Azerbaijani banks change mortgage requirements
The subsistence minimum for the current year in Azerbaijan is set at 155 manat compared to 136 manat in 2016.
The banks, which are authorized organizations of the Azerbaijan Mortgage Fund (AMF), increased the amount of the subsistence minimum for each member of the family for obtaining a mortgage loan, said a message posted on the AMF website.
According to the message, this is connected with the approval of the law "On the subsistence level for 2017". According to the law, the subsistence minimum for the current year in Azerbaijan is set at 155 manat compared to 136 manat in 2016.
According to the message, 13 out of 25 banks which issue mortgage loans through the AMF increased the amount of the subsistence minimum from 136 manat to 155 manat, Muganbank - up to 160 manat, AGBank - up to 170 manat, VTB Bank (Azerbaijan) - up to 175 manat, Expressbank, AtaBank and Azer Turk Bank - up to 180 manat, the International Bank of Azerbaijan, Kapital Bank and Bank Respublika - up to 200 manat.
The amount of the subsistence minimum remained unchanged in three banks, namely, PASHA Bank and Bank of Baku - 180 manat, while UniBank - 200 manat.
Moreover, the banks reduced the amount of the initial payment, in some cases two times. In particular, the amount of the payment on standard mortgage decreased from 50 percent to 25 percent in Bank Respublika, while preferential mortgage from 50 percent to 15 percent.
The initial payment on standard mortgage decreased from 40 percent to 30 percent in PASHA Bank, Muganbank, Express Bank, International Bank of Azerbaijan and AtaBank.
The initial payment on preferential mortgage reduced from 40 percent to 30 percent in AtaBank, Muganbank and Express Bank.