Kazakhstan’s commercial banks, including Halyk Bank and Freedom Bank, have begun offering mortgages under the Housing and Construction Savings (HCS) system, joining Otbasy Bank in providing loans with interest rates ranging from 5% to 10%.
The new products could divert some demand from traditional market-rate mortgages, Ramazan Dossov, chief analyst at the Association of Financiers of Kazakhstan (AFK), told Kursiv.media.
Borrowers may shift from traditional mortgages
According to the AFK, the mortgage market is more likely to see a gradual shift of some borrowers from conventional mortgages to housing savings programs than a major redistribution of market share between commercial banks and Otbasy Bank.
«A more likely scenario is a gradual shift of some clients who would previously have chosen traditional market mortgages,» the association said. «The new products offer additional advantages, including savings mechanisms, digital loan processing, partnerships with developers and, in some cases, the opportunity to purchase a home without waiting until savings reach half of the loan amount.»
The AFK said these products are expected to increase competition not only among lenders participating in the HCS system but also within the housing savings segment itself by attracting borrowers who previously relied on conventional mortgages.
Traditional mortgages still expected to play key role
The association said the new HCS products are unlikely to replace traditional mortgages entirely.
Unlike HCS loans, conventional mortgages are not tied to savings programs, partnership projects or specific properties, allowing borrowers to purchase nearly any home that meets a lender’s requirements.
As a result, the AFK expects Kazakhstan’s mortgage market to offer a broader range of products tailored to different borrowers and housing needs.
Banks expand HCS offerings
Freedom Bank has introduced HCS mortgages with rates starting at 10.5%, while Halyk Bank offers loans starting at 5%. Developer BI Group has also launched a mortgage product under the HCS system.
In spring 2026, Kazakhstan amended its legislation to allow private banks to accept deposits under the HCS system.
HCS deposits differ from traditional bank deposits in two key ways. The funds can be used only to improve housing conditions, and they typically pay lower interest rates — around 2% to 3% annually. In return, depositors may later qualify for a mortgage with a below-market interest rate.
