Kazakhstan considers cutting mortgage down payments; all banks may join

Kazakhstan's Ministry of Industry and Construction said all second-tier banks, including Otbasy Bank, will be able to take part in a mechanism to reduce the down payment on mortgages. The mechanism is being developed and agreed with government bodies and financial sector representatives, the ministry told LSM.kz.

The ministry said the specific parameters, including funding sources and conditions for reducing the down payment on housing purchases, still require further work and approval with state agencies and financial organisations. The size of the down payment, participant categories and launch dates have not yet been approved.

On 13 October, Prime Minister Olzhas Bektenov instructed that proposals be prepared to lower the down payment under housing programmes. The task was assigned to the Agency for Regulation and Development of the Financial Market together with the Ministry of Industry and Construction. The proposals are meant to improve the accessibility of housing programmes for citizens.