People with active rent-to-own housing agreements in Azerbaijan will no longer be allowed to serve as primary borrowers on mortgages financed by the state Mortgage and Credit Guarantee Fund, under rule changes announced Wednesday.
The change applies to tenants whose contracts with the fund remain in force under its program for renting homes with an obligation to purchase them later. While such an agreement is active, the tenant cannot obtain a fund-backed mortgage as the principal borrower.
The fund said the restriction is intended to give more people who need housing access to mortgage financing, improve transparency and prevent abuse. The announcement did not say that existing rent-to-own agreements or previously issued mortgages would be canceled.
The revised application process will also use the facial-recognition technology of the SİMA İmza digital signature. Applicants will confirm their submissions through biometric identification, a measure the fund said should reduce outside interference, the use of specialized software and other potential abuses.
Instructions are available in the relevant section of the MyGov portal. The fund said people seeking additional information can call its 1549 contact center.
Authorized banks have issued about 61,000 mortgages totaling 4.185 billion manats using the fund’s resources, according to the announcement. Young people and young families account for 67% of recipients.
The fund’s published figures list 60,888 mortgages worth more than 4.183 billion manats, broadly consistent with the rounded totals in Wednesday’s statement. Its rent-to-own program terms describe agreements lasting from three to 25 years.
Sources: Vesti Baku; Report.az on the mortgage-rule change; Report.az on SİMA İmza verification.