional work is being conducted to attract funds from other sources," the CBA head said.
A decision will be made in 2013 as to whether or not to change the terms of mortgage lending.
Currently the maximum amount of a common mortgage loan through the AMF is 50,000 Manat at a rate of 8% with a payback period of 25 years. Under the social mortgage it is 35,000 Manat at an annual rate of four per cent with a payback period of 30 years. The initial payment under the social mortgage is 15 per cent, whilst the conventional loan is 20 per cent.
Conditions of mortgage lending are as follows; loans must be issued in Azerbaijani Manats and only to Azerbaijani citizens and the mortgage can only be for an apartment or private house. The volume of mortgage lending must not exceed 80% of the market price and the monthly payment must not exceed 70 per cent of the debtor's monthly income. It is compulsory to take out an agreement on life insurance.
Preferential conditions are granted to family members of war victims, national heroes, internally displaced persons, civil servants with at least a three years' experience, PhDs, those making special contributions to sport as well as the military with at least a three-year service term. Each family having the right to such a mortgage loan can only use the chance once.
There are 27 authorized banks belonging to the Mortgage Fund, 21 insurance companies and 13 appraisal organizations, all are participants of the mortgage market.
/Trend/
|
|
