The first housing market (newly constructed apartments) is left out of the mortgage - registration of the mortgage loans in the state registry service is considered as one of the most important conditions of lending. Thus, only the houses registered in Azerbaijan by the State Property Committee of the Republic of Azerbaijan may be presented as collateral for a mortgage. If the citizen wants to buy a home without a deduction of mortgages in accordance with the legislation, then the buyer must present any other apartment as a pledge to the bank. If you take into consideration that a person applying for a mortgage loan is often a low-income or homeless person, then a citizen should use the property of another person as a pledge. The main problem here is that anyone agrees to restrict their property rights by pledging their home for 20-30 years. Thus, the lack of chance to predict the future and to predict the future will make people less likely to accept this sacrifice for their friend, relative, or other relative. In other words, the possibility of obtaining a new home as a hostage is quite rare, and the share of such cases in the total turnover of mortgages affects only new buildings. Considering that the initial housing market prices in the country are lower than the recurring market, the problem is simply because the citizen does not take the chance to buy a newly built apartment, and also faces a difficult dilemma as to buying home in more expensive repetitive markets. For these reasons, we want to note that as soon as the sale of newly constructed apartments will be started by the State Property Committee and these purchase contracts should be presented as mortgages. Thus, within the framework of the mortgage program, access to broader markets will be possible for people, and the choice of restrictions will be reduced, and the prices in the secondary markets will be relatively stable.
