The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan and the National Bank of Kazakhstan have drafted joint amendments to the rules on maximum annual effective remuneration rates for loans and microcredits. The main change would introduce a differentiated cap for mortgage housing loans from 1 January 2027 based on the loan-to-value ratio, with a maximum rate of 20% for loans with LTV of up to 0.7 and 25% for loans with LTV above 0.7. LTV is defined in the draft as the ratio of the mortgage amount to the value of the collateral and is treated as a key indicator of mortgage credit risk. In practice, the lower 20% cap would apply to borrowers financing no more than 70% of a home's value, equivalent to a down payment of at least 30%. The draft also keeps the current 25% cap for mortgage housing loans in place from 1 July 2026 to 1 January 2027 and is intended to align the legal framework and remove duplicated requirements.
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan2026-06-05
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan drafts LTV based mortgage rate caps of 20% and 25% from 2027
The Agency for Regulation and Development of the Financial Market of Kazakhstan and the National Bank of Kazakhstan have proposed joint amendments introducing differentiated caps on maximum annual effective remuneration rates for mortgage housing loans from 1 January 2027, based on loan-to-value (LTV) ratios. The draft sets a 20% cap for loans with LTV up to 0.7 and 25% for loans with LTV above 0.7, retains the current 25% cap between 1 July 2026 and 1 January 2027, and aims to align the legal framework and remove duplicative requirements.