The Mortgage and Credit Guarantee Fund of the Republic of Azerbaijan (MCGF) has successfully continued its activities in 2021 to improve the housing conditions of population through long-term mortgage lending.

The authorized banks issued AZN 230.5 million mortgage loan to 3,445 families through the MCGF, 153.6 million of which being mortgage loans (2040 units), AZN 76.8 mln. being preferential mortgage loans (1405 units), in January-July, 2021. In general, the total amount of mortgage loans issued since 2006 is AZN 1, 882 billion. The number of families that improved their living conditions due to these loans was 35,112. More than AZN 625 mln. (12,150 units) are issued for preferential loans. 

According to the distribution of borrowers by jobs, up to 50% of them were employed in the private sector.

About 70% of borrowers are the young and young families.

During the past period, the average cost of housing purchased through mortgage lending amounted to AZN 81.1 thousands, the average loan amount was AZN 55.9 thousands, and the average annual interest rate was 6.3%. Compared to the CIS countries, Azerbaijan has the most favorable mortgage loan terms for citizens. For comparison, the minimum interest rate on mortgage loans in Russia is 6.1%, the average interest rate is 7.4%, while in Kazakhstan the interest rate starts from 13%.