Before applying for a mortgage, many Kazakhstanis have doubts: will the bank approve the loan? However, you can assess your chances yourself if you know the key criteria that financial institutions consider. Let's look at what to pay attention to in order to increase the likelihood of a positive decision, reports infohub.kz.
First, experts recommend checking your credit history. It shows all current and repaid loans, as well as any delinquencies. If you have existing debts or overdue payments, it's better to settle them first, as even old debts can affect the bank's decision. A lack of credit history can also be an obstacle, as it's harder for the bank to assess your creditworthiness.
It's also important to consider your debt load. Banks analyze not only your future mortgage payment but also your existing obligations. Therefore, before taking out a mortgage, it's advisable to close consumer loans and installment plans. The fewer monthly payments you have, the more income remains for the mortgage. Remember that the allowable debt-to-income ratio in Kazakhstan is 0.5, meaning all loan payments should not exceed 50% of your income.
Banks thoroughly verify official income. If part of your salary is paid unofficially, it won't be counted. So before applying, make sure your pension contributions match your actual income level. If you have multiple official jobs, you need to provide proof of additional earnings. Also important is your tenure at your current job: usually at least six months is required, and pension contributions must be continuous. A sudden job change before applying for a mortgage can reduce your chances of approval.
Before approaching a bank, you should also assess the following: the size of your down payment; the monthly payment amount you can consistently afford; interest rates on mortgage programs from different banks; the maximum loan term; and the requirements for the borrower and the property itself (year built, type of house, condition, documents). If you plan to take a loan from Otbasy Bank, deposit funds into a housing savings account in advance to build the required evaluation score. Don't forget about additional costs for processing the mortgage.
Thus, before applying, make sure you have a down payment, a good credit history, sufficient official income, a manageable debt load, and housing that meets the bank's requirements. Only then can you confidently apply for a mortgage. Earlier, an expert named five common mistakes Kazakhstanis make when getting a mortgage — details in our article.