Azernews.Az

By Nigar Abbasova

President Ilham Aliyev has signed an order on several issues of Mortgage Lending.

The order envisages creating the E-Mortgage system via E-government portal and applying the system beginning from January 1, 2017. The order outlines the procedure of mortgage lending, including easy mortgage lending, at the expense of the Azerbaijan Mortgage Fund.

The new system is expected to facilitate the Azerbaijani citizens to get a loan, increase the transparency in allocation of mortgage loan allocation, as well as strengthen the control system of the fund.

Customers are expected to be able to get all relevant information on authorized banks, insurance and appraisal companies as well as send online applications through the new information system. E-mortgage will enable customers to submit e-applications for a mortgage loan and to appoint a meeting in e-form at a potential bank lender.

One of the main objectives of the system is to minimize human factor in the process of mortgage credits issuance, as well as reduce the number of required documents. The system is also expected to boost the efficiency in this sphere and widen the access of the regions to the mortgage services.

Mortgage in Azerbaijan is given only for an apartment or private house and its amount should not exceed 80 percent of the market value of the property. Mortgage payments cannot exceed 70 percent of the total monthly income of the borrower. Payments are carried out on the principle of annuity.

The Fund will give a mortgage loan for a term of 3 to 25 years and an easy mortgage loan for up to 30 years. Only housing with the state registration of ownership right for property with an area of up to 100 square meters are eligible to be subjected to the process of mortgage.

E-Mortgage system is obliged to contain information about the list of documents required for obtaining the credit and sum of payments, and the program of mortgage calculator for the preliminary estimation.

The AMF Supervisory Council is tasked to fix the annual interest rate on AMF loans, including easy mortgage lending.

Formation of e-government in Azerbaijan is considered to be one of the important tasks of the National Strategy for information and communications technologies for the development the country.

The e-government portal was launched in Azerbaijan in 2013. Since then state institutions in Azerbaijan have been establishing e-service sections on their websites. The portal offers approximately 400 e-services through 45 government agencies. Over one million citizens are active users of e-services of the state agencies. Moreover, the e-government portal also allows for the provision of e-services to citizens of foreign countries.

All services provided by Azerbaijani government agencies are expected to be online by 2020.

The AMF will be assisted in the e-mortgage project by the Ministry of Communications & High Technologies, the Financial Market Supervision Chamber and a number of ministries and departments.

The Cabinet Ministers is tasked to prepare the Regulation on E-Mortgage, and make proposals for registration and online circulation of mortgage securities within the period of two months

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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

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