BAKU, July 17 — Azerbaijani President Ilham Aliyev has signed a decree amending the rules for issuing mortgage loans — including preferential ones — through the Mortgage and Credit Guarantee Fund. The updated policy aims to facilitate home purchases under favorable conditions in the territories of Karabakh and Eastern Zangazur, which were retaken by Azerbaijan in recent years.
The decree outlines new criteria for accessing mortgage loans in these regions. According to MP Vugar Bayramov, who detailed the changes on social media, the maximum amount of a concessional mortgage loan cannot exceed 90% of the property’s value at the time the loan is issued.
One key amendment concerns the borrower’s income-to-payment ratio. Specifically, for loans on liberated territories, the monthly mortgage installment must not exceed 75% of the borrower’s total monthly income. This restriction does not apply if the loan amount is less than 60% of the home’s appraised value on the primary market.
“The reforms will enable young families to acquire homes in Karabakh and Eastern Zangazur under favorable terms,” Bayramov noted. “This is expected to accelerate the settlement process in the liberated territories and support the rapid formation of local economies.”
Officials view the initiative as part of a broader effort to resettle displaced populations and stimulate socioeconomic development in regions previously affected by conflict. The program is also seen as a step toward addressing housing challenges for Azerbaijan’s youth while solidifying the government’s strategic goals in Karabakh.
