Kazakh Housing Construction Savings Bank completes 2019 plan for issuing military personnel mortgages

NUR-SULTAN – The Housing Construction Saving Bank of Kazakhstan (HCSBK) has fully disbursed funds for the 2019 military personnel housing programme. The programme started May 2 and ended May 27, as the bank announced it was completed ahead of schedule.

The bank issued 680 loans worth 10.7 billion tenge ($US27.9 million). Another 3,143 loan applications worth 46.7 billion tenge ($US121.79 million) were accepted.

“This product is the bank’s initiative. It was developed to support the defenders of the Motherland, to help them quickly acquire their own housing under optimal conditions. For this, HCSBK allocated 98 billion tenge (US$255.58 million) last year. Of these, 48 billion tenge (US$125.18 million) are the bank’s own funds and 50 billion tenge (US$130.4 million) are borrowed funds. As a result, in 2018 we helped solve the housing issue for 2,556 military personnel by issuing loans worth 38.5 billion tenge (US$100.4 million). This year, 60 billion tenge (US$156.48 million) is left to lend. This amount is enough to improve approximately 4,000 people’s living conditions. Approximately 70,000 personnel need housing; in less than two years, the bank has helped to solve the housing issue for 10 percent of them,” said HCSBK Board Chair Lyazzat Ibragimova.

The top three leaders in the number of loans issued this year were the capital (294 loans as of May 28), the East Kazakhstan Region (99 loans) and Semei (77 loans).

The third stage of the Askeri Baspana (Military Housing) programme will start in January 2020. Housing payment recipients (military personnel and their family members) can take a loan to buy housing at a rate of 8 percent per annum with a minimum down payment of 15 percent of the loan amount.

To receive a loan, recipients are not required to participate in the competition and wait for its results, as was the case in 2018. Instead, they need to find a suitable living space and contact the bank. At the same time, there are no restrictions on housing choices. They may choose an apartment in the primary or secondary market, participate in the shared construction or buy a private house with a plot.

The programme is only one of the tools to improve housing conditions for military personnel, as they may also purchase an apartment through the Nurly Zher programme. To participate, an individual should have a 20-percent initial bank account deposit. He or she can then get a 5-percent loan per annum.