THE TERMS ON RENT-TO-OWN MECHANISMS ARE SIMPLIFIED AND A NEW APPROACH IS APPLIED

The Mortgage and Credit Guarantee Fund of the Republic of Azerbaijan has made relevant changes to the procedures and rules for the lease of residential premises with the obligation to sell in order to improve the housing and living conditions of citizens, as well as increase accessibility. The changes provide for further easing of income assessment conditions, creating a long-term payment option for the applicant with an older family member, as well as allowing regular taxpayers to benefit from the rental housing mechanism.

According to the amendments, a positive credit history assessment is no longer required for the applicant to have "no liabilities arising more than 90 days over the entire credit history." According to another change, only the age of the applicant will be taken into account when setting the maximum term for the lease agreement with the obligation to sell to the applicant who applies together with a family member. Under the previous conditions, when an older family member applied with the applicant, the lease was set for a shorter period according to the age of the family member, which affected the applicant's ability to pay and choose a place of residence due to the increase in monthly payments. 

In addition, persons engaged in the types of activities provided for in Article 220.10 of the Tax Code (hairdresser, tailor, shoemaker, cobbler, photographer, audio-video service, presenter at weddings and parties, musician, etc.) without the involvement of employees - A new approach is being introduced to ensure that fixed taxpayers also benefit from the rental housing mechanism. According to the new approach, the average monthly income of fixed taxpayers who make timely payments of taxes and other benefits provided by law, but can not confirm their income, will be determined by the period of operation and will be calculated according to the relevant minimum wage. Thus, for the first time, it will be possible for these people to own an apartment on long-term payment terms within the rental mechanism.