Which bank has the best mortgage rates?
The lowest rates are on mortgages funded by the Fund: 4% subsidised and ~8% standard state mortgage, and that rate is the same at every authorised bank. The difference lies in bank fees, insurance requirements and processing speed. For amounts above the Fund's cap or non-eligible apartments, commercial mortgages run 10–14% a year; the table below compares current offers.
The answer to "which bank is cheapest" depends on the mortgage type. For the state mortgage the rate is set by the Fund, so banks should be compared on costs and service, not rate. For commercial mortgages the rate, down payment and term differ significantly between banks. This page gives the comparison criteria and live offers for both cases.
What you need
- 1 State mortgage: pick a bank from the Fund's list of authorised banks
- 2 Comparison criteria: arrangement fee, insurance (property + life) tariff, appraiser requirements, processing time
- 3 Commercial mortgage: effective annual rate, down payment %, maximum term, early repayment terms
- 4 In both cases: official income and a clean credit history
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 |
ATB Bank
|
ATB Güzəştli İpoteka | 4%% | 360 mo. | Details |
Xalq Bank
|
Daxili İpoteka | 9%% | 264 mo. | Details |
|
Xalq Bank
|
ARİKZF hesabına ipoteka | 7%% | 300 ayadək mo. | Details |
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VTB Bank
|
VTB İpoteka | 8% | 300 mo. | Details |
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ASB Bank
|
İpoteka krediti | 7%-dən başlayaraq% | 300 ayadək mo. | Details |
Sample calculation
Estimated figures for 100 000 AZN over 240 months at ~4% effective rate. The exact number depends on the bank.
How to apply?
What to watch for?
- ✓ For the state mortgage look at the bank's fee, not the rate: the difference between 0.5% and 2% is 1,500 AZN on 100,000 AZN.
- ✓ Life insurance is mandatory at some banks and not at others; over 25 years that is thousands of manats of difference.
- ✓ Your salary bank may offer a mortgage discount too; always ask.
- ✓ With commercial mortgages watch for teaser rates like "8% the first year"; check the rate for later years in the contract.
Frequently asked questions
Can the mortgage rate change during the term?
The Fund mortgage rate is fixed. A commercial mortgage contract may provide for a variable rate; that clause must be stated clearly in the contract.
What is an authorised bank of the Fund?
A bank that has an agreement with the Fund and can issue mortgages from the Fund's money. The list is published on the Fund's website; most large banks are included.
When does a commercial mortgage make sense?
When the apartment does not meet the Fund's requirements (title, age, price cap), the amount exceeds the Fund's cap, or speed matters. The rate is higher, but it is sometimes the only route.
Related questions
Useful links
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