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Mortgage loans
Currently Mortgage loans are suspended

Being a partner bank of the Azerbaijan Mortgage Fund, OJSC “Bank of Baku” is pleased to offer mortgage loans to its customers.

Please note the following most recent amendments made to the Rules On Issue of Mortgage Loans.

Summary of the Decree of the President of the Azerbaijan Republic dated January 23, 2007 On Improvement of Procedures for the Issue of Mortgage Loans in the Azerbaijan Republic.
By virtue of the above referenced Decree certain amendments were made to the Rules of Issue of Mortgage Loans at the Account of Funds of the Azerbaijan Mortgage Fund under the Aegis of the National Bank of the Azerbaijan Republic and the Rules of Issue of Concessionary Mortgage Loans in the Azerbaijan Republic were approved.
Furthermore, the Cabinet of Ministers was instructed in future to eliminate the requirement for the down payment payable on the receipt of the loan and to establish, for the purpose of minimizing the risks of creditors, Mortgage Loans Guarantee Fund, to be found as a non-commercial legal entity.
The following is the summary of amendments made to the Rules of Issue of Mortgage Loans at the Account of Funds of the Azerbaijan Mortgage Fund under the Aegis of the National Bank of the Azerbaijan Republic:

1. maximum term of the loan – 25 years;
2. maximum amount of the loan – 50,000 manats;
3. maximum interest – 8% per annum;
4. ratio of monthly repayment amount to the total monthly income of the borrower (borrowers) – 70%;
5. amount of the loan shall not exceed 85% of the market price of the underlying property as of the date of issue of the loan;
6. Where the repayment of the loan is secured through the Mortgage Loans Guarantee Fund (at least in the amount of 20% of the loan), the amount of the loan may be equal to the market value of the underlying property;
7. the requirement for the insurance of life and working ability of the borrowers was abolished;
8. now, as an evidence of the residential space to be purchased at the account of the mortgage loan, the applicant should provide not the evidence of the ownership right, but should submit to the Mortgage Fund a document confirming the purchase of the residential space at the account of the mortgage loan;
This amendment will permit the purchase with mortgage loans of residential space in a newly constructed blocks of apartments. However, there is a need for the explanation of the Mortgage Fund as to what categories of documents are going to be acceptable. Also, it should be specifically stressed that in any event, the property to be mortgaged should be accompanied by the documents evidencing the ownership right;
9. before, where within 60 days from the due date the borrower failed to repay the loan (principal and the interest) in time or in full, the Mortgage Fund could submit to the relevant bank a notice requiring the withdrawal of the loan. Now, that period of time was extended to 90 days;
10. The Decree also approved the Rules of Issue of Concessionary Mortgage Loans in the Azerbaijan Republic:

a. Representatives of the following social categories may be entitled to concessionary mortgages:

- the following persons being members of the young family:

a) member of martyr’s family (husband or wife, children);
b) National Heroes (in person, husband or wife, children);
c) internally displaced persons and persons with equivalent status;
d) persons who have been in public service for over three years;
e) persons holding the degree of candidate of sciences or doctor degree;
f) persons with special achievements in sports (honorary physical culture and sports servants, winners of republican competitions (1st place), winners and runners-up of international competition (1st, 2nd and 3rd places);

- military servant of the Ministry of Defense of the Azerbaijan Republic with term of services over three years (except for military servants serving their fixed term military services).

b. maximum amount of the loan – 35,000 manats;
c. maximum term of the loan – 30 years;
d. maximum rate of interest – 4% per annum;
e. any family (person) having the right for the concessionary mortgage loan can use such a right only one time;
f. Concessionary mortgage loans are funded from the state budget.

1. List of documents required for application for the mortgage loan;
2. Calculator for mortgage loan.

Frequently Asked Questions:

Question 1. Who can be eligible for the mortgage loan?
Question 2. Who appraises the underlying immovable property?
Question 3. What is the maximum number of persons whose income can be used for the receipt of the mortgage loan?
Question 4. What should be monthly income of the borrower\joint borrowers?
Question 5. Is there a requirement for the insurance of the immovable property?
Question 6. Are there any limitations with respect to the age of the borrower?

Additional information:


Please send us your queries related to this service or approach any branch or office of the Bank.

Complete application for the loan online.
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