In accordance with the Decree of President Ilham Aliyev dated January 25, 2019, the application of the rent-to-own mechanism by the Mortgage and Credit Guarantee Fund (MCGF) to improve the housing conditions of citizens whose personal savings are insufficient is being successfully continued.
According to the MCGF, elchi informed that within this mechanism, from 2020 to 2026, fully renovated apartments in 17 residential complexes located at different addresses in Baku, Sumgayit cities, and Absheron district have been provided to citizens, and to date, more than 10,000 rental agreements have been formalized.
The changes made to the rules for renting out residential areas with an obligation to sell, effective from October 1, 2026, are as follows, in order to make the rent-to-own housing mechanism more accessible, to allow more citizens in need of housing to benefit from this social project, to further increase the transparency of work processes, and to prevent abuse:
-A tenant who has acquired an apartment within the rent-to-own mechanism will be able to transfer their obligation to another person after 3 years have passed from the date of signing the contract, and at the same time, individuals who have transferred their obligation will gain the opportunity to benefit again from this mechanism 5 years after the date of transfer of the obligation.
-Borrowers who do not have an active mortgage loan issued at the expense of the Mortgage and Credit Guarantee Fund at the time of application will be able to benefit from the rent-to-own mechanism.
-The conditions for evaluating the applicant’s credit history have also been updated. Thus, based on the evaluation results, only individuals with a “positive” and “satisfactory” credit history will be able to benefit from the rent-to-own housing mechanism.
If citizens have additional questions regarding the changes made to the rules, they can contact the Fund’s 1549 Call Center.