Young Kazakh families, public sector workers entitled to lower down payment through home loan programme

ASTANA – New options have been created by Baspana Mortgage to reduce the financial burden for young families and public sector workers, who can now provide a lower down payment when applying for a mortgage within the 7-20-25 home loan programme.

Photo credit: tengrinews.kz.

The organisation will cooperate with local executive bodies who will subsidise half the down payment for those categories of the population.

“We care about the participation of young families and workers in the public sectors in the 7-20-25 programme. Having received multiple appeals from them about the difficulties of accumulating funds for the initial down payment, we decided to provide assistance to them by offering flexible solutions. We currently are waiting for the response of the local bodies,” said organisation chair Kairat Altynbekov.

Young families include married individuals under the age of 35. The list of eligible participants will be formed by local city akimats (administration).

The options were introduced in test regime in Shymkent.

“Shymkent became the first region, where we will execute project with the city akimat, and we are ready to cooperate with the other regions,” he added.

The Shymkent akimat (administration) will subsidise the initial installment by providing 500 million tenge (US$1.34 million) this year and 1.5 billion tenge (US$4 million) in 2019. The support measure will cover approximately 2,000 young families and public sector employees, who will now be required to pay only 10 percent of the accommodation price as an initial installment.

More than 500,000 square metres or 8,333 apartments will be built in Shymkent under the 7-20-25 programme. Initiated by President Nursultan Nazarbayev earlier this year, it was established to provide favourable conditions for every citizen with official income to purchase housing given the lower 7-percent interest rates (compared to the average 14-16 percent mortgage loans offered by private banks), 20-percent down payment and 25-year loan.

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