Mortgage Guarantee Fund backs AZN 50 million in mortgage loans: what it means for buyers

According to navigator.az, the Mortgage Credit Guarantee Fund (MCGF) has so far guaranteed AZN 50 million in value across more than 600 mortgage loans. The Fund has been applying this mechanism since 2018, with the goal of letting families with limited savings buy housing with a lower down payment through mortgage loans.

Per the Fund's statement, the guarantee mechanism has sped up the loan issuance process and made financial risk management easier, which in turn has increased the accessibility of mortgage loans. According to the Fund, state-backed mortgage loans currently make up about 8% of Azerbaijani banks' overall loan portfolio and 18% of loans issued to individuals. The MCGF described mortgage loans as "the healthiest loan product" banks offer.

What the guarantee mechanism changes in practice

The guarantee effectively lowers the bank's risk: the down payment a borrower must put up shrinks, since the Fund guarantees the remaining portion. This matters most for families buying their first home without large savings. The fact that more than 600 loans have already closed under this scheme suggests the mechanism matches real demand.

What shows up on Prayk

When reviewing loan terms, it helps to know the real market price. Right now, Prayk's catalog lists 81,178 listings in the "Housing" category. In Baku, the median sale price stands at AZN 270,000 for new-build apartments and AZN 175,000 for older-build apartments. On the rental side, the median monthly price in Baku is AZN 750 for a 2-room apartment and AZN 1,100 for a 3-room apartment. These figures can serve as a starting point when assessing the real market value of a home being purchased via mortgage.

Next steps for buyers

Anyone considering a mortgage loan should first check the price range for comparable apartments in the target neighborhood, then confirm down payment and guarantee terms with the bank. To gauge a property's market value, it's worth browsing listings in the Real Estate section, and the calculator tool can help estimate loan payments in advance.

Source: navigator.az, 2026.