Azerbaijan facilitates buying house

/AzerNews/

By Amina Nazarli

My house is my castle. Do you have your own castle to protect your body and soul in cold and hot?

Buying a house is a hard move in every country as it requires considerable sum of money. Cost of housing in Azerbaijan is still relatively high, especially in the capital Baku. Lack of necessary funds is the major problem of most people, especially youth who are looking for a solid ceiling over their heads.

Therefore, a bank loan is regarded as the most acceptable solution to the problem. Buying a real estate on bank loan is quite popular practice worldwide.

To facilitate the housing problems, the Azerbaijani government has decided to increase the allocations for financing social mortgage loan by 25 percent in 2015.

The overall amount of the social mortgage will be 50 million manat as compared to 40 million manat in 2014.

With the provided funding of social mortgage in the next year, a total amount of fund resources will reach 288 million manat.

So far, the Azerbaijani Mortgage Fund (AMF) has issued 15,393 mortgage loans, totaling 612.37 million manat.

Currently, 28 of the total 44 local banks are authorized banks of AMF. Meanwhile, some 21 of the existing 27 insurance companies and 15 appraisal organizations are the main players of the mortgage market.

In Azerbaijan, the maximum amount of mortgage loans provided via the AMF makes up 50,000 manat at a rate of eight percent and maturity term of 25 years. The social mortgage loan is issued in the amount of 50,000 manat at an annual rate of four percent and for a term of 30 years.

The initial payment to receive the social mortgage is 15 percent, while the figure is 20 percent for a conventional loan.

Mortgage is allocated in national currency, manat and the beneficiaries should be the Azerbaijani citizens.

Mortgage is issued only for an apartment or private house and its amount should not exceed 80 percent of the market value of the property. The monthly payment for a loan must not exceed 70 percent of the monthly income of the borrower, who should also produce an agreement on life insurance.

Martyrs families' members, families of National Heroes of Azerbaijan, internally displaced persons, civil servants with an experience of not less than three years, people with Ph.D., persons who have special merits in the sport, as well as military service with a minimum period of three years enjoy some preferable conditions.

Each family who has the right to a lax mortgage loan can receive it only one time