Mortgage interest rates for new apartments have been reduced, the Mortgage Refinancing Company reported referring to the February 21 presidential decree Monday.

Now individuals can purchase housing on more favorable terms thanks to updated mortgage programs offered by partner banks, the report says.

New mortgage lending conditions:

• Loan term - up to 20 years;
• Maximum mortgage amount: up to 800 million soums - for Tashkent, up to 500 million soums - for other provinces;
• Down payment - not less than 25%;
• LTV, loan-to-value - the maximum limit on the ratio of the loan amount to the value of the collateral should not be lower than 75%;
• Debt burden ratio (ratio of average loan payments to the average monthly income of the borrower) - no more than 50%;
• Borrowers must be between 18 and 60 years old;

The mortgage rates will now be calculated using the formula: the Central Bank's base rate (now 13.5%) + 6%. Previously, this figure was +8%, so the new rate will be 19.5% instead of 21.5%.

The following banks are participating in the program: Hamkorbank, InFinBank, Orient Finans Bank, Agrobank, Asakabank, Ipoteka-Bank, Narodny Bank, Turonbank, NBU (National Bank), and Business Development Bank (BRB).

The presidential decree instructed the Ministry of Economy and Finance to ensure that, based on applications from the Mortgage Refinancing Company, to provide the company credit resources for a period of up to 20 years at a rate exceeding the Central Bank's base rate by 1 percentage point.

The said resources are used to refinance mortgage loans issued for a period of up to 20 years for the purchase of apartments in the primary housing market, at a rate exceeding the Central Bank's base rate by no more than 6 percentage points, and meeting the terms and conditions set by the company (19.5%).

In 2024, the number of mortgage borrowers decreased by 16% - to 58.8 thousand people. The average loan size, on the contrary, increased by 18% - to reach 290 million soums.

Uzbek state-owned banks began accepting applications for mortgage loans and subsidies since March 3. It is expected that 2.5 trillion soums will be provided for 30 thousand applicants from the state budget.