Azerbaijan state university of economics unec sabah center

The amount of initial payment is much higher - As stated earlier, 20 % (ordinary mortgage) or 15 % (discounted mortgages) of the value of the property received under the "Rules of mortgage lending at the expense of the Azerbaijan Mortgage Fund at the Central Bank of the Republic of Azerbaijan" must be paid by a citizen. This payment made by a citizen is called "prepayment" and is transferred to the property seller's account. Taking into consideration the other costs incurred during the mortgage process, the citizen should make a preliminary payment of approximately 10-12 thousand manats when receiving a loan of 50,000 manat. It should be noted that, according to the legislation, the authorized banks have the right to determine the initial payment rate. That is precisely why in many cases banks set the initial payment amounting to 25 % of the property. This will increase the initial payment amount, which will be payable for a mortgage of 50,000 manat, to 15-17 thousand manats. The main reason for the initial demand is that banks are trying to insure their activities. As a result, newly established young families or low-income families find it difficult to earn enough money. The reality is that if the family has so much money, it can build a living space of approximately 80 square meters with 3 rooms at the current price and not pay interest rates for 25-30 years. Initial payment is only available in most countries, not in Azerbaijan. However, taking into account the state's financial capacities, this amount can be substantially reduced for the welfare of the citizens. At this time it is possible to divide the population into different categories, as in practice in Turkey, and to determine the initial payment amounts of 5 % -10 % -15 % and 20 %. By the way, it should be noted that this problem has been simplified in many oil-rich countries. A $ 6,000 grant is being provided by the state to solve the problem of housing in Libya. In the future, this debt is removed under various conditions. In the United Arab Emirates all debts are deleted afterthefamily'sthirdchildisborn.