Reduction of maximum mortgage rate to 20% in Kazakhstan postponed until July 1, 2026Kazakhstan's financial regulators propose to postpone the reduction of the maximum mortgage rate to 20% until July 2026. The corresponding draft joint resolution has been prepared by the National Bank and the Agency for Regulation and Development of the Financial Market (ARDFM)."The draft provides for the suspension until July 1, 2026, of the norm on reducing the maximum annual effective interest rate (EIR) on mortgage housing loans from 25% to 20%," stated the ARDFM press release published on Thursday.As explained by the agency, the decision is due to the need for a balanced approach to regulating the cost of mortgage loans and maintaining a balance between the availability of borrowed funds for the population and the stability of the banking sector.The agency believes that reducing the maximum EIR to 20%, given the current cost of money in the economy, would lead to a reduction in market mortgage programs.It is also reported that the ARDFM and the National Bank are developing a new methodology for calculating the EIR for mortgage housing loans, which will include a key parameter - the Loan-to-Value (LTV) ratio, calculated as the ratio of the mortgage loan amount to the appraised (market) value of the housing."The introduction of differentiated maximum EIRs depending on the LTV level will balance the interests of borrowers and lenders, reduce the debt burden on the population, and prevent the accumulation of excessive risks in the banking system," the financial regulator's message says.In June, a joint resolution of the ARDFM and the National Bank of Kazakhstan reduced the maximum EIR limits for mortgages from 25% to 20%. Later, the regulators suspended the amendment on reducing the maximum mortgage rate to 20% until November 1, 2025.Following the increase of the base rate from 16.5% to 18% on October 10, 2025, a number of Kazakh banks suspended the issuance of mortgage loans. (ICE ALMATY)

Fonte notizia: INTERFAX