Azerbaijan’s place in global ranking of mortgage affordability disclosed

Azerbaijan ranked 82nd out of 109 in the global mortgage affordability rating, having worsened its position by 2 steps, Report informs referring to Numbeo, which is the world’s largest database on the cost and quality of life.

Among the countries of the post-Soviet space, Russia (65th place), Moldova (73rd place), Kazakhstan (74th place) have stronger positions. Georgia (83rd place), Ukraine (91st place), Armenia (93rd place), Belarus (96th place), Kyrgyzstan (98th place), Uzbekistan (102nd place) lost to Azerbaijan in terms of the global mortgage affordability.

The Top 5 countries in the mortgage affordability rating include Saudi Arabia, Puerto Rico, US, UAE and Denmark. The last in the ranking are Argentina, Iran, Syria, Sri Lanka and Cambodia.

Agent banks of the Azerbaijan Mortgage and Credit Guarantee Fund issued mortgage loans for 97.5 million manats from January through March 2021, which is 1.8 times more than in the same period in 2020.

At the same time, in March this year, the fund’s agent banks issued mortgage loans for 39.8 million manats. Over the three months of this year, the fund refinanced loans for 58.3 million manats (an increase of 4.1 times compared to January-March 2020).

In March this year, the Fund didn’t receive money from the state budget of Azerbaijan to finance social mortgage.

In 2020, agent banks of the Fund issued mortgage loans for 257.5 million manats.

Mortgage loans on commercial terms are issued in manats and only to citizens of Azerbaijan. Loans are issued for a period of 3 to 25 years, the maximum loan size should not exceed 150,000 manats, the loan is issued at a rate of no more than 8 percent per annum. The down payment is 15-25 percent.

Only social mortgage is financed from the state budget. Its maximum size is 100,000 manats, the rate is not higher than 4 percent per annum, the term is up to 30 years. The down payment is 10 percent.