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Securing a mortgage in Kazakhstan has become increasingly challenging. With banks tightening their lending criteria and interest rates on the rise, many potential homeowners are facing rejections. This situation has led to a surge in demand for mortgage brokers, individuals who promise to help navigate these difficult circumstances.

A Family's Mortgage Struggle

The Kozhakhmetov family from Astana encountered unexpected hurdles when trying to secure a mortgage. They reported that the interest rate on their housing loan jumped from 14.5% to 20.5%, and ultimately, one of the spouses was denied the loan by the bank.

Seeking a solution, the family turned to mortgage brokers, recommended by acquaintances. They were told that these brokers explore all possibilities for obtaining a mortgage, even in challenging situations.

The Brokerage Offer

Upon visiting the brokerage company's office, the family was presented with a contract. The service fee was approximately 900,000 tenge, with an upfront payment of 300,000 tenge required. The company's frequent advertising on social media led the family to believe it was a legitimate service.

The proposed solution involved refinancing their existing loans and listing the wife as a co-borrower, an option the bank had not offered. Despite the higher interest rate, the family's mortgage was eventually approved through the broker.

What Mortgage Brokers Say

Banu, a branch director at one brokerage firm, explained that clients pay for results and a managed process, not just for the paperwork. "We take on the entire strategy for obtaining approval," she stated.

She detailed the process: brokers analyze a client's income, credit history, and current debt load, identify weaknesses, and select suitable banks. "Each bank has different assessment methods. We create an application strategy and support the client through all stages with the bank," Banu added.

Banu emphasized that her company does not use illegal schemes. "We always explain that manipulating documents is dangerous for the client. We operate strictly within the law and bank requirements," she assured.

She acknowledged that not everyone needs a broker. Individuals with stable, verifiable income, good credit history, and minimal debt might secure a mortgage by approaching banks directly. However, some clients prefer to save time and use brokers for process support.

A Lawyer's Skepticism

Lawyer Daniyar Baigabatov expressed skepticism about mortgage brokers, urging caution. "My recommendation is not to approach mortgage brokers because they promise a lot, like securing a mortgage even with a poor credit history," he said.

Baigabatov explained that automated systems and credit committees at banks make the final lending decisions. He has not personally witnessed mortgage brokers successfully helping clients obtain loans through legal means. "If there are any connections or acquaintances, it is illegal in any case," he noted.

The primary risk, according to Baigabatov, is financial loss. "The risks are that you lose the money you paid for their services. I call them 'helpers,' yes, they do some work, but they don't do it correctly," he stated.

The lawyer advised Kazakhstanis to improve their credit history and contact banks directly. "All information is freely available today. You can apply to the First Credit Bureau to update your credit history. Many issues can be resolved by a person themselves, without intermediaries," he concluded.

Why the Popularity?

Amid rising interest rates and stricter loan conditions, demand for such intermediaries has indeed grown. For many borrowers, brokers represent a last hope after facing rejections from banks.

However, experts advise carefully reviewing contracts, verifying payment terms, and remembering that no intermediary can guarantee mortgage approval. The final decision always rests with the bank.