New favourable home loan programme to begin in second half 2018

ASTANA – The National Bank’s  7-20-25 mortgage programme to provide favourable loans for Kazakh citizens to buy homes will begin in the second half of this year, Kazakh National Bank Chairman Daniyar Akishev announced recently.

“We need to change the legislation to make it work correctly. We will launch the programme on market principles. The banks involved in the programme are going to be main operators. All details are developing to make these banks offer the product (mortgage) from the second half of the year,” he said, adding that the National Bank has requested additional information from government agencies.

Any citizen with stable income in the national currency can apply for the loans at 7 percent interest with a 20 percent down payment and a 25-year loan period.

“Mortgage loans will be provided in tenge. At the same time, banks will not levy any fees and charges related to the servicing,” he added.

The National Bank has also updated its Mortgage Loan Refinancing Programme which was put in place in 2015 to assist borrowers who are having trouble making their payments. The updates will assist foreign currency mortgage borrowers and improve conditions for refinancing loans issued between 2004 and 2009.

“A programme for refinancing mortgage loans was implemented in Kazakhstan in 2015. More than 23,000 borrowers received the assistance within the programme. They could save their housing and ease payments on mortgage loans. It is assumed the amount of refinanced loans will increase up to 2026 and may be approximately 40,000,” said Akishev. “Borrowers that belong to the socially vulnerable group are especially in need of state support. For most of them, the only source of income are government payments and benefits. And they are forced to pay off their loans.”

The National Bank will also allow banks to rent properties transferred from a borrower, with the possibility for the borrower to regain possession. The National Bank is also considering buying properties in the secondary market.

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