Since 2024, more than 13,000 life insurance contracts and over 37,000 property insurance contracts have been signed under the Mortgage and Credit Guarantee Fund of Azerbaijan (MCGF), according to the organization. This information was provided by Rasim Abdullayev, Director of the Mortgage Loans Department at the Fund, as reported by the Operative Information Center-OMM.
According to Abdullayev, a total of 11,600 properties have been appraised for mortgage loans funded by the MCGF over the past three years.
Furthermore, Abdullayev noted that in the first half of this year, the average value of apartments purchased through mortgage loans was 160,000 manats. "The average value of apartments purchased through standard mortgage loans was 175,500 manats, while those purchased through subsidized mortgage loans averaged 133,400 manats. The average mortgage loan amount was 101,000 manats, with an average term of 290 months and a weighted average interest rate of 6.4%. The average age of borrowers was 34, and the average monthly payment decreased to 702 manats compared to the same period last year," he stated.
The department director emphasized that the current weighted average interest rate for mortgage loans is close to the 6.5% discount rate. "Compared to some European countries, mortgage interest rates in Azerbaijan are considered more favorable. Due to economic realities, mortgage rates in many countries have been increased incrementally. However, thanks to state support, the Fund has ensured the stability of mortgage interest rates for many years," the MCGF official highlighted.
He reminded that the maximum interest rate for subsidized mortgage loans is currently 4%, while standard mortgage loans are set at 8%.
The Mortgage and Credit Guarantee Fund plays a pivotal role in the housing market in Azerbaijan, facilitating affordable home ownership for citizens through state-backed financial instruments. By providing subsidized interest rates and credit guarantees, the Fund supports the government's social policy aimed at improving living conditions for the population.
