Deputy Chairman of the National Bank Berik Sholpankulov commented on the imminent closure of the housing mortgage program '7-20-25' and mortgage product Baspana Hit, the financial regulator's press service said on Friday.
Berik Sholpankulov noted that today the National Bank of Kazakhstan is implementing two mortgage housing programs - this is '7-20-25', initiated in 2018 by Elbasy N.A. Nazarbayev as part of the five social initiatives, and the mortgage product 'Baspana Hit'.
Under the program "7-20-25" Kazakhstanis acquire housing in the primary market at a preferential rate of 7% per annum with an initial payment of 20% for a period of up to 25 years. One trillion tenge has been allocated for the project, as previously reported. In the first year our citizens received 3,289 loans (39.4 billion tenge), in 2019 - 8,723 (99.1 billion tenge), in 2020 - 10,207 (120.8 billion tenge).
It is noteworthy that only in the first 5 months (January-May) of this year, Kazakhstanis have already received 5,656 loans in the amount of 73.9 billion tenge. In general, today 333.3 billion tenge has been spent. Taking into account the active demand and the growth of mortgage lending rates, we assume that the 7-20-25 program will be completed by the end of 2022 - after the allocated limit is used," Berik Sholpankulov said.
He noted that in 2018, in order to stimulate long-term lending in the housing market, the National Bank of Kazakhstan also launched the Baspana Hit market mortgage program at a rate of 10.75% (as of 09.06.2021, pegged to the base rate). In this area, citizens who already have housing can purchase real estate both in the primary and secondary markets. The loan term is up to 15 years, the maximum loan amount is 35 million tenge.
For the implementation of Baspana Hit, 600 billion tenge were allocated, 56,752 loans were issued in the amount of 520.8 billion tenge. We assume that the total volume of lending will amount to about 675 billion tenge. Given the pace of disbursement of funds, we expect that the Baspana Hit mortgage project will be completed by the end of 2021," Sholpankulov continued.
He stressed that the Head of State pays great attention to solving housing issues, therefore, along with the listed programs, many projects implemented by the Government are available on the market.
Thus, within the framework of the Nurly Zher program, social credit housing is available from local executive bodies (LEBs) at a rate of 5% per annum for a period of up to 25 years (with an initial payment of at least 20% - "5-20-25"). In 2019, a program for low-income families "Baqytty otbasy" was also launched with a preferential rate of 2% and an initial contribution of 10%. Within the framework of the project for socially vulnerable groups of the population 'Shakhyrak' (5-10-20), initiated by the order of the President Tokayev, you can buy housing at a preferential rate of 5% per annum for up to 20 years," Berik Sholpankulov noted.
According to him, today mortgage lending is also actively implemented through Otbasy Bank through the system of housing and construction savings. The bank offers a wide range of mortgage products for the population. For example, young families can get a mortgage under the Zhas otbasy program with a 6% per annum rate; the Askeri Baspana program has been developed specifically for military personnel, the rate at which ranges from 3.5% to 8% (depending on the amount of the initial payment). The first female mortgage "Umai" with a rate of 12% was launched relatively recently.
In order to further improve the mechanisms of mortgage lending, the Government, the National Bank and the Baiterek NMH JSC are now considering the issue of introducing the securitization of the mortgage loan portfolio on market principles. We see that there is a large selection of preferential mortgage lending programs on the market, designed for different categories of people, age, social status, and occupation. Therefore, the development of the allocated limits for programs to support mortgage lending, implemented and financed by the National Bank of Kazakhstan, and their subsequent completion will not affect the availability of mortgage lending for citizens of our country," Berik Sholpankulov concluded.
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