The period from May to December last year was relatively stable, the average number of mortgages varied between 10.3-13.3 loans per month. However, the indicators on the mortgage market in 2023 cannot boast the same stability. In January, the number of mortgage loans issued in the country sharply halved, surprising many analysts.
In January, Kazakhstan's banks provided only 5,627 mortgage loans, which was a noticeable decrease compared to previous months. This, of course, aroused great interest and discussion among experts and clients of banks.
February and March of last year did not bring significant changes in the dynamics of mortgage loans. The average number of loans issued was about 6 thousand per month, with a total amount of loans in the amount of about 100 billion tenge for each month.
In April 2023, there was a boom in the mortgage market of the Republic of Kazakhstan. This month, more than 10.5 thousand loans were issued for a total amount of more than 168.5 billion tenge.
However, in May, the number of loans issued decreased again to 8.6 thousand mortgages totaling 140 billion tenge.
What is hidden behind the dynamics of the mortgage market? In April, there was a sharp spike in the number of loans issued, which can be explained by seasonal fluctuations. But this does not explain the excessively high growth, which was more than twice the average statistics.
Here, an important contribution was made by the payment of compensation for deposits in the spring. The compensation was 10% of the deposit amount, which encouraged people to use their savings to buy real estate. This factor played a key role in stimulating the mortgage market in Kazakhstan.
Another factor influencing such dynamics is the state bonuses for depositors of Otbasy Bank. This bank is the largest participant in the mortgage market in the Republic of Kazakhstan. In total, these factors pushed people to actively use mortgage loans, and as a result, abnormally high dynamics in the market was recorded.
In early February 2023, as reported in Otbasy Bank in response to a request Krisha.kz about 1.9 million depositors received state bonuses, the total amount of deposits to customer deposits in the bank for 2022 amounted to 75 billion tenge.
In turn, on March 17, 2023, about 2.7 million depositors of various banks received compensation for deposits totaling 306.6 billion tenge. Almost 900 thousand of them had deposits in Otbasy Bank and received 115.1 billion tenge.
According to representatives of Otbasa Bank, these two factors can explain the increase in the number of loans issued in April. The clients decided to postpone the purchase of housing until they received state bonuses and compensation, and only after that they applied for a mortgage loan.
So, in April alone, Otbasy Bank issued 6,768 loans. Compared to March (3,975 loans), February (3,013 loans) and January (3,221 loans), this growth was noticeable.
The 500-thousandth mortgagee is registered in the Republic of Kazakhstan
Most mortgagees in Kazakhstan are trying to get a loan for a longer period in order to reduce the amount of monthly payment.
So, almost 300 thousand borrowers out of 500 thousand will fully repay their loan not earlier than in ten years.