Timur Turlov, founder and controlling stockholder of the Freedom Holding Corp. has made a presentation of digital mortgage service to Askar Mamin and Mikhail Mishustin, prime ministers of Kazakhstan and Russia while both attended the Astana International Financial Centre.
More than 200 deals were already closed and about one thousand clients who received Freedom Finance Bank’s approval have been waiting for a response from property sellers, according to Turlov.
«The future is already here: you can open a banking account, pay for the property, change ownership rights or register a bailment in just one day. There is no need to visit the bank in person, contact someone, and even sign any documents. I am proud of Kazakhstan because the country has developed infrastructure for e-government and as a result, we have plenty of opportunities. Also, I am very proud of our team we’ve been working with,» he wrote on Facebook.
As of August 1, Freedom Finance Bank received more than 15,000 loan applications and approved loans for $4.7 million ($32,800 for each loan on average) as the bank’s press service told the Kursiv edition. In Nur-Sultan the average apartment people buy with help of digital mortgage is 60 square meters, and 55 square meters in Almaty. The entire process from applying for a loan and obtaining an apartment’s key counts for 24 hours, the bank noted.
Freedom Finance Bank is the first bank in Kazakhstan that reached the level of digitalization of mortgage in 90%. The service is available for any citizen above 21 years old but a borrower couldn’t be older than 63 as of the last payment under the loan. The only requirements to a collateralized property are the year built, which should be not older than 1965, and a floor space of at least 29 square meters. The minimal sum of the loan is $7,000 for 15 years with 20% of initial payment and an interest rate of 14%.
The process of loan issuing includes six stages. First of all, you have to identify what terms of a loan you can afford – you can do that with the help of a loan calculator. The second stage is filling out an application. All you need at this point is your personal identification number and phone number. For proper identification, Freedom Finance Bank may call you via video call. After that, the bank estimates a property; it uses Big Data to get an apartment’s estimate as accurate as possible and the system works perfectly. All proper documents are prepared by a certified notary and can be signed online. Once the agreement of sale and purchase is signed, a client can be considered as a new property owner.
According to the Association of Financiers of Kazakhstan, in the first half of the year mortgage loans portfolio in Kazakhstan reached $1.4 billion compared to $508 million last year. Over the last five years, the banking portfolio of mortgage loans rose 2.8 times from $2.1 billion to $5.8 billion. This growth is based on increasing demand for mortgage loans due to the huge supporting programs launched by the government. State programs such as «7-20-25» and Baspana Hit as well as Otbasy Bank offerings fuel the people’s interest in those loans. Half of them have been issued in Nur-Sultan and Almaty; others in Mangistau, Aktobe, East Kazakhstan, Karaganda regions and the city of Shymkent.
Freedom Holding Corp. provides retail securities brokerage, research, investment counseling, securities trading, market making, corporate investment banking, and underwriting services through its subsidiaries of Freedom Finance. In August 2020, Freedom Holding Corp. announced its $52.9 million acquisition of Kassa Nova, a Kazakhstani commercial bank, which got the new name of Bank Freedom Finance Kazakhstan.