- Annuity payments - are regular, equal and monthly payments to indemnify mortgage debt (principal debt of the loan and calculated percentage of that debt). These payments must be calculated and allocated so that, at the end of the maturity of loan the debt could be paid.
- Borrower is a citizen of the Republic of Azerbaijan, who has got mortgage loan from authorized credit institutions.
- Co-debtor is a responsible person , who has the full obligation of the implementation for the mortgage loan of the borrower towards the lending institution with the borrower. The number of co-debtors cannot be more than three (3).
- Penalty amounts/Fines - it is the amount of money, which must be paid to the lending loan institution by the debtor (co-debtor) when debtor fails to fulfill his/her obligations according to the loan agreement, or fail to fulfill properly, or fails to meet his/her obligations on time.
- Mortgage securities are specific securities, which guarantee the mortgage right.
- Mortgage loan - is a loan given with the purpose of purchasing residential area with the conditions of being provided with the immovable property, purposeful usage, restoration, debtor’s payment and guarantee within the specified period by the authorized credit organization.
- Mortgage contract is contract, which have been concluded between lender (creditor, who is secured with the obligation by the mortgage) and borrower (borrower, joint borrowers).
- Guarantee of the mortgage loan (item of the mortgage) is mortgage of real estate,which belongs to borrower or third person and bought by mortgage loan. Item of mortgage can be only apartment or residential personal house.
- The initial payment - is resource of borrower, which has been directed to obtaining residential area. The initial payment is equal to the difference between value of residential area, which received by means of the mortgage loan and amount of mortgage loan.
- Loan underwriting - is process of assessment of payment ability of borrower (joint borrower) to repay mortgage loan, also condition and value of mortgaged property.
- Mortgage document - is a collection of documents, which have been formed by authorized mortgage organization about mortgage loan, also accomplishment of obligations of borrower on acquired loan.
- Contract of credit - is a contract in written forms between with the agent credit organization and debtor. In accordance with the same contract, agent credit organization must introduce financial resources (credit of mortgage) to the debtor for buying residential area with the provision of mortgage. And, debtor must pay off financial resources and calculated percent to the agent credit organization.
- Service to credit - consists of following complex events, which is realized by the agent credit organization according to the Service contract. They are :
Receive of the payment of the debtor for the mortgage credit, which belongs to the Mortgage Fund of Azerbaijan, and transferring it to the budge of the Fund
Controlling the condition of item of mortgage credit
Service to mortgage lending.
- The authorized credit organization – which is included in affirmative list by The Central Bank of The Republic of Azerbaijan, and signed a Head agreement with The Azerbaijan Mortgage Fund and non-bank credit organization.
- Residential area – it is a individual house, which its ownership right is officialized in accordance with legislation, or private flat in multi-apartment defined by legislation.
- The contract of trading residential area – is written form of contract agreed between owner of residential area (seller) and debtor (customer). In accordance with the same contract, seller must give residential area to private property of buyer, buyer must receive this residential area and must pay cost of residential area with personal and involved funds, which is shown in contract.
- Refinancing – it is the process of taking demand rights on the mortgage credits, which is paid by The Authorized credit organization, by The Azerbaijan Mortgage Fund.
Translations are not official and not notarially approved.
NUMBER OF MORTGAGE borrowers
The amount of mortgage loans 741 325 449