Measures on simplifying mortgage loans for population taken

/INTERFAX-KAZAKHSTAN, Almaty, August 23, 05/ - Measures on simplifying mortgage loans for population have been taken in Kazakhstan, Mayko Sagindykova chairman of executive committee of Kazakhstan Mortgage Company JSC (KMC). She says, one of the innovations is the fact that commercial banks-partners of KMC JSC will now take no more than 0.5% commissions (before 1%) from mortgage loan amount. Besides, requirements on borrowers insurance have been reduced. Before while executing mortgage loan insurance of property, personal insurance, and sometimes - insurance of civil responsibility was obligatory for borrower, and now only property insurance is obligatory. At the same time, requirements to citizens' paying capacity have been reduced. Thus, size of monthly deductions of borrower has been increased from 35% to 45% from his total income. At the same time amount of borrower's obligatory expenses in his total incomes has been increased from 40% to 55%. "For example: before minimum obligatory monthly total income on one-room apartment was KZT53 th., and now it's KZT41 th., on two-room - KZT79 th. and KZT62 th. correspondingly, on three-room - KZT106 th. and KZT82 th.", - head of KMC said. Current 135.47/$1. Besides, Dulat Alimzhanov chairman of executive committee of Kazakhstan mortgage loans guaranteeing fund JSC (KMLGF) says the fund jointly with KMC JSC intends to introduce a new product on guaranteeing 100% of net losses of creditor as a result of mortgage loans granting. He says using this product will let decrease banks' margin 2 times to 1.1% and, as a result, is to cause decreasing of annual interest rates by banks and mortgage companies on mortgage loans given within realization of state program of house building sale. "So we forecast that number of pretenders to mortgage loans will grow", - Sagindykova said, having added that today over 33 th. families pretend to them. At present the initial payment on mortgage crediting terms is not less than 10% from the amount of loan, repayment term is 20 years, interest rate of creditor is 10%. According to the state house-building program, within 2005-2007 not less than 12 m. sq. m of lodging are to be built at $350 per 1 sq. m. Sagindykova, for 5 years of existence KMC purchased demand rights from banks-partners on mortgage loans for a total of over KZT43 bn. and issued mortgage loans for over KZT20 bn. Dulat Alimzhanov says KMLGF, sine the beginning of its activity, has guaranteed mortgage loans for a total of over KZT2 bn., including within the state program of house-building development there were given guarantees for about KZT773 m. [2005-08-24]