The amount of mortgage loans issued in Azerbaijan in 2021 was 356 million manats ($209.33 million), in 2022 it was 421.5 million manats ($247.86 million), and in 2023 it was 459.4 million manats ($270.15 million). Our citizens have fully used the allocated funds during the mentioned period, which is an indicator of the acceptability of mortgage loans for the population, Deputy Chairman of the Mortgage and Credit Guarantee Fund of Azerbaijan (MCGF), Ramil Tahirov, said in an interview with Report.
"As a result of healthy competition in the field of mortgage lending in recent years, authorized banks are offering mortgage loans at lower interest rates to the population, and as a result, despite the maximum interest rate for ordinary mortgage loans being 8%, the average annual interest rate in 2021-2023 was 7.4%. Interest rates on mortgage loans are higher in CIS countries, as well as countries like Azerbaijan in terms of the economic conjuncture and level of development. So, currently, the average interest rate on mortgage loans in Russia is 13%, including 8% with state support, 10.5% in Kazakhstan, and 43% in Türkiye," he said.
"In the world experience, in a number of cases, floating interest rates are applied and interest indexation is carried out in order to meet the risks that may arise from changes in the economic situation. Over the past 15 years, despite the increase in the nominal income of the population, changes in real estate market prices, and interest rates on financial resources involved, fixed interest rates on mortgage loans have been applied in our country in terms of social protection of the population. Thus, the citizen makes only fixed monthly payments during the entire mortgage loan period," added Tahirov.