Can I get a mortgage on a new build still under construction?
Only conditionally. A mortgage on a completed new build with a registered title is issued in the usual way. For a building still under construction, a mortgage is possible only in projects accredited by the Fund or the bank (MIDA projects, large developers' buildings agreed with a bank). In a non-accredited project the only route is the developer's own instalment plan.
Azerbaijan's new-build market splits in two: fully documented, commissioned buildings and projects still under construction without titles. The first group is straightforward for a mortgage. In the second, the risk is the developer failing to deliver, so banks finance only vetted projects. MIDA (State Housing Development Agency) projects are sold directly with the subsidised mortgage and are the safest route. Below we explain what to watch for in each case.
What you need
- 1 Commissioned building: commissioning certificate, title extract, technical passport; standard mortgage procedure
- 2 Under construction: project accredited by the bank or the Fund, building permit and land documents
- 3 MIDA projects: the Fund's category and income requirements for the subsidised or standard mortgage
- 4 In all cases: a check of the developer's legal status and past projects
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 |
ABB Bank
|
Dövlət ipotekası | 4% | 360 mo. | Details |
ATB Bank
|
ATB İpoteka | 8%% | 300 ayadək mo. | Details |
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Kapital Bank
|
Çıxarışlı evlər üçün ipoteka | 8% | 240 mo. | Details |
İdeal Kredit
|
İpoteka Krediti | 18%-dən başlayaraq% | 60 ayadək mo. | Details |
|
ATB Bank
|
ATB Güzəştli İpoteka | 4%% | 360 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?
- ✓ Ask the developer which banks have a mortgage agreement for the project; if none, no bank will finance it.
- ✓ MIDA projects have a queue and lottery system; register in the electronic system in advance.
- ✓ For a building under construction, pay in stages and make sure the contract has a delivery date and penalties.
- ✓ Mortgage funds may not be released until the title is issued after commissioning; align the payment schedule with the seller accordingly.
Frequently asked questions
Who can buy MIDA apartments?
MIDA projects are sold to citizens who meet the subsidised mortgage categories and the general state mortgage conditions. The queue and selection run through the electronic system.
Can I buy on the developer's instalment plan and later switch to a mortgage?
In some cases yes: once the building is commissioned and the title issued, the remaining debt can be refinanced with a mortgage. Agree it with the developer and the bank in advance.
Is the mortgage rate different for new builds?
The Fund mortgage rate is the same. Some banks discount commercial mortgages for partner developers' projects.
Related questions
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