Kazakhstan to launch new mortgage program

Kazakhstan plans to launch a new mortgage program. It will be focused on subsidizing the interest rate of the population on the mortgages issued by second-tier banks. Chairperson of Baiterek management holding Kanat Sharlapayev announced this at a government meeting. He noted that next year, unsatisfied demand is predicted for mortgages in the amount of 500 billion tenge or 35,000 apartments. This is mainly due to the increase in the minimum thresholds for withdrawing pension savings and completion of the 7-20-25 program. As a result, the developers can deal with a slowdown in commercial housing sales. A mechanism for subsidizing the interest rate will be launched to cover the demand. The basic terms of the mortgage is the maximum amount of 35 million tenge for up to 20 years with an initial payment of 20 percent.

“Seven percent of the mortgage interest rate is subject to subsidizing. The mortgage should not exceed the base rate of the National Bank by more than five percent. At their own expense, the second-tier banks will be able to issue the loans for primary housing developers and housing under construction, secured by a guarantee of the Kazakhstan Housing Company. The legislative changes are not required to launch the mechanism. The budget application is currently under review by the Kazakh Ministry of Finance. After verifying the budget, the Kazakhstan Housing Company will be ready to launch this program immediately,” Kanat Sharlapayev, Chairperson of the Baiterek National Management Holding, said.