Kazakhstan will launch the second round of applications for its Umai subsidized women's mortgage program on Nov 3, offering housing loans of up to 50 million tenge. A total of 20 billion tenge has been allocated for lending in this round, the website infohub.kz reports.
The Umai program is open exclusively to female citizens of Kazakhstan. There is no regional restriction based on place of registration, nor any limit on owning other real estate. Otbasy Bank operates the program.
Kazakh women can apply in three ways: online, through the video service on the Otbasy Bank website or their personal account on Baspana Market; through a bank consultant, who conducts a preliminary affordability assessment and accepts documents; or at a bank branch.
Before applying, it is important to check financial documents and obligations in advance. The affordability assessment takes into account not only the borrower's income but also her expenses and the obligations of other parties to the transaction. In particular, applicants should verify official income for the past six months and timely pension contributions to the UAPF; confirm there are no overdue loans or tax and fine arrears; obtain a credit bureau report and check their credit history for the past 12 months; factor in existing credit cards and credit limits that may affect the affordability calculation; identify up to two potential co-borrowers in advance if necessary, who may include people who are not relatives; and study housing prices and determine suitable apartment characteristics to calculate the required loan amount and down payment.
The lending terms under the Umai mortgage remain unchanged: an interest rate of 14.8% per annum; an annual effective rate (AER) of 16.3–16.8%; a term of up to 25 years; a maximum loan of 50 million tenge; a maximum average monthly net family income of 1.25 million tenge; and a requirement of official income for the past six months.
The down payment depends on the location of the housing. In Astana and Almaty it is at least 20%, while in other regions it starts at 15%. The loan amount is calculated based on the lower of the purchase price or the appraised value of the property. For example, if an apartment in Almaty costs 30 million tenge but an appraiser values it at 29 million tenge, the maximum loan will be 23.2 million tenge. The buyer must cover the remainder herself.
Program participants can buy ready-to-move-in new housing only on the bank's Baspana Market marketplace (otbasybank.kz); housing under construction under a KHFC guarantee or using an insurance instrument; and secondary housing built no earlier than 2016.
Important: the apartment is registered in the woman's name. If the buyer is married, the property becomes jointly owned by the spouses. The husband's personal presence is required when submitting the application.
In the first round of the program, 420 women have already purchased housing, while another 230 are selecting apartments and preparing to take out loans. A total of 9 billion tenge has been used so far. Overall, 90 billion tenge is allocated under the Umai and Green Mortgage programs.