Can I get a mortgage on a home without a title extract?
No. A mortgage pledge must be registered in the state real-estate register, and a home without a title extract (kupça) is not in the register, so neither the Fund nor a bank will issue a mortgage on it. The options are to formalise the title first (through the seller or developer) or to pledge another property and take a secured loan.
A significant share of apartments in Baku and its suburbs have no title extract: new buildings not fully documented by the developer, "unauthorised" constructions, old cooperative housing. Such apartments are cheaper but legally risky and unusable for a mortgage. This page explains why, how to obtain a title, and what financing alternatives exist in this case.
What you need
- 1 For a mortgage: the apartment registered in the state register (title extract) and a technical passport
- 2 New building: commissioning certificate and the developer's ownership documents
- 3 Alternative: a loan secured by other (titled) real estate
- 4 Legal check: the seller's ownership right and the building's legal status
Bank offers that fit this case
| Bank | Loan | Rate | Term | |
|---|---|---|---|---|
Yelo Bank
|
Yelo - Dövlət İpotekası | 8% | 300 mo. | Details |
Unibank
|
Unibank - Dövlət İpotekası | 8% | 300 mo. | Details |
Rabitəbank
|
Sərfəli ipoteka krediti | 8% | 300 mo. | Details |
İdeal Kredit
|
İpoteka Krediti | 18%-dən başlayaraq% | 60 ayadək mo. | Details |
Xalq Bank
|
Daxili İpoteka | 9%% | 264 mo. | Details |
.png){kind=small}
VTB Bank
|
VTB İpoteka | 8% | 300 mo. | Details |
|
Xalq Bank
|
ARİKZF hesabına ipoteka | 7%% | 300 ayadək mo. | Details |
|
VTB Bank
|
VTB Güzəştli İpoteka | 8% | 300 mo. | Details |
Sample calculation
Estimated figures for 60 000 AZN over 180 months at ~4% effective rate. The exact number depends on the bank.
How to apply?
What to watch for?
- ✓ A "notarised sale agreement" is not a title: only the register extract proves ownership.
- ✓ If the developer says "the title will be ready in 6 months", turn that into a written obligation and hold back part of the payment until it is issued.
- ✓ The cheapness of an untitled apartment is the price of risk: resale, inheritance and insurance are problematic too.
- ✓ A titled resale apartment sometimes costs the same but can be bought with a mortgage; compare the options.
Frequently asked questions
How do I obtain a title extract?
In a new building, through the developer after the building is commissioned; for a private house, by applying to the State Service for Property Issues on the basis of land documents and a technical inventory. For unauthorised constructions the process may not be possible.
Is a developer's in-house instalment plan an alternative to a mortgage?
Partly: the developer lets you pay in instalments, but ownership does not pass to you until full payment and the interest terms may not be transparent. Have a lawyer read the contract.
Can I pledge an untitled apartment for a loan?
No; a pledge can only be placed on property registered in the register. Banks do not accept such apartments as security.
Related questions
Useful links
SmartService · smartservice.az
Boiler, AC and washing machine repair — call a technician to your door
Appliance repair, sales and spare parts since 2017. Fast service across Baku.
Call a technician